China’s Coal War With Australia Fuels Shortage at Home
China’s ban on Australian coal imports has caused troubles at home as the Chinese coal market enters into a crisis of surging prices, supply shortages, and flawed policy goals. A cold winter threatens to push the countries’ issues into a deeper state as the two quarrels over a diplomatic brawl that started with Australia’s request for an independent global inquiry into the origins of Covid-19.
Beijing allegedly imposed an informal ban in September that forced boatloads of Australian coal to remain at sea for weeks. china’s central government publicized the embargo and made it official in mid-December after meeting with major Chinese electricity producers who typically buy large amounts of thermal coal. Prices have now risen 84% since midyear, according to officials.