China-Australia relations: Beijing raises wool import quota, but move not seen as sign of warming ties
- Chinese buyers led the way in purchases of Australian wool at recent auctions
- There had been concerns that exports of wool could be dampened by the recent strong rise in the Australian dollar
Undeterred by the strong Australian dollar, Chinese buyers are snapping up Australian wool after Beijing lifted this year’s wool import quota – a rare positive sign amid frayed relations between the two countries.
In the year’s first Australian wool auctions, held last week, China textile makers and wool processors led the way in purchases despite a strengthening Australian currency, according to wool-supply-chain research group Australian Wool Innovation (AWI).
On November 1, the conversion rate was roughly 4.7 yuan to the Australian dollar, and the rate has gradually increased to 5 yuan, meaning purchases valued in Australian dollars require more yuan.
Whilst it is good to see China sticking to their agreement, this should not be misconstrued as a thawing of our relationship
There had been concerns that exports of wool could be dampened by the Australian dollar’s strong rise, with Australian goods being more expensive for foreign buyers, but there were no signs of weaker demand in the lead-up to last week’s auctions, AWI said in a note.