China's premier Li Keqiang may have declared that he has accepted the concerns of Prime Minister Malcolm Turnbull about China's use of quality standards to reject shipments of Australian coal. He may also have gone out of his way to praise the quality of our coal at the East Asia summit in Kuala Lumpur on the weekend.
But listening to and acknowledging concerns and making soothing comments are much easier than taking politically painful action on the issue, particularly as the issue has been festering for months. Mr Turnbull has done well in bringing up the issue at the highest political level, but his is the latest in a series of protests on this matter. Australian exporters have complained repeatedly that Chinese testing is inconsistent, lacks transparency and did not appear to comply with global standards, all with little effect on official behaviour. 
Coming after the imposition of a 3 per cent tariff on imported coking coal and a 6 per cent impost on steaming coal in   October of last year, the suspicion remains that the quality controls, which have resulted in coal shipments being turned away, are more about protecting Chinese struggling coal producers than cleaning up notoriously polluted cities.
China is by no means alone in enforcing quality standards on imports in a way that helps local producers. Non-tariff barriers to trade are a major stumbling block in all trade negotiations. But this has all occurred while a free trade agreement between the two countries is being concluded. After a troubled history including Leader of the Opposition Bill Shorten threatening to block ratification of the agreement, with Labor complaining that hordes of Chinese workers would come to this country as a result of the deal - fears dismissed as imaginary - the FTA is expected to be in place before Christmas.
By rejecting shipments of coal on alleged quality grounds, the Chinese government may be both appeasing domestic coal producers as well as being seen to be doing something about pollution. Chinese cities have become so choked by smog, as this newspaper has reported, the environment is not just an issue for activists in that country, but a top, mainstream political concern.

Recognised higher quality
However, Australian coal is generally acknowledged to be of higher quality than coal from its two major export competitors - Indonesia and South Africa - as well as most of the Chinese domestic production. If the aim of the testing is to reduce pollution, as the Chinese assert, then the result could be for more Australian coal to be used. There have also been reports that our coal has been tested for material other than the ash and coal that are the subject of the new standards, and producers have been threatened with fines that could easily become defacto additional import tariffs.
Although perhaps not formally in breach of global trade rules, the use of tariffs and quality standards smacks of the protectionist policies that made the 1930s depression such a terrible event. They are to be particularly deplored when the two countries are supposed to be cutting back all trade barriers.
Another aspect of this issue is that it is further evidence of how oversupply in the coal market, following a major price boom, has swung market power back towards the buyers, with Chinese actions complicated by domestic concerns over pollution, and protectionism. But demand has also declined as the Chinese rate of growth undoubtedly slows, despite the Chinese premier's assurance that the economy would continued to grow at a about 7 per cent. In the first six months of this year Chinese coal imports were down 37.5 per cent overall, compared to the same period in 2014.
The outlook for Australian coal is certainly not promising no matter what else may happen, but it would be disappointing if China's commitment to the FTA between the two countries did not extend to more than assurances at a conference.