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China-Australia relations
EconomyGlobal Economy

China-Australia relations: Canberra ‘keeping the door open’ as questions swirl over coal import ban

  • Canberra has used a less antagonistic tone with Beijing over a new ban on Australian coal, former diplomats and China watchers say
  • Relations have nosedived after Canberra called for an investigation into the origins of the coronavirus without first consulting Beijing

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China has curbed shipments of Australian coal, sparking concern about fraying ties between Beijing and Canberra. Photo: Bloomberg
Su-Lin Tan

Canberra’s response to China’s ban on Australian coal exports has hinted at more conciliatory engagement with Beijing, but former diplomats and analysts said it was too early to tell if tensions have eased.

Chinese steel mills and state-owned utilities revealed at the weekend that Beijing had verbally ordered them to stop buying Australian coking and thermal coal, sparking concern about a new dispute in an increasingly testy diplomatic relationship.

Relations have nosedived since Canberra called in April for an investigation into the origins of the coronavirus without first consulting Beijing.

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Australian trade minister Simon Birmingham and Prime Minister Scott Morrison have played down the ban, saying there was no evidence it was politically motivated and restrictions on coal shipments into China were common, particularly when steel mills and utilities have exhausted domestic quotas.

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“We have concerns about a number of decisions that have been taken during the course of this year,” Birmingham said on Tuesday. “But China remains an important trading relationship, an important regional partner, and the Australian Government continues to believe that our produce across a range of different categories provides for a mutually beneficial trading relationship.”

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