Karma hits China after Aussie export ban

Karma has bit China in the backside, with its decision to banish Australia and blockade crucial exports causing blackouts in cities across the nation:

The towering skyscrapers in Changsha have stopped glowing.

The provincial capital of Hunan and home to more than 7 million people is without street lights, too.

Lifts have been switched off, forcing workers to scale dozens of flights of stairs to the office in the bitter cold.

In Yiwu, a city of 1.2 million in China’s far east, factories have slashed working hours by up to 80 per cent. When workers leave at night, the streets are dark.

The problem is two-fold. The first part of the problem is that China has emerged from the worst of COVID-19 relying heavily on electricity to fuel work through the winter which, in many parts, features temperatures below zero.

The second part of the problem is that China banned Australian coal…

The Financial Times reports dozens of Chinese cities and at least four provinces have imposed rules on electricity use that include residents and businesses cutting how much power they use.

One of China’s largest energy groups told the publication: “The import curb is enough to change the industry landscape.”

“Many local power plants depend on Australian coal due to its higher efficiency and now they are having trouble finding an alternative,” said the director of China Huadian Corporation.

As far as I am aware, I am the first person in Australia to propose an export tariff on iron ore exports to counter China’s trade embargo on Australian goods (see here, here and here).

China’s extreme dependence on iron ore to fuel its development means Australia holds the whip hand on trade.

The federal government should use this leverage to force China to end its aggressive trade posturing.

If China is not prepared to play fair, neither should Australia. Time to hit the bully where it hurts.

Unconventional Economist
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  1. Hernando da Silva

    Modern power plants turn the coal into a fine dust before mixing it with air and burning it.

    Australian coal is well-suited for power plant use, as it is easy to grind into small particles and has few hard stones in it which damages equipment.

  2. We stayed at the Oaks in Mackay it’s shit it’s chynese and the whole chain is on my boycott list. I will research a list in the new year

    • Once (and only once) I stayed in a second tier hotel in China – in Wuhan, as it turns out – and the hotel’s complimentary toiletries pack included a condom. Just the one, mind, but that told me enough.

    • “… shit it’s chynese and the whole chain is on my boycott list.”

      Good that this boycott is related to trade piѕѕ-contest otherwise one could easily mistake that boycott based on the ethnicity of the ownership in “own” country is facially motivated (facial with an R)

    • Shades of MessinaMEMBER

      Isn’t the Oaks owned by the Minor Group from Thailand ?.

      Unless of course it’s all just “Asian”….

      • I don’t care where it’s from. It’s chynese. Troll all you like that list is coming and we will see who owns what

  3. Display NameMEMBER

    I hear that Chinese companies are complaining about steel prices as well, These are long game players? Shot themselves in both feet, whats next?

  4. Just call that new tariff something like “Minerals Resource Rent Tax”. Align it with the Income Tax Schedule. What’s that top rate over there? 48% ? Sounds about right.
    That way, it doesn’t target anyone in particular. Nation building stuff and all of that.

  5. MountainGuinMEMBER

    I wonder how the average Chinese punter views this. While the CCP has its media narrative, freezing in winter and losing income when you have coal queued up at the ports must be a pretty big frustration.

    • TailorTrashMEMBER

      And they won’t let the coal sail away either
      ….just waiting for strayas surrender

      • I'll have anotherMEMBER

        How does that work exactly? We have been paid, it’s been shipped, it’s the middle man holding the bags (coal) that is stuck with it. How can the Chinese stop him from leaving? Guess he has nowhere to go?

          • I'll have anotherMEMBER

            Oh right. Pandemic control.

            Well in that case test the crew, wait for results, if infected begin quarantine adminstration processes.

            That excuse won’t fly forever and Australia has, in my opinion, an obligation to those sailors. Will see how long we put up with that nonsense. Why is it just the coal transport that requires pandemic control.

            Keeping them locked on boats under a guise of disease control will not end well for China. That seems certain.

            The media needs to do more to explain this situation and we need to start applying pressure on the behalf of those sailors.

            Aussie citizens or not, we do have a duty of care to them I feel.

        • lolol wasn’t saying I accepted it (it’s bs).

          I can’t understand the Chinese thinking on this, if they have paid; makes no sense to block what you own!

          Unions etc say they can do nothing (legally I guess) and don’t expect scumo to step in as he has nothing to gain so we know he’ll do nothing.

          edit: as to the D of C, I agree, but again most Austrlians wouldn’t give a F unless their iPad /phone was delayed.

          • I'll have anotherMEMBER

            Well another feather in their human rights cap, I suppose.

            Lock up a bunch of hapless sailors just trying to do their job.

            You’re probably right, most Aussies won’t give a shit, but this one does.

            Wonder what Drew Pavlou would have to say about it? Might get some attention if him and his mates go make some noise about it at a Chinese embassy or similar.

  6. The leftists keep telling me that renewables are cheaper than coal, so the solution is easier for China — just rely on renewables instead!
    (Yes, that is sarcasm regarding the accuracy of such claims).

      • If one completely disregards their intermittent nature they are cheaper. Once one adds a battery to the mix to ensure that power is available on demand they are way more expensive.

        If that wasn’t the case then why would China continue to build new coal fire station?

