China-Australia relations: status of coal deliveries in question following diverted-ship report
- Commerce ministry spokeswoman says coal trade boils down to ‘business-centric behaviour’, impacted by needs of Chinese companies and market conditions
- Comments come after a cargo ship was said to have been rerouted to Vietnam after failing to unload in China, but other ships are said to have already delivered coal
Coal purchases by Chinese companies are made at their own discretion, based on the market situation, China’s Ministry of Commerce said on Thursday as recent shipments of the commodity have been thrust back into the spotlight, testing relations with Australia.
“The import of coal in China is an automatic licensing management,” added ministry spokeswoman Shu Jueting at a regular press conference in Beijing. “Companies will make decisions based on production needs, technological changes and market conditions. It’s business-centric behaviour.”
Shu’s comments came amid reports that at least one ship carrying China-bound Australian coal was diverted due to uncertainties about China’s customs policies. Reuters cited industry data showing that the BBC Maryland, loaded with about 12,000 tonnes of thermal coal from Australia’s Newcastle terminal, was headed to Vietnam on Thursday after waiting five days without unloading at the eastern Chinese port of Changshu, in Jiangsu province.
‘Surge’ in Australian coal inquiries amid reports China set to end import ban
Meanwhile, data by S&P Global’s Commodities at Sea analysis showed that nine additional ships had loaded coal at Australian coal ports this month and were currently heading towards China.
Furthermore, according to the intelligence provider, three of the ships that sailed in January have managed to partially or fully discharge their coal at Chinese ports.
Shu at the Commerce Ministry said that “trade between China and Australia has been developing in a normal way”.
“Trade in goods between both countries reached US$220 billion in 2022, which is huge,” she continued. “Both sides can always communicate to find win-win resolutions. China remains committed to defending the interests of our companies, and we hope that Australia can provide a level-playing business environment.”
Australian and Chinese officials will meet in the coming days to discuss a relaxation of trade restrictions, which could pave the way for a visit by Australian trade minister Don Farrell to Beijing in the coming months, according to a Bloomberg report.
Farrell said that the “orders would be coming through” for Australian timber products, in addition to coal shipments that have already restarted.
He said he was also told that Australia’s Bulla Dairy Foods had received its first Chinese order in a couple of years, and he was hopeful for a relaxation of China’s high tariffs on Australian wine.
