Prime Minister Scott Morrison is demanding confirmation on whether or not China has banned Australian coal, issuing a warning that the world is keeping a close eye on the escalating trade dispute.
The Australian government has not received formal notification of the coal ban, instead finding out through Chinese state-owned media.
Authorities in Australia are now rushing to stack up the reports.
“Until we are in a position to have that clarified then we can only treat this as media speculation,” Mr Morrison told reporters on Tuesday.
“If that were the case, then that would obviously be in breach of WTO rules, it would be obviously in breach of our free trade agreement, and so we would hope that is certainly not the case.”
Mr Morrison has said if China has banned Australian coal, then they are at a loss, as they will need to source dirtier coal from other countries.
He said other countries are currently watching the dispute, warning China would create uncertainty if it conflated trades and diplomatic disputes.
“If a perception emerges that there is a conflation between political issues and a trading relationship then that can create uncertainty for many trading partners,” Mr Morrison said.
“I’m sure that isn’t something China is hoping to achieve here.”
He pointed out India and Japan were also large buyers of Australian coal, saying the industry has a diverse customer base.
According to Trade Minister Simon Birmingham, the reports are concerning.
Dozens of ships carrying Aussie coal are currently stranded off the coast of China for months due to supposed environmental problems.
But overnight, The Global Times reported Chinese power plants had been directed to stop taking Australian coal.
“We see these reports and obviously are deeply troubled by them,” Senator Birmingham said.
“They, if true, would indicate discriminatory trade practices being deployed by Chinese authorities and we would urge them to rule that out swiftly.”
