The first Australian coal shipment to China in more than two years is on the verge of docking, signaling hard evidence of a major thaw in trade relations between the two countries following months of diplomatic talks.
(Bloomberg) — The first Australian coal shipment to China in more than two years is on the verge of docking, signaling hard evidence of a major thaw in trade relations between the two countries following months of diplomatic talks.
Bulk carrier Magic Eclipse was anchored off the southern port city of Zhanjiang on Thursday morning, according to Bloomberg shipping data. It’s carrying metallurgical coal mined in Australia and destined for the Chinese market. Zhanjiang is a center for steel production in China.
China placed informal restrictions on the use of Australian coal in 2020, after then-Australian Prime Minister Scott Morrison called for an international investigation into the origins of Covid-19 in Wuhan that year.
The punitive trade actions mandated by Beijing also extended to lucrative Australian agricultural exports including wine, barley and lobsters. China is Australia’s largest trading partner.
However, following the election of a center-left Labor government in Australia in May, diplomatic relations between Canberra and Beijing steadily improved. Commerce Minister Wang Wentao met with his Australian counterpart Trade Minister Don Farrell on Monday, for the first bilateral trade talks in more than two years.
Both men agreed to “enhance dialogue” with the aim of ensuring “the timely and full resumption of trade.”
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