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.
“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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.