China's import restrictions on Australian coal boomerangs, escalate energy crisis: Reports

With China putting a halt to coal imports from Australia to bring it to book for seeking an inquiry into the COVID origin, the country has faced a drastic setback with Beijing experiencing major economic turbulence for its punitory measure. The country has been experiencing the worst power crunch in years due to a shortage of coal.

The Xi Jinping-led government had intended to hurt Australia's economy pressing it to knuckle under Chinese policies which have proven to go against its own ways.

Soon after the Chinese ban in 2020, Australia has shifted its energy exports from the Asian superpower to its neighbouring energy-hungry countries like India. Subsequently, other countries like South Korea have intensified the import of coal from Australia. Therefore, Chinese restrictions failed to affect Australia as expected.

China struggles to replace Australian coal

China, on the contrary, has slacked behind in substituting the Australian coal and has unsuccessfully endeavoured to boost imports from Indonesia, Russia, South Africa, and even the United States to cater to its needs. As per reports between January and August this year, Indonesia contributed to nearly 50 per cent of China's thermal coal needs. 

Italian political advisor and geopolitical expert Sergio Restelli writing for InsideOver shed light on how an unexpected ban on Australian imports drove a tremendous deficit of coal in China, leading to an unprecedented energy crisis that has paralyzed the global manufacturing heavyweight.

"Beijing is scouting for coal from wherever possible to meet the energy demand. With the failure to procure the required coal, Beijing in a humiliating loss of face has had to turn to Australian coal," he said.

China on line as energy deficit looms country: Experts 

As per the Italian geopolitical expert, China has no option left as the nation's Industrial output has been hard hit by the shortage and rise in the price of coal. Experts also said that China has no intentions to ban the import restriction soon.

"Chinese have done themselves a lot of reputational damage in the way they have quite transparently tried to coerce Australia with economic sanctions," reported ANI quoting Shiro Armstrong, an Associate Professor at the Australian National University.

China's ongoing energy crisis has impacted its economy and higher electric tariffs will adversely affect the situation, thereby reducing economic growth and aggravating the ongoing slowdown.

"Energy-intensive industries will be most affected by electricity rationing. The combined share of the industrial sector in affected provinces with power rationing is about 14 per cent of Chinese GDP," Senior Asia economist at the Commonwealth Bank of Australia Kevin Xie said.

(Inputs: ANI)

(Image: AP/ANI)