China trade ire turns to more QLD resources
China’s trade ire is turning to yet another multimillion-dollar Queensland resources industry, putting exports at risk.
QLD Politics
Don't miss out on the headlines from QLD Politics. Followed categories will be added to My News.
There are fears a multimillion-dollar blow to Queensland’s resources sector is coming from China, with copper and sugar now expected to join the growing raft of trade sanctions from our largest trading partner.
Queensland exports have been hit by all but two of Beijing’s bans or restrictions as relations have deteriorated this year.
Hong Kong media area reporting overnight trade sources say copper and sugar will be the next industries targeted, expected as soon as this week, though Government sources are playing down the reports.
Red flags over Brisbane council’s links to China
China’s potential $10 billion coal threat to QLD
Industry sources said they were aware of the reports and keeping an eye on the developing situation.
Copper exports to China from Queensland are worth $313 million a year, while sugar is about $4 million, according to government data.
It follows Queensland timber being held up in customs due to claims of an invasive beetle being found in the product, while another barley producer is also being held up.
Trade Minister Simon Birmingham said the reports of disruptions across multiple markets were a concern, but it was important not to jump to conclusions.
“We continue to make inquiries with Chinese authorities to seek clarity and to encourage them to address areas of concern … China has consistently denied any targeting of Australia and spoken about its commitment to trade rules,” he said.
China’s foreign ministry spokesman Wang Wenbin said the pests would cause damage to the country’s forestry and ecological security if allowed in.
“We hope that the Australian side will take effective measures to strengthen export quarantine and ensure the exported timber meet China’s quarantine requirements,” he said.
“We hope Australia can do more things conducive to mutual trust, bilateral co-operation and the spirit of China-Australia comprehensive strategic partnership, and bring the bilateral relations back to the right track as early as possible.”
Agriculture Minister David Littleproud said the government was aware of the suspended Australian exports in timber and barley.
“Australia has strong regulatory controls that underpin the integrity and biosecurity of all products exported. We will work with the Chinese authorities to investigate and resolve these issues,” he said.
Australian copper exporter Sandfire Resources released a statement to the ASX saying they were aware of the reports, “not aware of the reasons for the reported potential ban or the reliability of the media reports”.
“Sandfire is confident in its ability to increase sales contract volumes to existing and also new copper concentrate customers in non-Chinese markets,” the statement said.
Glencore boss Ivan Glasenberg said in August that the tensions between China and Australian were “hurting” the coal market.
There have been tariffs, restrictions or other issues on wine, barley, cotton, beef, timber and rockfish, while there have been claims of a slowdown on imports of Australian coal.
Queensland has valuable exports to China in all those areas except cotton and barley.
