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Revealed: China’s plan to wean itself off Australian iron ore

Revealed: China’s plan to wean itself off Australian iron ore

For a China determined to punish Australia, the windfall gains delivered to Canberra from surging iron ore prices are intolerable.

The iron ore trade is stiffening the resolve of the Morrison government in dealing with Beijing. Bloomberg

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To call it ironic doesn’t quite capture the moment. Just as Beijing is punishing Australia with trade sanctions, sales of the one commodity the Chinese can’t target, iron ore, are delivering billions in windfall gains to miners, their shareholders and the government in Canberra.

Iron ore exports have broken records for volumes and prices in recent months, largely because of the strong rebound in the Chinese economy and the lack of alternative suppliers for the country’s steel makers.

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Richard McGregor
Richard McGregorColumnistRichard McGregor is a senior fellow at the Lowy Institute in Sydney.
Peter CaiWriterPeter Cai is a columnist.

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Original URL: https://www.afr.com/policy/foreign-affairs/revealed-china-s-plan-to-wean-itself-off-australian-iron-ore-20210520-p57tir