China bans Australian coal imports: report

China has blacklisted Australian coal, according to state media, in a new crushing blow in the escalating trade war.

The Morrison government is now urging the Chinese authorities to immediately scrap the coal import ban.

Chinese state media reported on Sunday that Australia had been “excluded” from a new coal policy giving power plants approval to import coal without customs restrictions from all countries except our own.

Exports were reportedly blacklisted at a high-level meeting between the Reform and National Development Commission and Chinese power companies on Saturday.

The Global Times reported that the new policy was designed to stabilize coal prices.

The government spokesman also published an op-ed that criticized Australia as an “anti-China pioneer” with a “sense of anxiety” about being invaded.

“Due to its high degree of reliance on the United States for security and growing concern over China’s rise in the region, Canberra is very concerned that Washington’s strategic contraction will compound the risks of being dumped by Uncle Sam.” , the opinion piece read.

More than 50 vessels containing hundreds of millions of dollars worth of Australian coal were docked in Chinese ports last month as trade tensions between the two partners continued.

This followed Chinese officials in October issuing verbal warnings to companies to stop buying thermal coal from Australia.

“I urge the Chinese authorities to immediately dismiss these reports of what, if accurate, would appear to be the use of discriminatory practices against Australian coal,” said Commerce Minister Simon Birmingham.

“It is certainly unacceptable to see a circumstance where governments and companies find out about the decisions of other companies or other governments, simply through the media.

“We reiterate that all the terms of our free trade agreement and global trade obligations between Australia and China must be respected.”

Senator Birmingham said officials had raised concerns with their Chinese counterparts and through the World Trade Organization, where Australia is also considering challenging tariffs on barley and wine.

“We remain ready to enter into a dialogue to solve these problems together,” he said.

Australian coal exports to China were worth A $ 14 billion ($ 14.8 billion) in 2019 and the product is 1.5 times more efficient than most other competitors.

Senator Birmingham said that although China was an important market for coal, Japan, India and Vietnam were also important.

China’s main coal importers are Australia, Indonesia, Russia and Mongolia.

But the Global Times wrote that Mongolia and domestic producers could get a large chunk of Australian coal.

The director of the Institute of Energy Economics of the Chinese Academy of Social Sciences, Wang Yongzhong, was quoted as saying that Mongolia had a geographical advantage that allowed lower transportation costs than other exporters.

“The relationship between China and Australia has been deteriorating and Australia is gradually losing the Chinese market,” Wang said in the article.

“Even the United States and Canada could be sources of import, although they are the last options, since transport costs would be very high.

“China planned to reduce 100 million tons of coal consumption annually by 2030 to finally achieve its carbon neutral target by 2060, which means a decrease in demand in the coal market.

“The absence of Australian coal in China is really beneficial for all the other suppliers on the market.”

But Scott Morrison said sourcing coal from other countries would be a bad outcome for the environment and could harm the communist nation’s ability to cut carbon emissions, as well as the Australia-China trade relationship.

“It really is a lose-lose here,” the prime minister said.

“Other countries have 50 percent more emissions than Australian coal.”

Morrison said there would be opportunities to have a direct conversation about trade issues with Chinese President Xi Jinping over the next year.

“I hope it happens sooner, but there are no barriers to that happening on the Australian side,” he said.

He said the development is likely to create a lot of uncertainty for many other trading partners as well.

The move is yet another blow to the strained relationship between Australia and its largest trading partner.

Last week, China slapped a sixth Australian meat exporter with trade restrictions, in addition to sanctions imposed on products in various industries, such as wine, seafood and barley.

Senator Birmingham confirmed that China appeared to be using regulatory mechanisms to disrupt trade for a couple of years.

However, he confirmed that Australia wanted to continue working with the superpower in the future.

Labor agriculture spokesman Ed Husic said the government needed an action plan.

“There are a lot of jobs and a lot of money at stake,” he said.

“This is not a trade issue, it is diplomatic, and our coal mining communities should not be affected as a result.

“We need to see definitive plans from the government on how to solve this.”

Former opposition leader Bill Shorten told Today that he hoped the Morrison government would appeal to the World Trade Organization.

He said Australia should try to improve relations with China, but should also diversify its markets.

“One thing we can do is buy a little more of Australia this Christmas when we’re in the shopping aisles, from wine to seafood,” Shorten said.