The federal government is seeking clarity from China about its shock decision to impose new tariffs on Australian coal.
China will impose from October 15 a levy of three per cent on coking coal imports and six per cent on lower grade thermal coal in a move designed to boost its local coal industry.
The protectionist strategy will see Australian producers hard hit and comes as free trade talks continue between Canberra and Beijing.
Trade Minister Andrew Robb says he is seeking clarity via Australia's post in China.
But he stressed there would always be a strong place in the market for Australian high-grade, lower emission coal.
"This highlights the importance of concluding high quality Free Trade Agreements to shore-up our competitive position," he said in a statement on Thursday.
"In negotiations, our starting point is to always seek zero tariffs for Australian exports, but these are negotiations."
Opposition trade spokeswoman Penny Wong called for the Abbott government to tell Australians when it became aware of this measure.
Senator Wong wants the federal government to explain the impact on Australian exporters and the economy, and outline its response.
"Labor supports negotiations to secure a high-quality free trade agreement with China which gives Australian exporters real benefits, rather than a sub-standard deal designed to give Mr Abbott a political trophy," Senator Wong said in a statement.
"For now, Mr Abbott and Mr Robb owe Australians some answers on this new tariff on Australian exports."
Mr Robb says China is expected to consume nearly a billion tonnes more coal per year by 2020 so demand for high-quality coal imports will continue.
"We currently provide around 25 per cent of China's imported coal and we are confident Australia will continue to be a competitive supplier in the years ahead," he said.
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