IMPORTS – CHINA – REGULATION

China spat puts $149bn trade at risk

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Original article by Will Glasgow, Ben Packham
The Australian – Page: 1 & 8 : 5-Nov-20

There is growing concern that the Chinese government is set to impose bans on more Australian imports. Wine producers have become the latest casualty of escalating tensions between the two nations, with Chinese customs officials preventing them from exhibiting at the China International Import Expo. The lobster industry has also been targeted, with a shipment worth more than $2m having to be destroyed after it was delayed at a Chinese airport. Unconfirmed media reports in China have suggested that a widespread ban on Australian imports – including coal, copper and sugar – will take effect on 6 November.

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Australian beef exports at risk

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Original article by Michael Smith
The Australian Financial Review – Page: 10 : 22-Jun-20

China imposed bans on meat from four of Australia’s largest abattoirs in May, citing health certification and labelling issues. Xiamen Xiangyu Group executive Eric Huang says the commodities trader will have to switch to US beef suppliers if the bans on the four abattoirs are not lifted in the next six months; the state-owned Chinese company purchases 20,000 tonnes of Australian beef a month. The federal government contends that the ban was ‘punishment’ for its push to hold an independent inquiry into the origins of COVID-19.

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XIAMEN XIANGYU GROUP

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

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Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

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BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA

Chinese prefer Indonesian coal

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Original article by Glenda Korporaal, Nick Evans
The Australian – Page: 17 & 20 : 15-Apr-19

Michael Cooper of S&P Global Platts says new tenders being issued by China’s state-owned power stations are specifying lower-grade thermal coal of the type that is produced by Indonesia. He adds that traders have indicated that the preference for coal from Indonesia rather than Australia is politically motivated. He also notes that Chinese power stations are also favouring coal sourced from Colombia, despite much longer shipping times. There has been speculation that restrictions on Australian coal imports could be lifted at the end of May, but it has not been confirmed by the Chinese government.

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S&P GLOBAL PLATTS, RBC CAPITAL MARKETS

Pyne blamed for freeze on coal imports

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Original article by Glenda Korporaal
The Australian – Page: 19 & 20 : 21-Mar-19

Michael Cooper of S&P Global Platts says Chinese buyers have favoured Indonesian coal over Australian coal since January, despite its lower quality. The firm expects China’s restrictions on Australian thermal coal imports to last until the end of May. Meanwhile, Trade Minister Simon Birmingham has rejected suggestions that China’s import restrictions are politically motivated. Some Chinese coal traders have claimed that Australian coal imports have been targeted due to comments made by Defence Minister Christopher Pyne in January regarding China’s presence in the South China Sea.

CORPORATES
S&P GLOBAL PLATTS, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF DEFENCE, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIAN LABOR PARTY, CHINA. MINISTRY OF COMMERCE, GLENCORE PLC, NEW HOPE CORPORATION LIMITED – ASX NHC, CHINA. GENERAL ADMINISTRATION OF CUSTOMS

No conspiracy as coal delays double

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Original article by John Kehoe, Michael Smith
The Australian Financial Review – Page: 8 : 25-Feb-19

It is now taking around 40 days for Australian coal to be cleared through five ports in northern China, up from around 25 days. The ports in question receive around eight per cent of the Australian coal exported to China, and less than two per cent of Australia’s total coal exports. Trade Minister Simon Birmingham says protection of local coal miners and environmental checks seem to be the main reasons for the delays, while he has rejected any "conspiracy theories" regarding the possible reasons for the delays.

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AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

China slaps ban on exports

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Original article by Perry Williams, Glenda Korporaal
The Australian – Page: 1 & 2 : 22-Feb-19

The Australian dollar fell by more than one per cent on 21 February following reports that China has imposed an indefinite ban on thermal coal exports from Australia entering five ports in northern China. Trade Minister Simon Birmingham has asked Australia’ s ambassador in Beijing, Jan Adams, to investigate the apparent ban. Australia exported around $2.1 billion worth of thermal coal to the five ports in 2018. It has been suggested that China’s action could be linked to Australia’s ban on technology company Huawei.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, MINERALS COUNCIL OF AUSTRALIA

Coal sector failing to overturn China’s import testing

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 9-May-16

Greg Evans of the Minerals Council of Australia says China should either abandon its policy of testing the quality of imported coal or allow shipments to be tested before they depart for China. He adds that the quality control tests contributed to a decline in Australia’s coal exports to China to just 71.2 million tonnes in 2015, compared with 93.4 million tonnes in 2014. The Australian Government has also lobbied China to drop the policy, which was introduced in early 2015.

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MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

BHP says China coal tests hurt free trade

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 2-Nov-15

China’s introduction of quality-testing for imported coal has had no direct impact on BHP Billiton, whose shipments have been cleared. However, BHP executive Shaun Verner believes that some coal exporters have had to sell coal at significantly lower prices in other markets after failing to pass China’s new quality control requirements. He notes that the slump in the price of metallurgical coal means it is costly for a coal producer to have a shipment rejected.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Chinese coal quality rules may hit exporters

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Original article by Sarah-Jane Tasker
The Australian – Page: 18 : 13-Jan-15

The ANZ Bank’s Mark Pervan says China’s move to impose quality-control restrictions on coal shipments may adversely affect Australian coal producers. China plans to crack down on the importation of coal whose ash content exceeds 16 per cent. Some 92 per cent of the 40.3 million tonnes of coal imported from Australia in the first 10 months of 2014 exceeded this threshold. Pervan notes that it is costly for producers to subject coal to greater processing in order to reduce its ash content

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION