Australia has repeatedly tarnished China's image internationally and sought to impose economic sanctions on China. China immediately retaliated. Australian ships that were once busy in Chinese ports have vanished and are unable to recreate the glory of exporting $3.8 billion of iron ore to China because of the arrival of India's 510 tonnes of iron ore.
Australia's strongest competitor to iron ore has quietly emerged. New friends remember that *** can not only easily browse past articles and**, but also get the latest information in time.
Prime Minister Scott Morrison has a tough attitude towards China and is unwilling to let down his vigilance against China. He has been warned by China that if China is insisted on being seen as a threat, it will be difficult to restore the relationship between China and Australia.
However, he stood firmly with the United States, and his anti-China rhetoric against China was endless. Even, he is also conducting anti-dumping investigations on Chinese exports behind his back.
Morrison's actions have provoked a strong backlash from China. At one time, Australia was China's largest iron ore merchant, making a huge profit from the deal every year.
However, Australia does not cherish this partnership and not only eats China's food, but also wants to spoil China's pot. China could not tolerate this and began to restrict the import of Australian iron ore and strictly check the quality of Australian iron ore at the port.
In the absence of Australia, a major businessman, China can still secure iron ore through cooperation with Brazil, India and other countries. These countries are seeking to cooperate with China to boost their domestic economies and industries.
Australia's iron ore market share is being eaten away by other countries, and the domestic ore mining industry is also suffering hard. The reason why Australia has chosen to stand firmly against China lies in its historical and cultural background.
As a country colonized by Britain in the early days, more than 70% of Australia's population is white, and many people have European blood in their veins, yearning for the prosperity and freedom of Western countries.
In their view, China is just a partner, and the United States is their "big brother" in the same line, so they will naturally follow the pace of the United States. However, Australia did not foresee such serious consequences for losing China as a major buyer.
In addition to iron ore, China has also restricted the import of Australian agricultural products such as wine, shrimp and barley. In the past, Australia could have a large surplus with China, but now there is no market for these goods, and the markets of other countries are saturated and can no longer accept Australian exports.
When Australia faced a difficult situation, it turned to the United States for help, but the United States could only say that it could not help. The U.S. has its own abundant resources such as iron ore and red wine**, and does not need to import from Australia.
If you buy a lot of Australian goods, it may affect the balance of the domestic market in the United States, and the United States has no intention of sacrificing itself. At present, companies in Australia are beginning to pressure Morrison, urging him to restore relations with China as soon as possible.
However, China has not been affected much by the loss of Australia's leading partner and is ready to import iron ore from other countries. Countries such as Brazil and India, which have long been waiting to carve up Australia's iron ore market share, are now signing large orders with China to export large quantities of iron ore to China in the coming years.
India has successfully shipped 5.1 million tons of iron ore to Chinese ports in March this year, becoming the new darling of China's iron ore market. India's iron ore exports to China jumped 88% to 44.8 million tonnes last year.
However, India's domestic market demand is also very large, and iron ore export restrictions may be implemented in the future. Brazil's iron ore quality is better and more abundant, and in 2020, the amount of iron ore imported by China from Brazil reached 235.7 billion tons.
Australia's formidable adversaries have quietly emerged, no longer Brazil and India, but China. Yes, you heard it right. Despite the huge demand for iron ore in China, China will not always develop at a high rate at the expense of the environment.
With the introduction of sustainable development strategies, Chinese companies have made energy conservation and emission reduction a top priority. With the domestic market saturated and even a surplus of steel, the demand for iron ore is likely to continue to decline in the future.
By then, China will likely become the world's largest iron ore country. At present, the demand for steel in China has been on the rise due to the influence of industries such as automobiles and real estate.
Although China has abundant high-quality iron ore resources in its territory, it must take the shortest path in order to quickly catch up with the United States. China intends to match the 50 years of U.S. progress in 10 years, but this will come at a cost.
However, China's development is slowing down, and environmental protection has become the most important foundation. China's ore mining and smelting technology is also among the leading in the world.
China has already started planning for its steel industry, aiming to increase its iron ore self-sufficiency to more than 45% by 2025. This is inseparable from the joint efforts of all walks of life in China.
Once this goal is achieved, China will gradually reduce its dependence on third-party iron ore. At that point, Australia's proud ore export industry will be insignificant.
At present, a number of domestic enterprises in China have responded to the call and agreed to limit production and reduce emissions. In recent years, although India has exported a large amount of iron ore to China, India's domestic iron and steel companies have begun to demand that they stop exporting iron ore.
Because most of the raw materials are given to China, some Indian steel companies need to pay high costs when purchasing, and they can't make money at all. This is also one of the important reasons for the international iron ore *** in 2020.
China will gradually reduce its dependence on imported iron ore and plans to achieve carbon neutrality by 2060. At that time, China will no longer need to rely on foreign raw materials and get rid of its dependence on countries such as Australia.
At present, Morrison is actively seeking understanding from China and hopes to open the Chinese market again. But he has smeared China, which no longer needs Australia. Therefore, Australia's share of iron ore exports to China will be divided between Brazil, India and other countries.
Australia was optimistic that the global steel industry would pick up, and iron ore would continue. Australian iron ore is expected to receive large orders in 2020-2021, with exports expected to reach $136 billion.
However, China has shattered its illusions by refusing to pay for Australian iron ore. It will be interesting to see how Morrison will achieve his goals. China has never taken the initiative to sanction other countries, but only responded to hostile behavior.
The United States suffered heavy losses in the first war, but Australia still dared to challenge China. Morrison's risk-taking behaviour is like a cocoon, and once China no longer needs to import iron ore, Australia will face the most severe competitive pressure.
China's iron ore has advantages in quality and quantity, which will have an unprecedented impact on Australia's ore export industry. As long as China adheres to the strategy of sustainable development, it will have a bright future.
The situation in the world is changing rapidly, and enemies one second may become friends the next. If Australia continues to be an enemy of China, it will face a harsher counterattack.