According to a report by the Australian Broadcasting Corporation on June 7, the export of Australian citrus fruits to China has been blocked recently, and a large number of citrus fruits have been stranded in the port. At the same time, Australia and China began to experience an embarrassing situation of oversupply.
China is Australia's main export market for citrus fruits. According to 2019 data, 40% of Australia's citrus exports come from citrus imports from China.
Despite Australia's bumper citrus harvest this year, most of the citrus is currently stranded in port. Daniel, head of Australia's largest citrus trader, said it was the thaw in China-Australia relations that affected the Australian citrus market.
Today, these citrus fruits can only be digested within the Australian market. Oversupply, falling prices, traders and farmers lose a lot. Daniel added that the Chinese market is too critical. While demand remains strong in Japan and the Middle East, it cannot replace China. In addition, consumer demand in China's citrus market has increased, and it is an indisputable fact that Australians want to return to the Chinese market.
Despite traders expressing their wishes, the Morrison government has undoubtedly not listened. According to media reports, since Morrison hopes to advance the election, he must fan the flames and constantly incite China-related issues to win support. This means that it will be difficult for him to take the initiative to ease China-Australia relations, and Australia's damaged industries will continue to be damaged.
In response to this situation, Australian MP and Deputy Leader of the Labor Party, Richard Maas, fiercely criticized Morrison. He believes that the Australian prime minister's performance in China-Australia relations is "the worst in nearly fifty years" and can be described as "incompetent". Morrison has disrupted Sino-Australian trade and even lost the ballast stone of the relationship between the two countries.
As we all know, the Morrison government has been actively undermining China-Australia relations since last year. Australia has made negative remarks on a series of China-related issues without looking back, pointing fingers at Chinese affairs, and the relations between the two countries have gradually cooled.
Since then, China has also taken a number of countermeasures against Australia, imposing tariffs on many problematic Australian goods or simply suspending imports. You know, China is Australia's largest market. If China stops cooperating, Australia's timber, wine, cotton, lobster, beef and other industries will suffer a fatal blow.
Of course, the reality is that no matter how much money other industries lose in Australia, the Australian government can earn back by exporting resources such as iron ore. Especially in recent months, iron ore prices have reached new highs, and Australia can still make money.
However, everyone knows that putting eggs in one basket is dangerous and Australia cannot rely solely on iron ore. Although iron ore is lucrative, it can only provide employment for a portion of the population. If it relies only on iron ore and ignores other industries, Australia will soon be in trouble.
As a result, Australia has been looking for alternative export markets for months. For example, Australia focuses on India and Vietnam. These two countries have large populations and developed industries. However, due to problems such as cheap markets and consumption habits, it is difficult for products such as barley and beef to open the local market.
In order to return to the Chinese market, the desperate Australia used all means and even began to fight wits and courage. Recently, some media found that some lobsters from Western Australia were quietly repackaged and transported by land, and these lobsters were imported through gray channels. Australian products do not hesitate to enter China through gray channels, which shows the importance of the Chinese market to Australia.
With last month's cotton harvest, Australia fears it will have to travel to Southeast Asia to compete with the United States for the market. Now, the citrus harvest has given Morrison that confusion. As long as the Australian government continues to take a tough stance and continue to point the finger at China, the Chinese market will not welcome Australians, and Australian products will have to drift at sea.