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- China restricted imports from Australia. Now Australia is selling elsewhere
China restricted imports from Australia. Now Australia is selling elsewhere
CNBC reports that wide restrictions that China slapped on Australian exports are not as damaging as it was feared they’d be, because Australia is finding new markets for its goods.
Tensions between the countries have soared in recent months, deteriorating sharply after Australia supported a call for a global inquiry into China’s early handling of Covid-19. Beijing has since taken several measures restricting Australian imports, ranging from levying tariffs to imposing other bans and restrictions. That has affected Australian goods including barley, wine, beef, cotton and coal.
Australia is one of the few developed countries in the world that has enjoyed a trade surplus with China. With China being Australia’s largest trading partner, analysts expected Australia to be hit badly by the restrictions.
But those analysts now say Australia has managed to contain the damage by diverting many of its exports to other countries.
Overall, the affected Australian exports to China — except for coal — held steady through most of 2020 to the tune of just over $9 billion. They eventually dropped to about half that amount as restrictions escalated in late 2020.
Following the restrictions, those same goods found other export markets, and trade rose by about $4.2 billion in annualized terms for those goods, offsetting most of the losses from China.
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