Australian exporters face a difficult hunt for new markets as tensions with China reach a precipitous point, hurting businesses on both sides.
China has either slowed or stopped imports of Australian cotton and coal in recent weeks.
While Australia’s relationship with its No.1 trading partner has been on thin ice since 2017, tensions escalated rapidly earlier this year after Prime Minister Scott Morrison called for an international inquiry into the origins of COVID-19. Agricultural commodities worth an annual 13 billion Australian dollars ($9.25 billion) – have suffered the biggest collateral damage as a result.
The trade spat comes at a tenuous time for Australia’s AU$2 trillion economy, which is battling its first recession in nearly 30 years, brought on by the coronavirus pandemic.
The tensions have spurred many Australian businesses – hitherto content to sell into the world’s second biggest economy to start seriously developing new markets from Indonesia to Vietnam, Bangladesh and India.
