Australia has found new markets for exports restricted by China after the recent fallout between the two countries, CNBC reported.
- Lowy Institute Lead Economist Roland Rajah said that while exports to China expectedly plunged in areas hit by sanctions, most of the trade found other markets.
- Beijing imposed restrictions on Australian imports after Australia backed a global inquiry on China’s handling of COVID-19.
- China imposed tariffs and implemented bans and restrictions on Australian goods which are estimated at $25 billion in 2019.
- Among the Australian goods targeted were barley, wine, beef, cotton and coal, making up 1.3% of Australia’s gross domestic product.
- Rajad said most Australian exports to China held steady through most of 2020 except for coal which was halved as restrictions kicked in.
- Coal exports across the glove amounted to $9.5 billion in January, even higher in annualized terms than before restrictions were in place.
- Goods were diverted to other export markets, and Australian trade climbed $4.2 billion in annualized terms for such items.