"While the “Five Eyes” English-speaking nations have put up a rhetorical united front against China, they have been eating each other’s lunch in their China trade. The biggest loser has been Australia, the most confrontational with Beijing after the United States, but also the most reliant on trade with the Chinese.
As Washington denounces China’s “economic coercion” against Australia, the US and Canada have found it too hard to resist the opportunities to substitute Australian supplies with their own goods. US exports to China of wine, cotton, log timber, wood and even lobsters all rose significantly in the past year as Beijing either held up product shipments or rejected them from Down Under.
The most impressive has been coal, with American exports rising from practically zero to become a significant supplier since late last year. According to a new report by Australia’s Department of Industry, Science, Energy and Resources, US coal has continued to take over Australia’s share in the Chinese market, followed by Canada and other global coal exporters including Russia, Mongolia, Colombia and the Philippines.
The report notes that Canadian coal and related products are increasingly drawn to China, as the latter seeks substitutes for Australian production. While Australia has been diversifying coal exports to other countries, with India being a potential big buyer, the new trade has been slow primarily because of the recent coronavirus outbreaks in the country.
