Turning Screws: China’s Australian Coal Ban

Overly reliant economies are dangerously fragile things.  As it takes two parties, often more, to play the game, the absence of interest, or its withdrawal by one, can spell doom. The Australian economy has been talked up – by Australian economists and those more inclined to look at policy through the wrong end of a drain pipe – as becoming more diverse and capable of withstanding shock.  In truth, it remains a commodity driven entity, vulnerable to the shocks of demand.  Think Australia, think of looting the earth.

Such carefree, plundering optimism lays bare the jarring fact that Australia remains obsessively and maddeningly committed to King Coal.  To coal, she pays tribute, runs errands and sponsors with conviction.  And it is coal that keeps the country tied to hungry markets which, for the moment, see use for it.  But such hunger is not indefinite.  India and China, traditional destinations for Australia’s less than innovative dig-it and export-it approach, have made it clear that their lust for coal is temporary.  The appetite is diminishing, despite occasional spikes. Renewables are peeking over the horizon, forming the briefing documents of energy and trade departments.

To this comes another problem. Australia has been rather bullish of late towards the country that receives most of its earthly treasures. The People’s Republic of China has made it clear that it does not agree with the ambitiously aggressive line Canberra has taken on a…

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