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Australia’s worry has happened! China ordered the cessation of purchases of seven commodities including coal, barley, copper ore, wine and lobster!

2020-11-09

The relationship between China and Australia continues to cool. According to Bloomberg News, citing people familiar with the matter, China has so far ordered buyers to stop purchasing at least seven categories of Australian commodities, including coal, barley, copper ore and copper concentrate, sugar, and wood. , Wine and lobster.

For Australia, this is tantamount to being hit seven times in a row.

1. The customs clearance of lobster in China is delayed. Australian shrimp farmers: we are nervous

According to the “Sydney Morning Herald” a few days ago, several tons of alive Australian lobsters are stranded on the tarmac of a Chinese airport, facing a delay in customs clearance. If they are refused entry by China or delayed for more than 48 hours (exceeding this time, Expensive crustaceans will be difficult to survive), and the message will be sent: this is “another blow” to China’s exports to Australia under the tension of Sino-Australian relations.

On the other hand, the anxiety among the Australian lobster industry spread rapidly in just two days. As the fishing season is approaching two weeks later, shrimp farmers in Tasmania, Australia are also beginning to worry. “It makes us nervous.”

Since the new crown epidemic this year, Victoria’s lobster exports have been hit hard, and China is an important market they cannot lose. Knoll said that if the lobster trade between Australia and China “collapse”, Victorian lobster catchers may not be able to continue working.

After the news of the delay in customs clearance came out, Knoll began to call on Victorian consumers to support the local shrimp farmers and lobster industry and actively buy seafood products out of their pockets.

In recent years, the Australian lobster industry has relied heavily on the Chinese market. In 2018, the output value of Australian lobster exports was 752 million Australian dollars (about 3.52 billion yuan), of which 94% were exported to the Chinese market. By 2019, this proportion rose to more than 95%. .

In other words, it is almost the Chinese market that feeds the Australian lobster industry.

The former commander of the Australian Defence Force Houston once again emphasized the importance of China in an interview with Australian media. He pointed out, “If we want to truly get out of the economic recession caused by the epidemic, we must need China.”

Australian Trade Minister Birmingham said that he has already understood the issue and said that “all importers should abide by the same standards and there should be no discriminatory screening practices” and “Chinese authorities should rule out any discriminatory behavior.”

Cocentino, CEO of Southern Lobster Co., Ltd., said that due to China’s higher inspection standards for imported products, some Australian lobster products have been delayed in customs clearance. He said that there are not many existing details, but that the tests conducted in China are related to the new health inspections.

Chinese Ministry of Foreign Affairs spokesman Wang Wenbin said that China Customs implements inspection and quarantine on imported seafood at the import port according to law, and releases them after they are qualified. This is not only to implement the requirements of relevant national laws and regulations, but also to ensure the food safety of Chinese imported consumers.

We always believe that a healthy and stable China-Australia relationship is in the fundamental interests of the two peoples. At the same time, mutual respect is the basis and guarantee for pragmatic cooperation between countries. It is hoped that the Australian side will do more things that are conducive to mutual trust and cooperation between China and Australia and are in line with the spirit of the China-Australia comprehensive strategic partnership, so as to bring China-Australia relations back on track as soon as possible.

2. China stops importing seven types of products including Australian coal

Since this year, China has taken a series of actions against Australian exporters, including imposing prohibitive tariffs on barley, suspending imports of products from five meat processing plants, and launching anti-dumping and countervailing investigations on Australian wine.

“China has ordered the cessation of imports of 7 categories of Australian commodities”, this news has been circulated in Western media recently. Bloomberg said that these seven categories of commodities, including coal, barley, copper ore and copper concentrates, sugar, timber, red wine and lobster, are the most extensive actions by China against Australian commodities so far. Australian media said that the effective date of the ban is November 6.

Earlier, the Australian Minister of Agriculture stated that due to the tensions between China and Australia, China has strengthened trade restrictions on Australia and suspended some imports of timber and barley. Agriculture Minister David Littleproud said: “We will cooperate with the Chinese authorities to investigate and resolve these issues.”

The following are some of the trade commodities that will be significantly affected.

