Australian wool traders worry declining interest among Chinese buyers in a wide range of Australian products may lead to their abandonment of Australian wool. As per China Textile, Australia plans to increase its wool export quota to China by 5 per cent in 2021.

Australia’s wool exports account for as much as 40 per cent of the world’s total. More than 98 per cent of the wool produced in the country is exported, of which 75 per cent 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.

Another worry for Australian businesses is 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.