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If you ask authorities in China or in Australia, they likely will say that there isn’t any trade issue between the two countries.
Officially, China continues to have normal trade with Australia. But there have been numerous media reports showing that Chinese firms are not buying Australian goods at the direction of Chinese officials.
Since this isn’t a formal policy, determining why China is cutting back on imports of a wide range of products from coal to cotton is a matter of speculation.
The consensus among many observers is that China is “retaliating” for Australian officials’ comments.
The comments demanded more transparency around the origins of the SARS-CoV-2 virus that is causing the current COVID-19 outbreak.
It’s not that China doesn’t have a reason to reduce the buying of certain products. In fact, it’s pretty well-known that the country is looking to boost its internal market.
During COVID, many production facil...
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