Iron ore is saving Australia’s commerce with China. How lengthy can it final?
Now, one commodity is almost single-handedly keeping the trade relationship afloat: iron ore.
Diplomatic relations between Australia and China fell into a deep chill one year ago, after Prime Minister Scott Morrison called for an independent investigation into the origins of the Covid-19 pandemic which threatened to challenge Beijing’s narrative of the viral outbreak.
The Chinese government said Morrison’s request was “political manipulation,” and since then Australian exports to China have faced growing barriers to entry.
Overall Chinese investment in Australia plunged 62% in 2020.
And tensions are still getting worse. On Thursday, Beijing announced the “indefinite suspension” of the China-Australia Strategic Economic Dialogue, which only met for the first time in 2014.
But experts said that unlike wine and coal, it would be tough for China to find new sources of iron ore any time soon. That means Australia’s largest source of trade revenue may be secure.
“Australia is the largest…
