China trade bouncing back, as coal ban stays in place

Queensland’s trade with China has bounced back after hitting a five-year low, despite Beijing so far maintaining its unofficial coal ban. But exports of the black rock have skyrocketed to other countries.

Queensland’s trade with China has bounced back after hitting a five-year low, despite Beijing so far maintaining its unofficial coal ban.

New trade data also shows that exports of coal to Japan, Vietnam and Korea have skyrocketed and is responsible for the state’s total exports to those countries doubling.

Trade Minister Don Farrell doubled down on his calls for Beijing to lift its full range of sanctions against Australia, as he prepares for talks with his Japanese counterpart next month.

Trade Minister Don Farrell. Picture: AAP Image/James Ross

Queensland’s exports to China in 2021-22 were back up to $17 billion after hitting a five-year low in 2020-21 of $14.1 billion, according to analysis of Department of Foreign Affairs and Trade data.

If it wasn’t for the unofficial coal ban, worth about $10 billion to the state’s exports to China, trade to China would have been back to its pre-pandemic highs of about $27 billion.

Mid-last month there were reports Beijing may consider lifting the ban, which has been in place since November 2020.

Mining industry sources have told the Courier-Mail that despite the initial reports, they have yet to see any movement or further development of this so far.

Senator Farrell said it was in both countries’ best interest for China’s trade sanctions to be dropped.

“China remains our largest trading partner and we want to see trade blockages affecting Australian exports removed so that trade, which has benefited both our countries, can continue unimpeded,” he said.

The data also shows exports to Japan have significantly increased to $20.7 billion in 2021-22, up significantly from $7.8 billion in 2020-21 and $9.9 billion the year prior.

A big driver of the trade boom with Japan has been coal, where exports of the resource leapt to $15 billion from an average of $4.7 billion a year for the previous decade.

The Queensland Government increasing coal revenues has created diplomatic tensions, with Japan’s ambassador to Australia making a rare criticism of the move and warning it could drive away investment.

Senator Farrell said he expected to meet Japan’s Trade Minister Nishimura Yasutoshi next month when he will be in Los Angeles for Indo-Pacific Economic Framework negotiations.

“I have had a number of very positive bilateral and multilateral meetings with my counterparts recently, and am scheduled to meet with the Japanese Ambassador soon,” he said.

Queensland’s exports with South Korea have surged to $17.4 billion in 2021-22 from $7.5 billion last year, with an increase in coal trade responsible for almost $8 billion of that.

Coal exports to Vietnam also rose from $1.2 billion to $4.3 billion in 2021-22, resulting in the state’s total trade with the nation increasing from $2.4 billion to $5.5 billion.