Australia’s trade war with China could very well extend into 2021, as the tiff has cost the OZ economy only $3 billion in its commodities sales last year, suggesting a relatively small impact, Bloomberg reports, citing China Customs data.
Key takeaways
“That’s the value of Australian exports lost in 2020 compared to the prior year, and covers commodities from copper and coal to wine and lobsters that are now subject to trade restrictions by Beijing.”
“Beijing’s trade reprisals have stopped short of targeting the commodities most crucial to its own economy — iron ore and liquefied natural gas. They’re also Australia’s biggest earners.”
China is Australia’s biggest trading partner and the diplomatic ties between the two nations have soured after Canberra barred Huawei Technologies Co. from its 5G network. Also, Australia strongly opposing China over the national security law in Hong Kong.
Market reaction
The aussie is under pressure so far this Friday, thanks to the downbeat Australian Retail Sales and broad US dollar rebound.
At the press time, AUD/USD sheds 0.15% to trade at 0.7750.
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