Speculation is growing that one of the world’s largest economies is preparing to welcome back Australian commodities.
Market observers are spreading rumours that mainland China’s economy suffered badly from banning Aussie coal imports, and the Russia-Ukraine conflict’s impact on global supply. They claim these factors, combined with a sharp rise in domestic coal prices, could force the Chinese Communist Party (CCP) to lift sanctions on Australian mineral producers.
“No further information is out yet but the trajectory is [heading] towards it,” one anonymous Chinese source said according to News Limited.
Beijing Fuhua researchers agree that Chinese traders are increasingly discussing a potential end to the Australian coal import ban as soon as December 2022.
“There are obvious signs of recovery in the relationship,” they said according to the media outlet.
The remarks came after Australian Foreign Minister Penny Wong resumed bilateral talks with her Chinese counterpart, and urged Wang Yi and other CCP members to stop blocking coal imports.
“We should aim for a relationship of mutual benefit and respect,” Wong said in a public statement.
“Both our countries benefitted greatly from the commitments we have previously made to each other on trade [and] we both stand to gain from the removal of current blockages.”
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