China-Australia relations: Beijing’s new wool import quota no ‘real improvement’ in trade ties with Canberra
- Beijing set its 2022 import quota for Australian wool at 40,203 tonnes, up from 38,288 tonnes a year earlier
- Although positive, it is unlikely to indicate a turnaround in the frayed relationship between the two countries
Beijing’s decision to raise the import quota for Australian wool next year does not signify a thaw in relations between the two countries, only that China relies on the fibre too much to let it become the “victim of trade tension”.
Beijing set its 2022 import quota for Australian wool at 40,203 tonnes, up from 38,288 tonnes a year earlier, according to a statement from the Ministry of Commerce on Wednesday.
China relies on Australian wool too much. So it would not let wool be the victim of trade tension anyway
Although a positive sign, the move does not necessarily indicate a turnaround in the frayed relationship between the two countries, as the broader significance is undermined by China’s reliance on Australian wool, an agriculture analyst in China said on condition of anonymity.
“China relies on Australian wool too much,” the analyst said. “So it would not let wool be the victim of trade tension anyway.”
Beijing’s move is also in line with commitments under the China-Australia Free Trade Agreement. The deal, which came into effect in December 2015, included a clause that China would raise the duty-free, wool-import quota for Australia by 5 per cent each year, until it reaches 44,324 tonnes in 2024.
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