Despite rising geopolitical tensions between Australia and China, Australian resource exports to the Asian major remain significant.
Advisory firm Wood Mackenzie (Woodmac) Asia Pacific vice chairperson Gavin Thompson says while import bans and tariffs have been mooted on Australian beef and wine imports into China, the demand for these products are ‘insignificant’ in terms of overall trade with the country, while iron-ore, coal and liquefied natural gas (LNG) exports make up the bulk of trade.
Despite the increasing war of words, Australia’s energy and natural resources exporters are in over-drive. As China recovers from the pandemic, demand for Australian iron-ore, coal and LNG is booming, with iron-ore and LNG imports up 8% and 9% year-to-date respectively versus 2019.
Chinese imports of Australian coal are way ahead of where they were before the pandemic, Thompson says.