01  Coal
Earlier, the Australian Daily Telegraph stated that China has officially announced that it will stop importing ore, coal, steel and many other resources from Australia, and has shifted its import indicators to Western countries.

Since the beginning of this year, the Australian government has been unfriendly to China, not only on the issue of the epidemic, but also on the economic and trade exchanges and the South China Sea issue. It is reported that Australia’s GDP mainly depends on energy exports, and the coal industry accounts for 45% of the Australian economy, and part of it is natural gas resources.

The Mongolian General Administration of Customs provided a data showing that its coal exports increased by 17% to 4.65 million tons, and 96% of the coal was sent to China.

The media pointed out that Mongolia has become China’s largest supplier of metallurgical coal. Australia’s worries become reality, and China no longer needs Australian coal. Compared with the development trend of Mongolia’s coal industry, Australia’s coal exports have been declining. In September, Australia’s coal exports were reduced to 2.72 million tons.

02  Wine
In terms of high-end wines, China is Australia’s largest buyer. According to data from the Australian Wine Association, an industry organization, China’s expenditure in the year ended September this year was close to 1.2 billion Australian dollars (830 million US dollars). US exports are 2.5 times.

Since China announced two trade surveys of Australian wines earlier this year, the industry has faced difficulties in its largest market. After the news came out, the share price of Australian wine producer Treasury Wine Estates Ltd. fell at most 3%, the biggest drop since September last year.

03  Copper
On the other side, the copper market also highlights the mismatch in trade between the two countries. Last year, about 55% of Australia’s copper mine exports went to China. But Australia only accounts for 5% of China’s demand, which means that Chinese smelters should not be too problematic in finding alternatives.

After the news came out, the shares of Australian copper producer Sandfire Resources Ltd. fell 9%, but the company said it was confident of finding other customers if needed.

04  Timber
Because the bark beetle pests were detected from the timber purchased from Australia, the General Administration of Customs of China issued an announcement on October 30 to prohibit the purchase of all logs originating in Australia.

According to reports, the various pests contained in these imported wood from Australia, once they enter China, will pose a serious threat to my country’s forestry production and ecological security.

05  Barley
According to Reuters, after China announced in May this year that it would impose a total of 80.5% of anti-dumping duties and countervailing duties on Australian barley, last week, Australian government sources revealed that China has rejected the Australian government’s application for review.

It is reported that in August this year, the Australian agricultural department filed a complaint with China, asking China to review the procedures for adjudicating “dual reverse” tariffs, but China recently rejected Australia’s request. An Australian source said: “We were told last week that the review application failed. We are very disappointed.”

It is worth mentioning that China is an important consumer market for Australian barley. According to official data from Australia, about 70% of Australia’s barley is exported to China. In 2018, Australia once sold up to 1.5 billion Australian dollars (about 7.05 billion yuan) of barley to China. Regarding the measures taken by China, Mahal, chairman of the Australian National Farmers Federation, said that this would be a “major destructive blow” to Australian agriculture.

3. Listen to what these Australian officials say

Just as some foreign media hyped China to “crack” Australian imports, former Australian ambassador to China Rui Jierui recently stated in an interview with the British “Guardian” that Australia’s economic dependence on China will not change unless Australians are willing to accept it. The decline in living standards.

He bluntly said that Australia’s desire to focus on markets other than China is purely “wishful thinking.”

Although the Australian government has always claimed that it is pursuing its own policies, it has not done anything “harmful to important Sino-Australian relations.” But Rui Jierui believes that in fact, Australia has been side by side with the United States in the past few years to prevent China from rising. This practice is against Australia’s interests.

The Guardian also gave Australia a rough calculation. Recently, various Australian industries that have been affected by Sino-Australian relations, including coal mines, lobster, timber, etc., may add up to tens of billions of dollars.

Former Australian Prime Minister John Howard said that the economic relationship between Australia and China is very important. This relationship sometimes becomes tense and must be resolved. Australia should not abandon its cooperative relationship with China in any way. This is very important to Australia.

Former Australian Defense Minister Fitzgibbon chanted, “What we need to do now is to get China-Australia relations back on track.”


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