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Opinion | As Beijing ups the ante, hopes for improved Australia-China relations dashed
- China’s moves against Australian coal and cotton imports come after a meeting of the Quad, which includes Japan, Australia, India and the US
- The trade reprisals appear to convey Beijing’s displeasure that a regional united front appears to be forming to contain its ambitions
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Speculation that China may be seeking to lower the temperature in its fractious dealings with Australia appears to be premature. This follows confirmation that Chinese customers have been advised to defer orders of Australian thermal and metallurgical coal.
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On top of this, Australian cotton exporters have been advised exports will be cut next year, a blow to a business worth about A$2 billion (US$1.4 billion) annually.
Australian mining giant BHP has received “deferment requests” for its coal shipments, according to the company’s chairman, Ken MacKenzie.
On the face of it, this is the most damaging trade reprisal by Beijing against what it perceives to be Australia’s hostile attitudes to it in tandem with its security partner, the United States.
It seems more than coincidental that just days after Australia took part in a meeting in Tokyo of the Quad (previously known as the Quadrilateral Strategic Dialogue and involving Japan, Australia, India and the US), China took such action.
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To put this in perspective, China has targeted Australia’s third-largest export commodity to the Chinese market behind natural gas and iron ore.
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