Australian exports to China plunged in August

The Australian Bureau of Statistics released the latest data on September 3, showing that the country's import and export surplus in July was only 4.607 billion Australian dollars, a 36.6% year-on-year decline and a sharp decrease of 43.8% compared with 8.202 billion Australian dollars in June.Exports fell 4% in July to A $344.96, while imports jumped 7% to a $29.89 billion.

As for why exports have done so badly, it may also have something to do with over-reliance on China, its biggest trading partner.

In July and August this year, Australia's export performance to China suffered a rare "Waterloo".As a result, a number of Australian exporters are pleading with their governments to manage relations with China, and hoping Canberra will keep its mouth shut and say less.The export-dependent businessmen are worried that a failure to maintain friendly relations between China and Australia will hurt their income sources, business Australia reported on September 9.

China's imports from Australia fell 26.2 percent in August from a year earlier to $8.81 billion, while total Chinese imports fell 0.5 percent in August, the Australian reported, citing the latest data released by Chinese customs on Monday.China's import from Australia fell by more than any other country.

The article also pointed out that in July, according to the Australian Bureau of Statistics, Australia's merchandise exports to China fell 16% year on year, including a drop in iron ore and coal exports.This is a big shift from Australia's strong export sales to China between March and June.

But Chinese imports from Australia fell just 7.2% in July, according to official Chinese data, likely reflecting time delays and currency movements between the two countries.In summary, data for July and August from Australia and China show a sharp short-term decline in trade between the two countries.

Earlier this year, China imposed tariffs of about 80% on barley imports from Australia.More recently, China announced an anti-dumping investigation into wine imports from Australia.

While the investigation could take up to a year and a half, there are concerns that news of the investigation could hit exports early as Chinese buyers choose to buy less Australian wine because of concerns about rising prices.

Since this year, Australia's relationship with China continuously new lows, because Australia calling for will investigate the source of coronavirus, Australian federal government refused to acquisitions lions dairy and beverage company in China, as well as the Australian federal government to take action to block the Australian states to reach a deal with foreign governments, including the state of Victoria to support China's "neighbourhood" initiative, feel is in China

While analysts do not want to read too much into one month's trade figures, the figures are being closely watched for signs of whether the worsening political tensions between Australia and China will be reflected in exports to China.China is Australia's largest trading partner.