CHINA'S Global Times news outlet says the government has told coal-fire power stations they can import coal from any country they like except Australia, an edict that has been interpreted as confirming a political ban against the nation over political issues.
The article, headlined "China extends full open gesture to imported coal except for Australia", is dated Sunday, December 13.
The article is the latest in a series of moves - not always officially confirmed - by China against the Australian coal industry, one of a number of Australian export products targeted by Beijing for what are widely perceived to be political reasons.
Although Japan is still Newcastle's biggest coal customer, taking at least 35 per cent of Newcastle's coal exports this year, China has dramatically increased its purchases in the past 10 years, and is set to finish 2020 as our second biggest buyer with about 25 per cent.
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The Global Times report opens saying: "China's top economic planner on Saturday gave approval to power plants to import coal without clearance restrictions, except for Australia, in a bid to stabilise coal purchase prices.
"Analysts said that China has various sources of coal, including Mongolia, Indonesia and Russia. Moreover, China is reducing coal use to curb carbon emissions, which will mean lower demand for coal in the next few decades."
The article quotes Wang Yongzhong, a director of the Institute of Energy Economy at the Chinese Academy of Social Sciences, on the implications of the directive.
Mr Wang said China had become the world's largest coal importer in the past 10 years, with its major suppliers being Australia, Indonesia, Russia and Mongolia.
"It (adjacent Mongolia) could take a large share from Australian coal, as the relationship between China and Australia has been deteriorating and Australia is gradually losing the Chinese market," Mr Wang said.
"Domestic suppliers can also grab some market share."
Mr Wang said China had been importing almost 300 million tonnes a year, in line with figures recently reported by the Newcastle Herald. Even so, imports account for less than 10 per cent of the estimated 3.8 billion tonnes consumed by China last year.
Canberra has signalled it is taking the report seriously, and its publication is being taken as another sign that China is trying to "tighten the screws" on Australia over its relationship with the US and other members of the "Five Eyes" security pact.
The ABC says Australia's Trade Minister Simon Birmingham has called on China to "rule out" the report, saying that if accurate it "would appear to be the use of discriminatory practices against Australian coal".
"We reiterate that all terms of our free trade agreement and world trade obligations between Australia and China should be upheld and respected," Mr Birmingham told the ABC.
The Global Times is an English language outlet credited with being a mouthpiece for the Chinese government when it wishes to broadcast its moves publicly.
Its homepage is full of articles - news, editorials and viewpoints - that criticise the West, with Australia an increasing target of its output.
The Herald is seeking comment from major industry groups and will update this article as more information comes to hand.
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