China blocks coal imports from Australia
- 25 December 2020
- 564
World’s biggest coal exporter is forced to suspend its supplies indefinitely
After several months of unclear restrictions, the National Development and Reform Commission of the People’s Republic of China has officially announced that imports of Australian coal will be blocked for an indefinite period.
Australia, world’s biggest coal exporter, lost its second largest market: China accounted for 21% of Australian coal exports in 2019, whilst Japan was at 27% and India accounted for 16% of total exports.
As stated by The Sydney Morning Herald, China, on the other hand, is expanding its local coal production, as well as plans to increase imports from Russia, Mongolia and Indonesia.
The New York Times argues that China’s trade war motives come from Australia’s blunt intentions to investigate the source of the coronavirus in China, as the result of which new trade bans and restrictions arise. Last month China imposed 200% import tax on Australian wine.
