Australia reassures investors over coal ban at Chinese port
- Canberra asks ambassador to China to seek urgent clarification about the ban, which may not be related to relations between the countries
Australia sought to calm investors on Friday about the state of its ties with China after a ban on coal imports at the northern port of Dalian, as coal stocks fell and the local dollar remained under pressure.
The Australian currency dropped more than 1 per cent to a 10-day low of US$0.7070 on Thursday after Reuters reported that customs at the Chinese port had banned imports of Australia’s biggest export earner since the start of February.
China is the largest buyer of Australian coal, taking 89 million tonnes last year, worth A$15 billion (US$10.7 billion), according to data from the Australian Bureau of Statistics.
Ties between the two countries were strained in 2017 when Canberra accused Beijing of meddling in its domestic affairs, and the relationship suffered another setback last year when Australia banned China’s Huawei from its 5G broadband network.
Australia had asked its ambassador to China, Jan Adams, to seek urgent clarification, the government said, while lawmakers and the central bank said the port move may not be related to relations between the countries.
“I wouldn’t jump yet to the conclusion that this is something directed to Australia,” Reserve Bank of Australia governor Philip Lowe told a parliamentary economics committee.
