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Significance
In 2020, China’s trade sanctions cost the Australian economy AUD19bn (USD14.5bn), with coal exports hit particularly hard. Iron ore exports have largely escaped sanctions so far, as China’s steel sector remains dependent on Australian shipments, but diversification efforts are becoming more important.
Impacts
Australia’s Foreign Investment Review Board has proved itself willing to block mining investments by Chinese firms.
Chinese companies aim to reduce dependence on Australian iron ore through investments elsewhere, notably in West Africa.
Mining giant Fortescue is working on a business model for supplying liquid hydrogen to Japan.
Keywords:
Australia,
AP,
China,
United States,
economy,
industry,
international relations,
foreign trade,
hard commodities,
metals,
mining,
natural resources,
sanctions,
coal,
electronics
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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