Australia-China relations are on the mend

Relations between Australia and China appear to be improving amid reports that Beijing will allow coal imports to resume for the first time since 2020.

It is the latest positive step between the two nations after Prime Minister Anthony Albanese met Chinese President Xi Jinping in November and Foreign Minister Penny Wong met her counterpart in Beijing last month.

Australian coal exporters are increasingly confident this is more than just a rumour, despite similar reports last year that China was considering resuming purchases of Australian coal that came to nothing.

The industry is encouraging China to move decisively and not risk losing its next round of purchase contracts.

Australia-China Business Council Chairman David Olsson said it would pave the way for more business in the future.

“Now that high-level government-to-government meetings between Australia and China have resumed, we have a better environment to address the trade restrictions that exist between the two countries,” he told AAP.

“The resumption of high-level meetings sends a strong and positive signal to the Chinese establishment and the business community about Australia’s role as China’s trading partner.”

Research director at the Australia-China Relations Institute, Roc Shi, said that while the economic impact of resuming the coal trade might not be huge, it would be a step forward.

“The change is more important politically than economically… This action signals that China has taken the first step to repair the relationship,” he told AAP.

“Technically, it is not difficult for the Chinese government as the ban has never been officially announced…however, the implication is significant as it indicates China’s willingness to improve the bilateral relationship.”

The Department of Foreign Affairs and Trade told AAP it was aware of reports that Chinese importers may restart buying Australian coal this year.

“It has been the consistent view of the Australian government that the resumption of normal trade across the board between Australia and China would be in the best interests of both countries. That is also true for coal,” the department said.

Meanwhile, the consequences of Australia’s imposition of COVID-19 measures on travelers from China seem unlikely despite being called “disproportionate and simply unacceptable” by Beijing.

Travelers from China must prove they have tested negative for COVID within 48 hours before flying to Australia. China has a similar measure for incoming travelers.

Olsson said that China and Australia should work together for mutual benefit after a difficult time during the pandemic.

“Australia’s public health response may not have been perfect in recent years, but it has delivered good results… I’m sure there are areas of public health policy that both sides can share to mutual benefit,” said.

“New waves of the virus (in China) are another issue that needs to be addressed, but for those looking to the long term and prudent in risk management, China remains an attractive market and trading partner.”