    • SnappedUpSavvyMEMBER

      Stan Grant and friends have for years gaslighted australians with BS about how chyna is leaving us behind in renewables yet they will be lucky to have 10% of their energy come from renewables and a couple boats stuck off the coast results in dark cities LOL

      • What sort of person turns on the TV, sees Stan Grant coming through and says to themselves “I’m going to be told something honest and intelligent today”?

  7. Australia doesn’t have to do anything : the ‘Wolf Wankers’ will move to ban Australian iron ores next, and then the Chinese economy will crash, and Xi will be toppled.

    • No he won’t be.

      He controls his party and the military.

      Any attempt to remove him will be brutally crushed.

      The internal propaganda against Australia will simply be turned up a notch by Xi and his cronies.

    • Xi has already made the decision to ban Aussie coal, hence the Smandou project & the takeover of the mines in Dem Rep of Congo just the other day, more of this to come, no doubt. So we have nothing to lose (except forcing China to make the changes they need to but have mostly failed to do, I’d rather we just let them continue so they can’t blame foreigners etc)

  8. Myabe put on iron ore (etc) tariffs, to help pay for their unfair play…

    But, I’d like to think that other nations are going to reduce how much they let China benefit from WTO rules, and the peace that comes with them – that might be enough problems for them…?

  9. “As far as I am aware, I am the first person in Australia to propose an export tariff on iron ore exports to counter China’s trade embargo on Australian goods (see here, here and here).”

    Oh, I see, that’s why my comment with a link to a slug in the Parliament proposing this very same thing was deleted the other day… oh, well…

    A key mistake most westerners and those heavily biased will make is to assume that economic suffering in the third world countries, particularly in countries that have millennia old culture of compliance and conformity will cause uprising and political turmoil.
    It will cause it, no doubt, but not even half to that expected. Additionally, when countries are attacked by foreign countries, it tends to homogenise the nation. It is a price Chinese are willing to pay short term.
    Australia has 0 to benefit from “export taxes” as weaponising exports never yield more than what it takes (try goggle/And Roid experience). If China reorients to Russian coal and energy (link removed) it will not have a motivation to come to us again. Oh, well, perhaps it is good for greens and for Tesla drivers charging stations that we have surplus coal.
    Diverting itself from being a US lapdog is much better proposition. Focusing on what matters to Aussies, not to our overlords and big pharma/military/conglomerates

    • One of the largest nations on earth mobilised itself into a communist regime during an invasion and a civil war against an American backed KMT. I think that’s some kind of proof of people rising up.

      • Have you read any Chinese history?

        KMT was the government. The communists were a rabble which was financed and armed by Stalin. The people of China were too busy trying to survive to be involved.

        And America withdrew support from the KMT due to the government’s corruption.

        I’d suggest you start by reading some books and not just accept the bull-dust propagated by the CCP grifters and chancers…

    • Not going to happen. Chyna is Done!
      Who gives a toss if the Chinaman cold and hungry in China and have singular thoughts. It’s their country.
      But they can eff off if they think they can bully their way around…

      • You mean bully like sailing their navy off the shores of Sydney or Melbourne?
        (sailing them near Brisbane Uni will be considered home run, eh?)

        How’d you feel if Xina started peddling the idea to the world that Anglo Aussies are invaders and that NT and FNQ should be independent with QLD/VIC/NSW having to have autonomous regions and that perhaps Aboriginal minority is subjected to relocation, incarceration and stripping of basic human rights?

        China saw threat from Aus the moment we chose to be a barking proxy for foreign interests.
        Vietnam should’ve been the last straw for Aussies being a historical cannon fodder for overlords in UK or US. but I guess not…

        • I'll have anotherMEMBER

          Pretty sure we knew it was coming. The other 4 or so frigates, couple of submarines, nearby airbase and army barracks would have been more than a match for a single Chinese boat. They were there because we let them. There was no superior bullying going on.

      • Don’t matter, what matters is that the comment was deleted for suggesting someone also had the same idea.

  10. What is the local media saying about the power outages over there? Seems like a good way to rile up some political support for posturing harder if they can blame Australia well in their media. Seems like China is always playing a longer game than the west.

  11. Chairman MeowMEMBER

    Put a tariff on iron ore, LOL. Because KRudd was so successful increasing taxes on the miners wasn’t he?
    Japanese went without heating and lighting not so long ago following the Fukushima incident when Japan shut down its nuclear reactors and they didn’t overthrow their government.
    Dream on you kiddies

      • Chairman MeowMEMBER

        And the Chinese don’t? The Chinese government has massive approval from their population but off course on MB facts which don’t fit the scare campaign get dismissed as “Chinese propaganda”.
        USA imports from China have apparently risen by 26% according to recent figures so I’m sure they’d be all for Australia putting tariffs on ore, they’ll gladly pay more their imports for our sake

  12. Surely you mean China blocking crucial imports (aka preventing ships unloading in Chinese ports) NOT crucial exports!!! It is Austria that is (or was) exporting coal to China which is the importer.

  13. You seem to think that the Chinese regime (CCP) gives a stuff about its citizens. This is a regime that has killed, deliberately or recklessly, well in excess of 100M of its people.

    As Mao said after being informed of yet another million or so dead, “The revolution is not a tea party”.