Trade penalties imposed by Beijing haven’t stopped the value of Australian exports from China from rising.
High commodity prices are fueling China’s export boom, according to new government trade data published by the Australian Financial Review.
In September, Chinese purchases of Australian goods increased by 50% year on year to $20.36 billion.
China’s exports to Australia increased by roughly 24% year over year to $8 billion.
Trade penalties have affected Australian exports to China in the last 18 months, including wine, coal, seafood, and barley.
When the Morrison government called for an international review into the origins and introduction of foreign influence laws, it sparked these protests across Australia.
Commodity price increases have been a major factor in driving up the value of Australian exports to China.
Chinese corporations and state-run industries’ need for iron ore is decreasing, though.
As a result of former Australian prime minister Tony Abbott’s comments, a Chinese media source warned that Australia should prepare for additional trade restrictions.
The China Daily editorialized that Australia, a country strongly dependent on trade with China, has “persistently probed the most sensitive nerve of its greatest trading partner.”
As long as lawmakers in Canberra continue to be unfriendly towards China, the worst is yet to come.
Mr. Abbott slammed China’s trade provocations during a speech in Taiwan, saying they were an attempt to force Australia to modify its policies.
Its ambassador submitted 14 requests, he explained, “basically demanding that we be made into a subordinate state to their dominion”.
Following cooling in the real estate construction boom and government-enforced energy use limitations, China saw its global exports grow at a little higher rate in September. Meanwhile, demand for imports of iron ore and other commodities decreased.
Exports increased by 28.1% to $413 billion, according to customs figures.
Compared to August, this was a faster rise of 27% than expected and well above experts’ predictions.
Compared to the previous month, imports increased by only 17.6% to $324 billion.