53 Australian coal ships remain stranded off China's coast despite fifteen countries, including China and Australia, have signed the Regional Comprehensive Economic Partnership (RCEP) in November 2020, which is the world's largest free-trade deal aims to cut tariffs in order to enhance the economic partnership between China, Japan, Australia, and other 12 South Asian countries. A total of fifteen nations signed the RCEP, which includes 2.2 billion people with a combined GDP of $26.2 trillion.
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| Fifteen RCEP Countries |
However, this deal is not proving to be lucrative for one of the members of the quad group, Australia. The Quad group includes four countries, India, America, Japan, and Australia, formed to enhance the economic partnership, however now signing the defense and logistics pact bilaterally to counter the growing Chinese aggression in Asia and especially in the South-China sea.
According to The Guardian, 53 Australian vessels have been waiting to leave for more than four weeks, while other shipments of coal from different countries have delivered their loads. In China, there's a high demand for coal not only in industries but also in the daily routine, according to Chinese state media.
China has banned Australian coal due to Australia's continuous pressure for the independent investigation of the origin of Coronavirus in Wuhan. Although countries signed the free-trade deal, it is not beneficial for Australia due to Chinese aggression. The Guardian reports that shipments carrying hundreds of millions of tonnes of Australia's coal, some of it already paid for, remain stranded off the coast after the Chinese government suddenly banned imports in October.
According to ABC News, China's state-owned media, the Global Times, have also confirmed a ban on Australian coal imports amid rising tensions between the two countries due to political disagreements. Australian coal exports to China were worth $13.9 billion in the year 2019. Banning coal imports from Australia is a direct economic attack and message to a country like Australia who is somehow reliant on its coal exports. In China-Australia trade, Australia is a beneficiary as there is a trade surplus for Australia. China is importing coal from Indonesia, Russia, and Mongolia, which could take a large share from Australia, reports ABC News.
