China's power plants warns not to buy Australian coal

Michael McCormack says that trade ministers and diplomats are trying to fix this concern


Deputy Prime Minister Michael McCormack is concerned that coal exporters may face a difficult time selling the commodity in China.


There are reports that the Chinese government is warning their state-owned power plants not to buy new shipments of Australian coal and instead use domestic products.




McCormack says that Trade Minister, and diplomats were trying to overcome this issue.


He told ABC on Friday that" Of course they were very concerned with that issue" 

“But we have a two-way relationship with China. Australia needs China as much as China needs Australia and we want to make sure that everything we do is done in a meticulous and considered manner. "


China's cooling on Australian coal could indicate the latest increase in trade tensions between the two countries.


Last year, coal exports at Chinese ports faced delays.


Beijing has imposed a restrictive 80% tariff on Australian barley, while four major abattoirs have been restricted from exporting red meat to China.


McCormack said that Chinese steel mills and power plants would require high-quality coals of Australia to operate the plant.


“We want to ensure that our coal exports have a destination.


“China has been our customer for a long time. They know the good quality of our coal, they know the quality of our iron ore and other natural resources. "




Birmingham is being underestimated by its Chinese counterpart.


Home Affairs Minister Peter Dutton said the stonewalling was part of China's strategy.


They do not think that they have got any legal basis for implementing these charges and they want them to change their place.


He said Australia would stand firm in its values after pushing for a global coronavirus investigation.


Thermal coal, which is used to generate electricity, is Australia's second largest export to China after the export of iron ore.


China has also announced new supervisory regulations for iron ore, with opinion divided on its impact on exporters of Australia.


Birmingham expects iron ore penetration in China to accelerate due to the changes.


Early signals of talking to the industry are actually that it will provide a profitable option for both China as well as Australia,


But the Global Times - considered to be a media voice of the Chinese government - warned that import of Australian iron ore could cause problems by political tensions between the two Australia and China.


"This is another underlying warning for Australia," Yu Lei, a leading research fellow at Liaocheng University, told the newspaper.

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