Australia says it will pursue all avenues on reports of China coal restrictions
15 December, 2020
Australian Prime Minister Scott Morrison said any shift by China from imports of high-quality Australian coal will be a "lose-lose" for the surroundings and trading relationship.
Chinese media outlets including The Global Times and Caixin in Monday reported China's leading economic planner had granted authorization to power plants to import coal without clearance constraints, except for Australia.
Australia on Tuesday (Dec 15) urged China to clarify the reports, which it said would breach international trade guidelines if true.
Coal may be the third biggest export from Australia, which includes been embroiled in a worsening diplomatic dispute using its largest trading partner China. Beijing has got imposed a number of trade reprisals after Canberra called for an international inquiry in to the source of the coronavirus.
Australia's primary minister said a shift by China away from Australian coal imports will be "a bad result for the surroundings".
"It truly is a lose-lose here because Australian coal, in comparison to that coal that's sourced from other countries, the other countries have 50 per cent higher emissions than Australian coal," Morrison told media on Tuesday.
Although A$4 billion of A$13 billion (US$3 billion to US$9.8 billion) in thermal coal exports visited China, it had been not Australia's largest buyer, said Morrison, adding any limitations on Australian coal will be in breach of World Trade Organisation (WTO) guidelines.
Shares of Australian pureplay coal exporters fell sharply. Shares of New Anticipation Corp Ltd and China-managed Yancoal Australia Ltd were down 12 % in morning trading, while shares of Whitehaven Coal Ltd had been down 9 %, against a slightly weaker total market.
Diversified mining giant BHP Group Ltd, which has coal mining interests, was down 2.5 %.
Trade Minister Simon Birmingham said there had been "a design of disruption" of Australian trade with China, and it had been well documented vessels have been delayed found in offloading Australian coal.
Australia has raised concerns at a WTO meeting about China taking methods against Australian barley, wine, meat, dairy, live seafood, logs, timber, coal and cotton.
Beijing's opaque action found in the resources sector involved "disruption through make use of express influence with different companies", Birmingham said on Tuesday.
Minerals Council Australia leader Tania Constable said the achievements of Australia and China's trade found in minerals relied on a good "rules-based trade system".
The council encouraged the "Australian and Chinese governments to interact to solve these issues and restore stability to the long-term trading relationship," she said in a statement.
The Chinese embassy previous month outlined grievances about restrictions on Chinese investment in Australia, and criticism of China by Australian parliamentarians and the media.
Morrison said Australia was first a good liberal democracy and his federal government would not back off on these issues.
"If a notion emerges that there is a good conflation between political issues and a trading relationship ... That can create a whole lot of uncertainty for many other trading partners," he said.
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