Comments from Josh Frydenberg, Minister for Resources and Northern Australia
- Denies China retribution over Huawei ban
- Denies China has banned Australia imports
- Says exports to China will continue to be strong
- Says we shouldn't jump to conclusions
The Australian dollar jumped on the comments, which were on ABC Radio.
Reuters earlier reported that "customs at China's northern port of Dalian has banned imports of Australian coal and will cap overall coal imports from all sources to the end of 2019 at 12 million tonnes."
Reading the original report, it might be sensationalized. Chinese officials said it had nothing to do with Huawei and that it was "completely normal". The affected ports also comprise only 1.8% of Australian coal exports. China has been trying to promote its domestic coal industry.
For me, the fear is a bigger trade fight between China and Australia but I just don't see it. This could also be part of the efforts of China to pivot more to US supply in an effort to balance trade.
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