Australia urges China to end unofficial coal ban

Australia has called on China to end an unofficial ban on a key export in what would be a huge step in repairing international ties.

Treasurer Jim Chalmers has called on China to end the unofficial ban on Australian coal, saying doing so would be an important step in repairing Australia’s relationship with Beijing.

Speaking on the sidelines of the G20 in Bali, Mr Chalmers called for China to also end the restrictions currently impacting other Australian goods.

“It should extend to the restrictions that are placed on some of our other exports as well in the interests of our employers and our exporters here in Australia,” he said.

China introduced several tariffs and an unofficial ban on resources like coal in 2020 after then-prime minister Scott Morrison pushed for an investigation into the origins of Covid-19.

Now, China has been contemplating easing restrictions around Australia’s coal exports over reports the country is seeking to avoid the power shortages that saw factories shut down and caused sudden blackouts last year.

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There are rumours that China is considering overturning the unofficial ban on Australian coal. Picture: Brendon Thorne/Bloomberg

Keen investors wasted no time jumping on to these rumours, resulting in a rise in share prices for coal mining companies.

Speaking to Sky News on Sunday, Mr Chalmers said the reversal of the ban would be a “very welcome development”.

“Clearly, that would be good news for our exporters, and we’d like to see it happen,” he said.

“We’ve made it clear, really, for the whole duration, so far, of this Government, that an important part of stabilising relations with China is to see some of those sanctions lifted on our employers here in Australia.”

However, Mr Chalmers noted such a move has not been officially confirmed.

Bali’s G20 finance summit was set to focus on the global cost of living crisis, though much of the talks were focused on the situation in Ukraine.

Mr Chalmers said the anger within the international community is still “white hot” due to the huge costs of the “illegal and immoral and unjustified invasion of Ukraine”.

Treasurer Jim Chalmers said removing the ban would be a ‘welcome’ move from China. Picture: Jerad Williams

Jim Chalmers during the G20 Finance Ministers and Central Bank Governors Meeting in Bali. Picture: Made Nagi/AFP

“It comes with a huge economic cost, it turbocharges so many of the difficulties that we’re seeing in the global economy right now,” the Treasurer said.

“So there’s a lot of anger in the room right now, particularly when you consider that most countries are dealing with high and rising inflation, they’ve got rising interest rates … we’ve got serious issues with food and energy insecurity.”

Dutton questions China talks

Opposition Leader Peter Dutton has questioned the Anthony Albanese’s bid to repair the relationship with China, saying Australia should instead be holding Beijing accountable for human rights abuses and its military moves.

Speaking to Sky News, the Liberal leader said if the Government has a dialogue with China then that should continue to be pursued, but there were hard questions that needed to be asked.

“The Australian Government needs to be serious in its discussion, and we need to ask China to explain the human rights abuses and to explain what’s happening in relation to their military build-up,” he said.

“We can’t continue to talk while China continues to amass nuclear weapons.”

Liberal Leader Peter Dutton has questioned the Government’s talks with China. Picture: NCA NewsWire/Tracey Nearmy

Mr Dutton said the Albanese Government needed to be “frank and honest” about the biggest security issue facing Australia, which he claims is “China and their acts of aggression”.

Last week, Mr Albanese said while his Government wants to co-operate with China, it would also stand up for its own interests.

“Look, Australia doesn’t respond to demands. We respond to our own national interest,’’ the Prime Minister said.

“I’ll say this. We will co-operate with China where we can. I want to build good relations with all countries. But we will stand up for Australia’s interests when we must.”

His comments were in response to a list of demands laid out by China in order to improve ties between Beijing and Canberra.

China’s Foreign Minister Wang Yi issued Australia’s Foreign Minister Penny Wong with a four-point list of things that need to be done to repair the relationship between the two countries.

The demands were as followed:

1. Australia must treat China as a “partner rather than a rival”.

2. The two countries must seek “common ground while shelving difference”.

3. Australia must reject “manipulation by a third party” – which was a clear reference to the US.

4. Both countries must build “public support featuring positiveness and pragmatism”.

Mr Wang blamed the former Morrison government’s “irresponsible” words and deeds for the difficulties in the relationship.

“The root cause of the difficulties in bilateral relations over the past few years was the former Australian government’s insisting on regarding China as a rival or even a threat, allowing its words and deeds being irresponsible against China,” he said.

“It is hoped that the Australian side will seize the current opportunity and take concrete actions to reshape its correct understanding of China, reduce negative assets and accumulate positive energy for the improvement of China-Australia relations.”