Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
Politics
Dominic Giannini and Andrew Brown

First coal shipments to China stokes trade optimism

Don Farrell, in talks with China's Commerce Minister Wang Wentao this week, wants to end trade row. (Lukas Coch/AAP PHOTOS) (AAP)

The first shipments of Australian coal to China in more than two years have been met with cautious optimism in Canberra, with hopes of an improved trading relationship.

Some 72,000 tonnes of coal arrived in Zhanjiang port, a first since sanctions on Australian exports were imposed.

A second vessel with 73,000 tonnes of coal on board arrived in the port city of Taishan.

The ships still need to clear customs but Trade Minister Don Farrell welcomed the development.

"Any step towards resolving the trade impediments would be welcome," he said.

Traders expect the two cargoes to pass Chinese customs smoothly.

Coal importers can discharge their cargoes at ports first and then apply for customs clearance.

There are at least seven Australian coal carriers heading to China that are due to arrive in coming weeks.

China instituted the ban after the former federal government called for an investigation into the origin of COVID-19.

Prime Minister Anthony Albanese said the trading relationship was important for Australian jobs and the economy with China receiving more exports by value than the next three trading partners combined.

But he said it was also good for China if the trade impediments were removed.

"We have not just resources but we have wine, meat, barley, seafood - the best in the world," he said on Thursday.

"We are cautious about making announcements before (the coal reports) are confirmed."

He said Australian businesses and industry people he had met were "very pleased with the constructive direction of the relationship".

China's foreign ministry spokeswoman said the two nations had "highly complementary economies" when asked about the trading relationship.

"The sound and steady growth of ties between our two countries serves the fundamental interests of both peoples and helps advance peace, stability and prosperity," Mao Ning said.

"We are ready to launch or resume dialogue and communication with Australia in various sectors, expand co-operation, manage differences and strive to rebuild trust."

Beijing's mouthpiece The Global Times reported Chinese steel firm Baosteel would receive one of the coal shipments after former prime minister Scott Morrison "sabotaged bilateral relations".

Following the arrival of the coal, there are hopes sanctions on Australian barley, lobster and wine will also be dropped.

Nationals senator Bridget McKenzie said any increase in exports was a welcome boost to rural and regional Australia and urged the government to act in the nation's interests.

"We didn't take a backward step in maintaining national sovereignty, sometimes at the expense of short term exports for our primary producers but they backed us in," she said.

"The proof's in the pudding - China has been shown that Australia will always stand up for our national interest."

Opposition foreign affairs spokesman Simon Birmingham said China's attempts at economic coercion had failed.

"There have been no changes of policies in Australia and it is essential that we continue to hold true to those policies," he said.

"We hope to see an effective stabilisation of relations with China.

"That's why sanctions should be removed if China is genuine about a true stabilisation in relations and ending any attempts at economic coercion."

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.