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Australia and China trade relationship tight, Australia's loss is how big?

Source: xkb.com.au
[Current News]     29 Oct 2020
The latest analysis shows that China's expanding trade action against Australia has affected Australia's exports worth as much as A $19 billion a year and that more industries may face losses in the future. Some people call on Australia government to seek to restart Australia-China relationship, to avoid further economic losses.
Australia and China trade relationship tight, Australia's loss is how big?

Australia's exports to China have been greatly affected by the tense relationship, between the two countries. (Guardian Photo)

The latest analysis shows that China's expanding trade action against Australia has affected Australia's exports worth as much as A $19 billion a year and that more industries may face losses in the future. Some people call on Australia government to seek to restart Australia-China relationship, to avoid further economic losses.

Australia's barley, beef, cotton, coal and wine bear the brunt, the Guardian said. If China warns its citizens not to travel to Australia on the grounds that the risk of racist attacks in Australia is rising, the recovery from the epidemic of tourism and study abroad in Australia will be hit, putting Australia's service exports at an additional $28 billion.

Labour agriculture and resources speaker fagibang (Joel Fitzgibbon) said :" before (prime minister) morrison (Scott Morrison) admitted his mistakes, swallow his pride, and invest appropriate experience to repair the relationship with our biggest trading partners, how much harm will our economic bear? "

Although the costs of a trade war are difficult to quantify, research by the University of Western Australia's Perth-Mea Center (Perth USAsia Centre) shows that seven industries affected by open or undisclosed sanctions exported to China, with a total export value of A $47.7 billion last year.

These include $19.3 billion in merchandise exports ,$12.1 billion in education services exports and $16.3 billion in tourism services. But given that the new crown has led countries to close their borders, the latter two are not affected by a trade war.

Experts warn that while certain industries, such as coal and beef, have been affected and trade has fallen, not to zero. Australian beef slaughterhouse, hit by a technical import licensing ban, are seeking to reverse the ban to resume trade, while exports of other meat slaughterhouse continue.

Certain products, including barley, which is now subject to a protective tariff of 80 per cent imposed by China, are expected to be sold to other markets in the world in the future, but may be priced.

Australia and China trade relationship tight, Australia's loss is how big?

The Australian trade minister Birmingham has repeatedly expressed its hope for a minister level dialogue with China. (Guardian Photo)

Farmers fear broader chaos


According to the National union of Farmers (NFF), farmers "continue to fear substantial and propaganda interference with China's agricultural exports, including barley, beef, alcohol and, most recently, cotton. "

It is reported that China accounts for 28% of Australia's annual export of agricultural products.

NFF Chief Executive Officer Mahal (Tony Mahar) said that "sustainable and positive development of the Australian and Chinese relationship is essential on the basis of reciprocity and respect ". He called on the government to continue to engage with the Chinese side through relevant minister, to seek dialogue.

The Federal Trade minister Birmingham (Simon Birmingham) reiterated to the Guardian late Tuesday that Australia continues to "open the door and China continues to respect each other at minister levels of dialogue ," adding that Australia believes in" mutual respect among nations sovereignty 、 and encourages partners where possible relationship .".(Agencies

Australia's prime minister, morrison, has repeatedly said before birmingham that australia will uphold its values and not yield to economic pressure.

Earlier this year, australia also spearheaded a call for an international investigation into the origins and handling of Coronavirus, which china angry at and viewed as political action against china.

Australia's engage in bilateral talks with China on trade measures have failed, according to Jeffrey Wilson Wilson, research director at the Perth-Mea Center. Birmingham has been been hoping to communicate with China's trade minister since May, it has failed.

According to Wilson, a credible option for Australia is to adjudicate trade disputes through the World Trade Organization (WTO) independently.

"Australia has a good chance of winning in barley, cotton and coal ," he said. "

While some commentators have argued that Australia should somehow "de-escalate" Australia and China relationship, Wilson believes that this is not politically realistic because there are many "elements of tension that can not disappear as desired ".

He also said Australia should not compromise at the diplomatic level for short-term trade interests.

Australia and China trade relationship tight, Australia's loss is how big?

Abenzhi senator Tazhou is referred to as "McCarthy-style operation ". (Guardian Photo)

Trade war, Australia and China are losers

Labour's trade speaker, Madeleine King, called on Australia's government "to seek advice from Australian mining and farming companies and executives with deep business ties with China. "

She also believes that government "should hold a forum to hear the views of business leaders who pay serious attention to the relationship of Australia and China. "

"This will provide government with practical advice and show everyone the importance we attach to trade relationship ." with China

King also called on government to "be more careful" when communicating with China ," stop the McCarthy operation councillor the back seat ". She also noted in particular the recent public hearings by senator abengzhi (Eric Abez) in tazhou, asking three australian chinese to condemn china unconditionally.

"Every opportunity should be taken by the Prime Minister and senior minister to stress that both the Australian and Chinese people will be the losers from the decline in trade ," she said. "

Australia and China trade relationship tight, Australia's loss is how big?

In the first nine months of this year, Australian coal exports to China actually increased by 14% year on year. (Guardian Photo)

Australia's coal export outlook is uncertain

Australian government are still trying to clarify the impact of coal and cotton exports.

Earlier this month, BHP Billiton (BHP) revealed that some Chinese customers had recently delayed coal purchases, but the company speaker not specify the extent of the impact.

China reportedly contacted its utilities and industrial buyers in early authorities 8 to demand an immediate halt to imports of Australian coal.

Mr. clark (Jo Clarke), Argus by the global raw materials and energy price reporting agency, said the chinese had given verbal notice that his colleagues had seen ships loaded with australian coal queue up to enter chinese ports and suddenly set out and headed for other destinations.

Clark said China's coal is an informal quota system that limits the amount of coal imported each year to about 270 million to 290 million tons. After the collapse in coal prices in 2016 threat the survival of local coal mines in China, the policy began.

This means that if China's coal imports have reached the quota limit, imports will be suspended before the end of the year.

As some other chinese suppliers cut back on their exports and some other target markets in australia, such as japan, south korea and chinese TW, stopped importing large quantities of coal, clark said, australia actually exported more coal to china in the first nine months of the year than in the same period last year.

Australia exported nearly 75 million tons of coal to china between january and september, up 14% from the same period last year, according to Argus compiled data.

She thinks that when China sometimes says it no longer needs Australian coal, it is because the quota has been filled. What really matters is what happens next year. China isn't sure if it will adjust its quota system because of relationship tensions in Australia and China, or start redistributing quotas.

At the same time, iron ore, another important Australian export —— does not appear to have been affected by trade tensions.

Mr. Clark said there was no news that China would stop importing Australian iron ore. But she also warned that China was looking for other options that could be supplied in the long term, such as Guinea.

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