Papua New Guinea is the largest economy in the Pacific Islands, accounting for 45 % of the region’s overall economic output, and as much as New Caledonia, Guam, French Polynesia and Fiji combined. Over 90% of exports are linked to energy and mining industries, but imports are more diverse. With a strong link to Australia, the economy is less dependent on Chinese imports than others in the region. Contrary to other islands in the region this has also not changed. However, the status quo should not be taken for granted as we are beginning to identify an emerging shift, with Chinese export value to Papua New Guinea outperforming other major trading partners.
Posts tagged as “Australia”
China is by far Australia’s most important trading partner. Dependence on China has increased and not decreased. Australia draws around 30% of its imports from China, up from about 21% in 2013. On the export side, China’s share of the value of Australian exports has fluctuated between 34% to 44% over the last 10 years. Most of that is driven by iron ore exports. This article looks at the trading relationship and mutual dependence between Australia and China.
Dependence entails risk. Reliance on a single supplier or source for imports of a certain raw material or intermediate product makes supply chains vulnerable to disruptions and geopolitical tensions. About 12% of world trade is in product groups where a single country has a share of more than 50% of exports of that product. In about half of all cases, China is the dominant exporter, but not everywhere. This article looks at which countries dominate exports for certain raw materials, intermediate and finished goods.
With shipments of Australian coal to China starting again after a two-year de-facto import ban, this article focuses on the trends and outlook relating to international coal flows. Japan, China, India and South Korea collectively account for over half of worldwide coal imports, while Australia, Indonesia, the Russian Federation and the United States account for three quarters of worldwide coal exports. In the last two years Australia has largely been able compensate for the loss of the Chinese market, which accounted for 26% of total coal exports in 2019. Changes in demand and production patterns are likely to affect overall flows as well as market shares between countries.