An Australian coal flotilla trapped off the coast of China is carrying $1.1billion in blacklisted cargo as fears grow the Asian superpower is deliberately blocking the export of the lucrative commodity.
Australian coal exports to China have dropped 96 per cent in the first three weeks of November as 82 ships laden with 8.8million tonnes of coal are left floating off Chinese ports.
The number of stranded vessels has quadrupled in the past two weeks, prompting Morrison government officials to openly question whether China is deliberately discriminating against Australian exports.
Coal earns Australia more than $53billion each year and is the country’s second biggest export after iron ore.
An Australian coal flotilla trapped off the coast of China has swelled to 82 ships and is carrying $1.1billion in blacklisted cargo. Pictured file image of tankers waiting to unload cargo
Last year, Australian miners shipped $10billion of metallurgic coal and $7billion of thermal coal to China.
One Nation leader Pauline Hanson said the delays were the latest in ‘China’s recent spate of economic attacks’ designed to ‘inflict maximum damage’.
‘For decades I have warned that our nation’s overexposure to the whims of a hostile, authoritarian, communist Chinese Government was leaving us vulnerable to this exact type of danger,’ she said.
The trade blockage comes as Beijing continues to ramp up economic threats against Australia after Prime Minister Scott Morrison called for an inquiry into China’s role in sparking the coronavirus pandemic earlier this year.
While five million tonnes of Australian coal were expected to be shipped to China this month, that figure has dropped to 190,000 for the first three weeks of November, The Australian reported.
China has claimed the hold-up is due to authorities conducting environmental checks.
But Trade Minister Simon Birmingham has rejected the idea Australian coal could be a biohazard, saying it would pass ‘any credible testing regime’.
Coal exports to China from Australia have dropped 96 per cent in the first three weeks of November amid reports the Asian superpower is blocking exports of the valuable commodity Pictured: Water is sprayed over piles of coal at the Port of Newcastle in Newcastle, New South Wales
‘We are working closely with the industry as well as seeking assurances and clarity from Chinese authorities that this is not discriminatory action against Australian coal,’ he said.
The bulk freighters are estimated to have more than 1,500 sailors stranded on board.
The hold-up follows Mr Morrison attempting to take a softer tone with the authoritarian regime in the hopes of soothing the bitter feud.
The blockage is latest escalation of trade tension between the two countries (pictured, port in Nanjing China)
Just weeks ago the Communist Party informally ordered Chinese companies to stop buying a number of key Australian exports including barley, sugar, red wine, timber, lobster and copper.
Mr Morrison said the government would work through the trade issues one at a time, but Australia would not bow to pressure or cede its sovereignty.
‘We just work the process through with the Chinese government to get the best possible outcome that we can,’ he told the Nine network.
The bulk freighters have been there for over a month with more than 1000 sailors on board stranded (pictured, a pile of coal at the port of Newcastle)
‘These are not easy issues … it’s incredibly complicated what we’re dealing with here.’
The prime minister said skilled trade negotiators were working to resolve the disputes.
‘That’s not simple, but simple things are not the only issues with deal with as a government,’ Mr Morrison said.
‘We deal with very complicated and difficult issues, which this is one of, but we are very keen to ensure we get the best outcome for Australia and in the interests of our relationship.’
Scott Morrison (pictured right) attempted to take a softer tone with the authoritarian regime in the hopes of soothing the bitter feud (pictured left, Chinese President Xi Jinping)
Coal is Australia’s second most valuable resource behind iron ore, and last year miners shipped $10billion of metallurgic coal and $7billion of thermal coal to China (pictured, a coal bucket wheel reclaimer at the port of Newcastle)
Beijing has tried to justify their blatant attempts of economic coercion by designating many of the blocked commodities as ‘biohazards’ – a claim vehemently denied by Australian exporters.
After years of simmering tensions, Scott Morrison took a much softer tone in a speech this week.
‘We are not and have never been in the economic containment camp on China,’ the Prime Minister said to the UK think tank Policy Exchange.
‘No country has pulled more people out of poverty than China. We in Australia are pleased to have played our role in the economic emancipation of millions of Chinese through the development of their nation’s economy.
‘That is a good thing for the global economy. It is good for Australia. And, of course, good for the Chinese people.’
It seems the speech was viewed positively by Mr Zhao and Communist Party officials.
China has enacted a freeze on all Australian thermal and coking coal shipments (pictured, an Australian mine worker at Central Queensland’s Caval Ridge coal mine)
China’s Foreign Ministry attributed the month-long delays at coal ports to ‘environmental checks’
‘China noticed Prime Minister Morrison’s positive comments on the global influence of China’s economic growth and China’s poverty alleviation efforts,’ he said.
Hostilities between Australia and China have soared in recent years after a number of diplomatic spats.
The banning of Huawei from the nation’s 5G network in 2018 on the grounds of national security concerns infuriated the totalitarian state, but it was Mr Morrison’s call for an independent international inquiry in the origins of the coronavirus back in April which prompted a drastic response from Beijing.
China immediately slapped an 80 per cent tariff on Australian barley, suspended beef imports and told students and tourists not to travel Down Under.
Scott Morrison (pictured shaking hands with Chinese President Xi Jinping) said Australia’s actions are ‘wrongly’ being interpreted by Beijing through the ‘lens of the strategic competition between China and the US’
Beijing again responded with fury and outrage last week when Mr Morrison set off to Japan – one of China’s greatest historic rivals – to strengthen trade and military ties.
As payback Chinese companies were told to boycott Australian exports including barley, sugar, red wine, logs, lobster, copper – and coal.
Tensions have also spiked over allegations of widespread state-sponsored cyber attacks by China, and after ASIO raided the homes of Chinese journalists suspected of political interference.
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