China,which accounts for about 40 per cent of Australian exports,has imposed a raft of trade measures since 2020,blocking billions of dollars of trade after placing curbs on everything from beef,barley and coal to lobsters,wine and timber.
The restrictions have been largely brushed off by investors. Since China started imposing curbs in mid 2020,the share price of Graincorp,one of the country’s largest grain exporters,has surged more than 60 per cent. Meanwhile,Treasury Wine Estates’ stock has risen by a third.United Malt Group,however,which exports ingredients used to make craft beer,has struggled to climb.
The trade barriers appear to be easing as relations improve.
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Australian Foreign Minister Penny Wong visited Beijing last month to celebrate 50 years of bilateral diplomatic ties. Chinese officials are now discussing plans to allow four major importers to resume purchases of Australian coal as early as April 1.
Economists at Goldman Sachs Group expect any easing to have modest implications for Australia’s economy,with the country’s two-way trade balance with China jumping to a record high in 2022 thanks to surging prices of key export iron ore.