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Mia Nulimaimaiti

Ralph Jennings

Australia surpassed Russia as China’s largest supplier of coal at the start of the year as bilateral relations continued to improve between Beijing and Canberra.
China’s imports increased by 3,188 per cent year on year to US$1.34 billion in January and February, according to Chinese customs data released on Wednesday, with shipments having stood at zero in January 2023.
Overall, Australian shipments made up 24 per cent of China’s total coal imports in the first two months of the year, up from 0.9 per cent a year earlier.
But Russia’s share fell from nearly half to 22 per cent during the same period, as shipments from its northern neighbour fell by 41 per cent to US$1.25 billion.


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Relations between China and Australia deteriorated in 2020 when Canberra called for an investigation into the origins of the coronavirus.
But ties have since slowly improved, and Australian Prime Minister Anthony Albanese visited China in November.
And during his first visit to Australia in seven years this week, Minister of Foreign Affairs Wang Yi said that the two countries should deepen cooperation on all fronts amid ongoing differences over strategic and security issues.
Exports of Australian coal, cotton and barley, which were previously under official or unofficial bans, have gradually resumed since last year.




“China and Australia both want to ensure the opening of markets now,” said Wang Yong, a professor at the School of International Studies at Peking University in Beijing.
Australia was once the leading supplier of coal to China, accounting for nearly 60 per cent of its total imports in 2019.
But by 2022, Australia’s market share had dropped to 1.5 per cent, with Russia becoming the top supplier with a 40 per cent share.
Beijing, though, lifted restrictions and resumed coal imports in February last year, and the share of Australian shipments has risen rapidly to 18 per cent.
Businesses may strategically opt for Australian coal to mitigate potential repercussions from Western countries’ sanctions against Russia
Alberto Vettoretti, Dezan Shira & Associates
“Russian coal exports to China primarily rely on railway transportation, which has inherent limitations in capacity compared to sea transportation. Australia’s accessibility via maritime routes allows for larger shipments and smoother logistics,” said Alberto Vettoretti, a managing partner at business management consultancy firm Dezan Shira & Associates, who added Australian coal is often considered of a higher quality and as being more cost effective.
“Businesses may strategically opt for Australian coal to mitigate potential repercussions from Western countries’ sanctions against Russia.”
Purchases of Australian coal also enjoy zero import tariffs under the Regional Comprehensive Economic Partnership, as China and Australia are members of the Asia-Pacific trade pact.
China’s lithium battery shipments to Australia also soared by 90 per cent to 1.76 million units in the first two months of 2024 compared to a year earlier, topping US$95.8 million.
Indonesia, Thailand and Vietnam snap up share of China’s lobster trade
China’s electric vehicle (EV) exports by volume, though, fell by 9 per cent, with the value also falling by 17 per cent to US$350 million.
But Australia remained the third-largest EV buyer with 6.8 per cent of China’s total shipments by value.
“It’s likely that China will increase exports of hi-tech products like EVs, smartphones, and computers to Australia in the future, but it will be a slow burner,” added Vettoretti.
“Australia is going to keep this balanced, taking into consideration larger potential geopolitical concerns stemming from pressure from its allies and its own political agenda.”
Under the current situation, Australia may prioritise other issues, such as agriculture products exports.
Alberto Vettoretti
The European Union is growing increasingly concerned about an overcapacity of Chinese EVs imports, and launched an anti-subsidy investigation last year, while the US already bars EV battery materials from China as a “foreign entity of concern”.
“While we cannot dismiss the possibility that Australia may follow a similar path as the EU and US regarding EVs, several factors come into play,” Vettoretti added.
“First, Australia’s automotive industry is not as robust as that of the EU or the US. The relative size and influence of the Australian market could impact how urgently EV concerns are addressed by the Australian government.
“Under the current situation, Australia may prioritise other issues, such as agriculture products exports.”


China has also increased wine imports from Australia, with the share rebounding to 0.6 per cent in the first two months of the year, but still far from the 37 per cent seen in 2019.
Beijing imposed tariffs of up to 218 per cent on Australian wine in March 2021, although they are also expected to be removed amid the improving relations.
“There’s a massive wine glut [in Australia] at the premium end that even if Chinese markets open up, it’ll take a year or more for exporters to take advantage of it,” said Stuart Orr, a professor and the CEO at the College of Practice Professors in Melbourne.
Wang Yong expects more high-level engagement would lead to a further lifting of trade restriction, including Australian lobsters returning to the Chinese market.
Overall, China’s imports from Australia fell by 1 per cent in the first two months of 2024 year on year, while exports fell by 7.54 per cent to US$10.8 billion.

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China-Australia relations

China’s Australian coal imports surge, replacing Russia as top supplier, but hi-tech products to be ‘slow burner’

Australian shipments made up 24 per cent of China’s total coal imports in the first two months of the year, up from 0.9 per cent from a year earlier. Photo: Xinhua


Australia remained the third-largest buyer of China’s electric vehcles, with 6.8 per cent of total shipments by value in the first two months of the year. Photo: Bloomberg

China-Australia wine trade barriers seen falling as foreign minister Wang Yi confirms trip down under

Australian wine could return to Chinese shelves in the coming weeks as ties between Beijing and Canberra continue to warm. Photo: AFP

Chinese Foreign Minister Wang Yi will visit Australia and New Zealand next week. Photo: Reuters

China-Australia relations: winemakers up Hong Kong shipments ‘hoping the door will open’ as Beijing ponders lifting tariffs

China has been lifting trade barriers on other goods as relations improve and Australian officials and industry expect a review of the wine tariffs begun by Beijing last year will lead to their removal next month. Photo: EPA-EFE

China-Australia relations: Treasury Wine readies to ship Penfolds, Icon bottles once Beijing lifts import tariffs

The Chinese market accounted for about 30 per cent of Treasury Wine Estates’ earnings prior to the implementation of levies in March 2021. Photo: SCMP

The Chinese market accounted for about 30 per cent of Treasury Wine Estates’ earnings prior to the implementation of levies in March 2021. Photo: Reuters

China’s ban on Australian lobsters has Asean members clawing way into market

Lobsters from Southeast Asian nations are increasingly making their way to China amid Beijing’s protracted ban on Australian rock lobster imports. Photo: Getty Images

Lobsters from Indonesia (pictured) are increasingly making their way to China amid Beijing’s protracted ban on Australian rock lobster imports. Photo: AFP

China-Australia relations: Canberra ‘will not oppose’ Beijing’s CPTPP trade-pact bid

Australian Prime Minister Anthony Albanese is keen on mending frayed trade ties with China when he visits next month. Photo: Bloomberg

Australian Prime Minister Anthony Albanese is keen on mending frayed trade ties with China when he visits next month. Photo: Reuters

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China’s imports of Australian coal increased by 3,188 per cent year on year to US$1.34 billion in the first two months of 2024 having stood at zero in January 2023
But Russia’s share fell from nearly half to 22 per cent during the same period amid improving relations between China and Australia


China’s imports of Australian coal increased by 3,188 per cent year on year to US$1.34 billion in the first two months of 2024 amid improving relations between Beijing and Canberra.


China’s Australian coal imports surge, replacing Russia as top supplier, but hi-tech products to be ‘slow burner’

China’s imports of Australian coal increased by 3,188 per cent year on year to US$1.34 billion in the first two months of 2024 having stood at zero in January 2023 But Russia’s share fell from nearly half to 22 per cent during the same period amid improving relations between China and Australia