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China’s squeeze on Australian coal nothing to do with Huawei’s 5G ban. Really?

  • Beijing and Canberra have been at pains to deny that politics is behind the delays that have hit Australian coal imports. To sceptics, it’s a case of protesting too much

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A coal ship waits to be loaded at the world's biggest coal export terminal in Newcastle, Australia. Photo: Reuters
With all eyes on whether Beijing will cede ground to Donald Trump in the ongoing US-China trade war, it is easy to forget there may be another trade skirmish occupying Beijing’s mind – and one in which, this time, China holds most of the aces.
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Over the past month China has been targeting Australian coal imports with increased restrictions – what Beijing claims are quality checks – that have delayed their passage through northern ports. Given Australia’s coal industry is deeply dependent on its exports to China, which account for 3.7 per cent of Australia’s GDP, this has prompted much media speculation that Beijing is punishing coal companies as retribution for political acts by Canberra, one of Washington’s closest allies.

Beijing is thought to be smarting over various issues: Australia’s blocking of the Chinese telecoms firm Huawei from building its national 5G network; accusations that China has been involved in spying on its parliament; and the denial of Australian citizenship to billionaire political donor Huang Xiangmo.
Ports in Dalian, where Australian coal imports have been delayed. Photo: Handout
Ports in Dalian, where Australian coal imports have been delayed. Photo: Handout

Officials in both countries have tried to quash such speculation. Last week, China’s foreign ministry said there were no bans on Australian coal imports via ports in the north-east region of Dalian but admitted there had been quality checks on some shipments. Australia’s Trade and Investment Minister Simon Birmingham, meanwhile, conceded there had been delays in clearing Australian coal through northern ports, but rejected the notion these delays were politically motivated.

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