Chinese officials are jamming up imports of Australian coal, with at least one major port suspending customs clearance, but Beijing has denied a report of an official ban.
The foreign ministry on Friday said the report of a block on Australian coal at one northern port was false, echoing information from miners, Canberra lawmakers and people familiar with official orders in China. The news had roiled markets on Thursday as it was seen as a sudden escalation of trade tensions between the two countries.
For several weeks, China has been targeting Australian coal imports by slowing down customs clearance, resulting in delays at ports and stoking speculation that Beijing is retaliating against a ban on Chinese telecommunications giant Huawei Technologies Co. Markets are spooked that it could be the start of more widespread import curbs against Australia, which counts China as its biggest trading partner.
Signs that Australian coal is being singled out first emerged at the end of January. Just before the start of the Lunar New Year holidays, Chinese customs officials told some local authorities to start controlling shipments from Australia, without giving explicit instructions as to how or why, according to a person with knowledge of the order, who asked not be identified because they’re not authorized to speak publicly.
While the local officials acted on the order in various ways, the general effect was to extend clearance for Australian coal to more than 40 days. It typically takes about five to 20 days.
