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ABC News
ABC News
Politics
Anna Henderson, Stephen Dziedzic, James Oaten and Som Patidar

China's The Global Times appears to confirm a ban on Australian coal imports amid perilous trade tensions

Trade Minister Simon Birmingham says it's 'unacceptable' for trade dispute to play out in the media

Chinese state media appears to have confirmed that Beijing has blocked Australian coal imports, in a move which is likely to cost the economy billions of dollars and further inflame tensions between the two countries.

Nationalistic state-owned tabloid The Global Times reports that China's top economic planner has approved power plants to import coal without clearance restrictions from several countries "except for Australia".

Australian government sources say such media reports should be treated seriously because they are generally directly sanctioned by the Chinese Government.

China has unofficially banned Australian coal imports since October, leaving dozens of bulk carriers stranded offshore.

The freeze has stoked deep anxiety in the mining industry.

Last month, Chinese authorities blamed "environmental problems" for the delays.

Australian Government officials have dismissed this explanation in private.

And the Global Times report seems to confirm that China's leaders are now willing to publicly confirm — at least indirectly — that the ban is an act of economic punishment, and that it is likely to continue.

The newspaper quotes Wang Yongzhong, director of the Institute of Energy and Economy at the Chinese Academy of Social Sciences, who warns "Australia is gradually losing the Chinese market".

He says China is sourcing coal from Indonesia, Russia and from Mongolia, which "could take a large share from Australian coal, as the relationship between China and Australia has been deteriorating".

The article also says China's coal use will drop over coming decades as it moves to reduce carbon emissions.

Australian coal exports to China were worth $13.9 billion last year. (ABC Newcastle: Anthony Scully)

If the freeze is maintained, it could have significant economic implications for Australia, which last year exported coal worth almost $14 billion to China.

Thermal coal used by Chinese power stations accounts for about $4 billion of that figure.

Australia's Trade Minister Simon Birmingham has called on Chinese authorities to "rule out" the Global Times report.

Senator Birmingham said if the story is accurate it "would appear to be the use of discriminatory practices against Australian coal".

The move against coal is the latest in an escalating series of trade punishments meted out by Beijing.

Relations between Australia and China have been spiralling downwards in the wake of Canberra's call for an independent inquiry into the origins of COVID-19.

Crew members stranded during stoush

The dispute has also stranded crew members on coal carriers unable to dock at Chinese ports.

Some mariners have now been stuck on vessels for several months.

The Indian flagged M V Jag Anand was not allowed to unload its cargo of Australian coking coal at a Chinese port back in June.

The Great Eastern Shipping Company said it unsuccessfully offered to send the ship to Japan at its own cost and relieve the crew, according to Indian newspaper Business Line.

Crew on board, who spoke to the ABC on condition of anonymity, said Chinese authorities have told them the coal is "poor quality".

The crew on board one of the ships carrying coal to China say they have been stuck at sea for 14 months. (Supplied)

"We are struck here as our ship is not allowed to move," one seafarer told the ABC.

Some crew members said they had been stuck on the ship for 14 months, far longer than their nine-month contract.

"I do have an injury in shoulder but not getting any medical attention. Another crew lost his father and could not go. Now his mother is suffering from cancer and in very serious condition.

"Only some miracle can save us now. We are at God's mercy."

A video posted to social media, purportedly from the ship, shows crew holding up signs saying "I want to go home", "we are human too", and "floating prison".

The crew say the company selling the coal will not let the ship leave port until the coal is unloaded.

"They prefer commercial interests over human interests," one seafarer said.

Last week, the ABC sent a series of questions to Great East Shipping, but the company has not responded.

Trade feud from coal to crayfish

In recent months, China has taken several measures to stymie Australian imports.

Australia's largest export market has applied prohibitive tariffs on the massive wine market with signs the trade has now effectively ground to a halt.

Chinese tariffs on barley imports have also led to threats from Australia of action through the World Trade Organization. Some observers predict Australia might take that step as early as this week.

In turn, Beijing has accused Australia of dumping grain and wine on the Chinese market and unfairly subsidising farmers.

Tonnes of Australian rock lobster have also been stopped at Chinese ports.

The crayfish would usually sell at a premium on the Chinese market but have instead been sold to local supermarkets.

In some parts of Western Australia, western rock lobsters have been up for sale at the bargain price of just $20.

But the confirmation of the coal ban is likely to fire fresh anger in Canberra, as well as fuelling anxiety about which industries are likely to be targeted next.

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