Is the Chinese language Australian coal embargo about to crack within the face of rising costs? – Watts up with that?

Guest essay by Eric Worrall

h / t Observa; When Chinese producers asked their government for help, China offered, on “humanitarian” grounds, to allow Australian coal ships to unload in Chinese ports.

Has China just blinked over its Australian coal ban? ASX Energy is in the spotlight

Bernd Struben

While we’re enjoying a pleasantly warm summer in Australia – today it’s 37 degrees outside my window in the Adelaide Hills – spare the many trembling Chinese a thought. Not to mention some steelmakers in China who are watching the quality of their product deteriorate.

…

As the Wall Street Journal reports, “China’s central government made the embargo official in mid-December at a meeting with major Chinese power producers who are major buyers of thermal coal.”

…

Atilla Widnell, director of Navigate Commodities, told the South China Morning Post, “China’s economic punitive measures are causing self-inflicted wounds.”

…

Did Beijing just blink?

…

China plans to unload some stranded Australian coal shipments despite persistent import restrictions to show goodwill to countries with seafarers stuck on the ships, said a person familiar with the situation.

The move does not mean that China is relaxing its ban on Australian coal imports, and it is uncertain whether the shipments will be cleared through customs …

…

Read more: https://www.msn.com/en-au/money/markets/did-china-just-blink-on-its-aussie-coal-ban-asx-energy-shares-in-the- spotlight / ar-BB1dAopP

I suspect this whole sad episode will mean a severe and possibly fatal blow to the leadership of Chinese President Xi Jinping.

As Australia shakes off the effects of Chinese embargoes, Xi Jinping’s overreach and arrogance is causing Chinese industry to bleed millions, maybe billions of dollars.

Despite all the talk of green energy, China is still heavily dependent on carbon-intensive coal, including coal imports from Australia. China’s humiliating failed attempt to pretend otherwise has only served to highlight China’s weakness.

4.9
7th
be right

Item rating

Like this:

To like Loading…

connected