Canberra yesterday denied reports Australian coal was being blocked from entering China, as the government sought to quell fears that worsening diplomatic tensions are damaging the nations’ crucial trading relationship.
Industry experts have recently said that China appeared to be delaying customs clearances for Australian coking coal used in steelmaking, and a report late on Thursday that ports in the northern city of Dalian had banned the shipments sent the Australian dollar plunging.
China is Australia’s biggest trading partner and coal is the resource-rich country’s most valuable export.
Australian Minister for Trade, Tourism and Investment Simon Birmingham said there was “no basis to believe that there is a ban” on Australian imports.
“We believe and understand that these are simple import quotas, consistent with what China has applied before and continues to apply and apply equally to all countries,” Birmingham told reporters.
“This is not the first occasion where Australian coal exports to China have slowed in terms of the pace at which they are processed or assessed and let into the country... It is unlikely and unhelpful to try to conflate other unrelated issues,” he said.
He added that officials were seeking reassurances from Beijing that Australia was not the only country being targeted.
Australian Prime Minister Scott Morrison earlier said that regulatory rather than political issues were at play, adding that there was “no evidence” any hold-up of imports was related to other issues between the two nations.
There has been speculation about whether the delays have been about addressing domestic pressures, or retribution over Canberra’s decision to ban Chinese communications giant Huawei Technologies Co’s (華為) 5G equipment over security risks.
Canberra and Beijing have sparred diplomatically in recent months over the 5G ban, China’s growing drive to increase its influence in the Pacific and the expulsion of a Chinese billionaire who donated to local political parties.
Reserve Bank of Australia Governor Philip Lowe yesterday said that it would be “concerning” if the diplomatic spats were spilling into the trading arena, but added that it would be prudent to “wait and see” what the motivations were behind the Chinese actions.
Lowe, echoing analysts, said it was also important to note that the current amount of coal reportedly blocked by Dalian was small.
Chinese Ministry of Foreign Affairs spokesman Geng Shuang (耿爽) said that China’s Australian coal imports continue as normal, but added that the customs administration has stepped up environment and safety checks on foreign cargoes.
Geng said during a press briefing that reports that Dalian has banned Australia coal imports was not true.
Coal shipped from Australia to Dalian Ports accounts for about 10 percent of Australia’s exports of the commodity to China, and only 2 percent of overall exports.
Additional reporting by Reuters
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