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Above is The Sydney Morning Herald (SMH) commentary posted on November 30.
According to SMH, US President Donald Trump’s trade war may have caused damage to China. However, American businesses and consumers themselves are affected by higher prices for goods. Therefore, SMH believes that China’s ban on Australian products will have the same effect.
Australia is one of the main trading partners of China because it is considered reliable, has high quality products and competitive prices. Take coking coal, for example. Australia currently supplies about half of the metallurgical coal to Chinese mills. Although China has a huge domestic coal industry, its steel mills still need high-quality Australian-made coal.
Australia currently supplies about half of the metallurgical coal to Chinese mills. Photo: SMH
Since Beijing first approved the Canberra coal ban, around 7 million tons of coal with an estimated value of $ 700 million have been stranded and awaiting unloading at Chinese ports. The price of Australian export coke has fallen to around USD 100 / tonne, the lowest level in 4 years and almost 30% lower than the price of 2 months ago.
China says restrictions on coal imports from Australia are due to the fact that many Australian producers “do not meet environmental standards.” Apparently this ban is hurting Australia. But the Chinese side was also significantly affected when the price of domestic coal rose, doubling the price of imported coal, while China imported American and Canadian coke to replace Australia with the price rising.
As a result, Chinese mills pay more for lower-quality coal, leading to lower productivity, more environmentally hazardous emissions and lower-quality products. .
SMH said that to punish Australia, China is hurting the competitiveness of the domestic steel industry by giving competitors access to higher quality raw materials at lower prices, complying with Japanese, Korean and Indian Environmental Standards.
Another example is that China imposes a high tax on Australian wines due to “dumping”. Australia is China’s largest wine exporter. A 169.3% tax on Australian wines, even up to 200%, will make them less popular on the mainland market, thus reducing the options available to Chinese consumers.
China imposes a high tax on Australian wines due to “dumping”. Photo: SMH
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