Australia asks for clarification on the coal import "block" in China



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Ships and Containers in a Port of Dalian, China

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One of the largest ports in China reportedly stopped imports of Australian coal

The Australian government said it was seeking "urgent" clarification from Beijing that a major Chinese port would have halted imports of Australian coal.

Australia is one of the leading coal suppliers in China, its main export market.

Beijing did not confirm the reported halt in Dalian port, but described the changes to these arrangements as "normal".

Canberra sought to downplay speculation on Friday that the case could be linked to bilateral tensions.

Australian officials said that there was "confusion" about the situation and that they were consulting with their Chinese counterparts.

"I will not jump to conclusions – Australia's trade relations with China are exceptionally strong," Treasurer Josh Frydenberg told the Australian Broadcasting Corporation.

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Fears over the problem led to the fall of the Australian dollar.

What happened?

On Thursday, Reuters announced that the Dalian port area in China would not allow Australian coal to clear customs.

According to sources quoted by the news agency, only Australian coalmakers would have been affected and no limit would be imposed on Indonesian and Russian shipments.

He added that other Chinese ports have delayed Australian coal shipments in recent months.

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Reuters

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Coal is Australia's leading export product

Australian trade officials said they had been informed of recent industry concerns about market access.

Asked about the reported interruption, Chinese Foreign Ministry spokesman Geng Shuang commented in general terms that the authorities were seeking "to protect the rights and interests of Chinese importers and to protect the Chinese". environment".

What else is being debated?

Some security analysts in Australia have hinted that it could be a blow for China, after Australia prevented Huawei technology giant from providing 5G technology.

"The ban on these coal cargoes is a form of coercion against Australia – it's a punishment against states that resist pressure from China," said Dr. Malcolm Davis, of the Australian Strategic Policy Institute.

Other recent tensions have emerged as a result of allegations – denied by Beijing – of China's interference in Australian politics and society.

However, others, including the head of the Reserve Bank of Australia, have hinted that China's concerns over its own coal sector could be at the root of such rulings.

Blocking "a few months of coal exports" would not hurt the Australian economy, said Philip Lowe.

"If this were to be a sign of a deterioration in the underlying political relations between Australia and China, then it would be more worrying," he said.

Frydenberg said: "We can see these casual interruptions smoothly, but that does not necessarily translate into some of the consequences that some aspects of the media might want to tackle."

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