Why the CCP did not sanction Australian iron ore

Image from https://www.yerepouni-news.com/

On Dec 14, 2020, Guancha.cn, a CCP-backed news outlet, reacted to Deloitte Australia partner Chris Richardson’s comment on China’s tariffs hikes on Australian iron ore.

Below are some key points of this article.

On Dec 11th, the main contract price of iron ore futures from Dalian Commodity Exchange broke above 1000 rmb mark and once rose to 1042 rmb/ton, a record high in the past 7 years.

Having dealt with trade issues and setbacks against China, Australians are beginning to feel happy when hearing this news. Some Australian economist deemed China’s trade aggression against Australia as “smart politics” but ” dumb economics”.

Chinese analysts have explained that there are several reasons behind the ever-increasing price of iron ore. Demand growth and market speculation fostered the bullish trend, but other than that, foreign monopoly provides momentum for it.

Why hasn’t China sanctioned Australian iron ore?

The article provided this as an explanation: China has always been looking for a substitute for Australian iron ore. Given the relatively small global iron ore market and the rising iron ore price, this is a double-edged sword that China will have to weigh the cost it is willing to pay to achieve its external agendas.    

The soft tone of this article implies that China cannot afford to not purchase iron ore from Australia at this point.

Nonetheless, Australia should not be complacent as the CCP never intended to trade fairly with the world or embrace the idea of peaceful coexistence. The world needs to realize that for the CCP, “win-win” and “fair trade” have no meaning – it is always about a win for the CCP at the expense of everybody else.

Author: rosabona

Editor: XO酱

Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the views of Gnews.org

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