Australia’s wool exports account for as much as 40 percent of the world’s total. More than 98 percent of the wool produced in the country is exported, of which 75 percent are sold to the Chinese market. It can be said that Australian wool is extremely dependent on the Chinese market. If the Chinese market is lost, the country will face huge economic losses.

Australia’s wool export quota to China will be increased by 5 percent in 2021, but with Chinese buyers showing less and less interest in a wide range of Australian products, Australian wool traders are also beginning to worry that Chinese buyers will “abandon” the wool.

 

A further worry for Australian businesses is that if Chinese buyers stop choosing Australian wool, wool from countries such as New Zealand will quickly grab Australia’s lost market. It is reported that in January this year, China and New Zealand signed a new agreement to upgrade the China-New Zealand Free Trade Agreement. For Kazakhstan, this is also a good opportunity to expand wool exports to China.