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That was quick: Days after Wong’s China talks, coal exports ready to resume

Last month’s thawing of diplomatic relations between Australia and China appears to have paid dividends, with reports China will resume Australian coal imports.

Jan 05, 2023, updated Jan 05, 2023
Foreign Affairs Minister Penny Wong. (AAP Image/Matt Turner)

Foreign Affairs Minister Penny Wong. (AAP Image/Matt Turner)

It would be the first time since Beijing imposed an unofficial ban on coal trade with Canberra in 2020.

Foreign Minister Penny Wong met with Chinese counterpart Wang Yi during a visit to Beijing days before Christmas. The talks were the first following a four-year diplomatic deep freeze between the two countries.

The pair discussed trade sanctions imposed on Australia by China, as well as the fate of two Australians detained in the country. The meeting was described as “very constructive” by Senator Wong.

“We had a good discussion about a number of issues, and particularly in the context of trade, there was a discussion about opportunities for further dialogue to work through how … the trade blockages (might be) removed,” she told reporters at the time.

On Wednesday, Reuters reported that China’s state planner had allowed three central government-backed utilities and its top steelmaker to resume coal imports from Australia.

The National Development and Reform Commission summoned China Datang Corp, China Huaneng Group, China Energy Investment Corporation and China Baowu Steel Group on Tuesday to discuss the resumption of coal imports from Australia, two people familiar with the matter were reported as saying.

The firms will be granted permission to purchase Australian coal only for their own use, they said.

The commission did not respond to a request for comment. The four companies named did not immediately respond to a request for comment outside office hours.

Senator Wong’s office has also been contacted for comment, but has not immediately responded.

China imposed restrictions on Australian commodities including coal and wine just over two years ago after relations between Beijing and Canberra turned sour over several political and public health matters.

Australia used to be the second largest coal supplier to China before the ban, accounting for nearly 30 per cent of China’s coal imports or more than 70 million tonnes of supply.

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