Australian coal exports have reportedly been blocked by China in a move that threatens to cost the economy billions and further inflame tensions between Canberra and Beijing.
Chinese state-owned tabloid The Global Times reports China has approved power plants to import coal from several countries “except for Australia.”
It would be the latest crackdown by China on Australian goods, which has so far hit beef, wine, barley and seafood, plus timber.
The freeze on coal would threaten to throw Australia’s $14 billion coal export industry to China into turmoil and have significant economic implications for Australia.
Trade Minister Simon Birmingham told the ABC he is deeply troubled by the reports China has banned Australian coal that “would appear to be the use of discriminatory practices”.
“We reiterate that all terms of our free trade agreement and world trade obligations between Australia and China should be upheld and respected,” he said.
The Global Times report said China planned to throw open its doors to other coal suppliers including Mongolia, Indonesia and Russia, but not Australia.
The move follows a meeting of China’s National Development and Reform Commission.
However, coal imports have faced an unofficial ban since October with reports of bulk carriers being left stranded offshore.
The move comes as Australian exporters heavily reliant on China have been brought to their knees by deteriorating trade ties.
Australian exports of cotton, timber, rock lobster, beef, wine and barley have already been caught up in trade disruptions this year.
Last month, China imposed tariffs on all Australian wine ranging from 107 to 200 per cent after launching an anti-dumping investigation into Australian wine in August.
The Australian government has denied the allegations of wine dumping, describing them as “perplexing”.
Earlier this year, China imposed tariffs on Australian barley companies. China has also suspended beef imports from several abattoirs.
Mr Birmingham said the Australian government was close to taking action against China with the World Trade Organisation.
“We are very very close in terms of finalising on the matter of barley and that is essentially the most imminent due to the nature of the actions China has taken there in finalising their dumping case,” he said.
Mr Birmingham said Australia disputes the findings China has made in relation to the trade dispute.
Additional reporting AAP
