China coal shipment signals trade war end

The first shipment of Australian coal to China for more than two years will arrive in South China’s Guangdong Province on Wednesday.

A coal ship leaves Gladstone harbour in Queensland.

The first shipment of Australian coal to China for more than two years will arrive in South China’s Guangdong Province on Wednesday amid hopes Beijing’s long-running trade war against Australia will soon be resolved.

A second coal shipment is due to arrive in China by the end of the month, while federal government officials are also confident Beijing’s ban on Australian seafood has been lifted after Chinese authorities waived through an application for Chinese buyers to import Australian lobsters.

Trade Minister Don Farrell is due to visit China within weeks after a teleconference on Monday with Chinese counterpart Wang Wentao, in which the leaders agreed to work towards the “full resumption of trade” between the countries.

There is now growing confidence in Canberra that Beijing will lift its full complement of trade bans against Australia within months. The bans on Australian barley and wine will be the most difficult ones to resolve, requiring legislative changes by the Chinese government.

But Australian officials are hopeful the measures will be overturned before World Trade Organisation decisions in coming months that they are confident will fall Australia’s way.

The Australian understands that if China lifted its restrictions on importing Australian barley and wine, then the Albanese government would drop its WTO cases, allowing Beijing to avoid any loss of face.

A Chinese steelmaker has ordered 72,000 tonnes of Australian coking coal, which is due to arrive at Zhanjiang Port on Wednesday.

Chinese government mouthpiece The Global Times said the resumption of the coal trade “comes amid restored enthusiasm and attention among Chinese companies toward Australian goods”.

Senior Australian government sources said Senator Farrell’s talks with Mr Wang were “surprisingly warm and friendly”, raising hopes of a swift resolution to Beijing’s punitive trade bans on Australian products.

After the ministers’ teleconference on Monday, Mr Wang said his country was willing to restart “the trade exchanges mechanism” with Australia, but remained “highly concerned” about Australian restrictions on Chinese investment.

He said in a statement that both sides had a “professional, pragmatic and frank exchange”.

“China is willing to restart the economic and trade exchanges mechanism with Australia; expand the scope of co-operation in emerging areas such as gas … and new energy, and promote the high-quality development of economic and trade relations between the two countries,” Mr Wang said. But, amid heightened sensitivity to Chinese investment in key Australian assets, he said China was “highly concerned about Australia’s tightened security review of Chinese enterprises’ investment and operation in Australia”.