Australia reported a record trade surplus in the 12 months ending in June due to surging exports to China, which comprise almost half of goods exports despite rising political and trade tensions between the countries.
Exports to China hit a record A$14.6bn (US$10.4bn) in June, underpinned by the country’s economic reopening and Beijing’s aggressive stimulus plan after the coronavirus lockdown. The measures have sparked a surge in demand for Australian commodities, such as iron ore and coal, with exports to China comprising 48.8 per cent of all goods exports in June, up from about a third in February, and worth 8.5 per cent of gross domestic product.
Trade with China has supported an economy that is being ravaged by rise in new Covid-19 infections in Melbourne. Most businesses in the country’s second most populous city have closed for the second time in four months and a nightly curfew has been imposed to try to suppress the virus.