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Events
Mongolia blatantly broke the contract, China announced the lifting of the ban on Australian coal, Mongolia may regret it www.min.news
In the past few years, due to Australia's finger-pointing on China-related issues, China made a decision to restrict coal imports from Australia, and instead chose to import coal from Mongolia.
However, recently, due to Mongolia's unilateral breach of contract and unilateral price increase, China angrily lifted all restrictions on Australian coal. Mongolian coal may lose China, a huge consumer market, and Mongolia may regret it.
Let's review why China previously restricted the import of Australian coal
In 2020, Australia made a high-profile announcement that it would investigate the origin of the coronavirus in China, and followed the United States in making inappropriate remarks and implementing unfriendly measures on China's 5G cooperation, which led to the deterioration of relations between China and Australia. The import of some resources in Australia, including coal. It is precisely because of this restrictive measure that the proportion of China's imports of Australian coal has dropped from 49% to 3%.
After restricting coal imports to Australia in 2020, China finally chose Mongolia as China's first choice for coal imports after evaluating the market conditions of coal resources in Mongolia, Russia, India and other countries. The move enabled Mongolia to replace Australia and officially become China's largest coal supplier .
Exporting coal to China has brought continuous benefits to Mongolia
According to data from the website of the Ministry of Commerce of China, Mongolia will export 31.68 million tons of coal in 2022, a year-on-year increase of 101.7% , of which 90% will be exported to China. If China and Mongolia continue to maintain cooperation, Mongolia can gain huge benefits from it, and the cooperation will also enable both parties to achieve a win-win situation of mutual benefit and win-win results.
However, Mongolian coal is highly exported to China, and this situation has become a controversial topic in Mongolia
In December 2022, demonstrations related to China's coal trade broke out in Mongolia, and the Mongolian government launched an investigation. In order to rectify the country's coal trading market environment, unilaterally increase the price of coal exported to China, and even directly unilaterally terminate the coal sales agreement signed with Chinese companies, and even put the coal on the stock exchange for auction, further causing coal prices rise.
Some people think that this is because Mongolia has tasted the sweetness of cooperation with China, resulting in too much greed.
Since the new Australian Prime Minister took office in May 2022, the new Australian government has repeatedly stated that it hopes to repair relations with China , reversing the previous government's "anti-China vanguard" stance towards China; China has also expressed its sincerity based on the new Australian government , Expressing willingness to repair Sino-Australian relations, so far, Sino-Australian relations have recovered rapidly.
On the one hand, Mongolia unilaterally raised prices and broke the contract; on the other hand, China-Australia relations have rebounded. At the same time, in order to avoid the squeeze of coal import channels, after comprehensive consideration, China re-selected Australian coal as the first choice, and lifted the restrictions on Australia. All restrictions on coal.
In February 2023, Australia's coal export volume was 24.1585 million tons, the second consecutive month of decline, a decrease of 10.03% from January , and a decrease of 7.9% from the same period last year .
In contrast to China, according to statistics from the General Administration of Customs of China, from January to February 2023, China's coal imports will be 60.642 million tons, an increase of 70.8% compared with the same period last year.
The positive and negative coal demands of China and Australia complement each other, and the cooperation space is highly consistent.
Australia is a large coal-producing country with proven coal reserves of 147.4 billion tons, accounting for 14% of the world's proven coal reserves, and is the third largest country in the world.
China is also a country with a large population. China's demographic dividend has not disappeared. At the same time, China is also a country with a large energy consumption. Moreover, after the epidemic, China's consumption capacity will become stronger .
Based on the respective needs of China and Australia, as long as the two sides maintain a good cooperative relationship, I believe that the coal trade cooperation between China and Australia will achieve a win-win situation for both parties, which is a wise choice for both parties.
Published Date:2023-03-19
