Tensions between countries have risen in recent months, distance Australia will support a request for a global investigation into the administration of China At the beginning of the coronavirus pandemic.
since then, The Beijing regime has taken various measures to restrict Australian imports, from imposing tariffs to bans and restrictions. US media reported that this affected Australian products such as barley, wine, beef, cotton and coal. CNBC.
Altogether, the value of the affected exports was about $25 billion in 2019, or 1.3% of Australia’s GDPAccording to the Lowy Institute, based in the oceanic state.
Australia is one of the few developed countries in the world that has enjoyed a trade surplus with China. With the Asian country being Australia’s largest trading partner, analysts believe the country will be hit hard by the restrictions.
However, now they are keeping it Australia has avoided damage by shipping many of its exports to other countries.
“Exports to China declined, unsurprisingly, in the areas affected by the sanctions, but Most of this lost trade seems to have found other markets“, He said Roland Raga, chief economist at the Lowy Institute, according to CNBC.
In general, Australian exports to China were affected, except for coal, and stabilized Stable for most of 2020, worth about $9 billionMale Raja. He added that it fell to half that amount when restrictions were tightened in late 2020.
after restrictions, These same products found other export markets, and trade increased by about $4.2 billion On an annual basis for those products, most of China’s losses are offset, according to Raja.
Booming sectors: coal, lumber, seafood
Coal is one of the Basic Products This is thriving despite the Chinese ban, according to CNBC. “Australian coal exporters appear to have been very successful in switching to other markets”Raja said. “Exports to other markets initially increased when China reduced its total imports of coal from the middle of the year. This trend then accelerated when China specifically targeted Australian coal starting in October 2020.
In January 2021, Australian coal exports to the rest of the world were $9.5 billion higher Rajeh said on annual terms than it was before the ban.
Marcel Thilliant, chief economist for Australia and New Zealand, agreed with the analysis. While Australian non-ferrous ores exports to China fell 40% last year, “Coal miners were able to divert their shipments to other countries”, He said. “The upshot is that the conflict is not as bad as many think for the Australian economy.”, he completed.
Show other Australian exports affected by these restrictions “Clearer Signs of a Major Trade Deviation”Male Raja. Examples Barley, cotton, oysters and wood who managed to find new markets.
“Sales of these products to other markets increased sharplyBut only after the tightening of Chinese sanctions in late 2020.”