China clears first Australian coal import in over two years
The arrival in China of the first loads of Australian coal in more than two years marks the resumption of a trade previously worth $14.1bn.
The first loads of Australian coal to be shipped to China in more than two years have arrived in Guangdong province amid a flurry of positive signalling by Beijing about the trade outlook for the two “highly complementary” economies.
In a further good sign for Australian exporters caught up in China’s trade coercion campaign, Chinese authorities have begun to issue permits that would allow the resumption of Australia’s live lobster trade. Previous applications had been denied. The first lobsters could be flown to China within weeks.
Late on Thursday, Trade Minister Don Farrell was waiting on confirmation that the coal did not encounter any unforeseen problems from China’s customs.
“Any step towards resolving the trade impediments would be welcome,” Senator Farrell said in a statement.
But data on the Marine Traffic vessel tracker and reports in local Chinese media suggest the resumption of Australia’s coal trade — previously worth $14.1bn — has begun.
The Tiger East bulk ship unloaded its cargo of 66,000 tons of Australian thermal coal at a port for the Taishan Power Plant, according to a report by the local Guangdong media.
On Thursday afternoon, the bulk ship was sailing to another port in the southern Chinese province for new cargo.
Another bulk carrier, Magic Eclipse, was still waiting for clearance for its cargo of Australian coking coal at a nearby port. The coking coal has been bought by Baowu Steel, the world’s biggest steel maker, and one of four Chinese government-backed firms given permission by Beijing in early January to purchase Australian coal.
The trade resumption came as China’s Foreign Ministry welcomed recent comments by Anthony Albanese about the importance of Australia’s economic relationship with China.
“The Chinese side stands ready to work together with the Australian side to further deliver on the important common understandings reached between our two leaders in their meeting in Bali,” said Chinese foreign ministry spokeswoman Mao Ning on Wednesday evening.
The breakthrough follows Monday’s virtual meeting between Minister Farrell and China’s Minister of Commerce Wang Wentao.
China in 2020 imposed trade bans on exports previously worth more than $20bn a year, spanning cotton, timber, woodchips, lobsters, wine, barley, copper and coal.
Some further unwinding of those bans is expected ahead of a visit by the Australian Trade Minister to China in the coming weeks.
The arrival of the Australian coal shipments has been widely reported by Chinese media. Chinese foreign policy experts told party state media that the Albanese government’s “more pragmatic” foreign policy had allowed the resumption.
Zhou Fangyin, a research fellow at the Guangdong Institute for International Strategies, told the Global Times: “Along with the restoration of bilateral ties, co-operation in sectors, including trade and tourism, is expected to be promoted.”
Zhou noted that “Australia will eventually find out where its interests lie”.
Benjamin Herscovitch, an expert in the Australia-China relationship at the ANU, said Canberra was benefiting from Beijing’s wider re-engagement with the world and recognition that its economic coercion campaign on Australia hadn’t worked.
“I wouldn’t be surprised if by the middle of the year, we are at a point where the bulk of the Australian exports that have been restricted to the Chinese market are getting back in,” he told The Australian.
“Not necessarily in the same quantities … but still getting in.”
Coal exports made up more than half of the total amount of Australian exports blocked by China. The ban was never made official, allowing Beijing to easily unwind it.
Beijing suddenly stopped clearing Australian coal in November 2020, leading to chaos for cargo ships whose crews became effectively trapped off China’s coast.
By the end of 2020, a flotilla of more than 80 ships — carrying more than $1bn of black-listed Australian coal cargo — was stuck off the Chinese coast, as China’s customs refused them clearance.
More Coverage
