Australia on Wednesday asked the World Trade Organization to investigate China’s imposition of punitive high taxes on Australian barley. Since Australia asked an international investigation on Novel Coronavirus to offend China, China took a series of retaliating measures to restrict the import of Australian products or impose punitive tariffs on them. However, analysts pointed out that China’s boycott of Australian products may also be a double-edged sword that hurts Australia and itself, or even outweighs the gain. China’s domestic food prices have recently been unusually volatile, lamb prices have soared, restrictions on Australian coal have led to power cuts in Zhejiang and Hunan provinces, and so on, not to mention Australia has an important weapon: iron ore, which China’s steel industry desperately needs…
, according to a report in the free Asia in China’s high-profile restricted imports of Australian beef, coal, wine and other goods, China’s domestic share prices began to appear abnormal fluctuations, the Chinese ministry of agriculture of the country’s 500 market monitoring, in the second week in December 2020, the national mutton price is RMB 82.66 per kg, for eight weeks rose, rose 3.6%.
China’s boycott of Australian coal imports has also hit a number of industries, with the Hunan Development and Reform Commission ordering traffic lights and street lamps to be turned off at night in order to conserve coal, as well as recent restrictions in Zhejiang and Hunan provinces that have led to the closure of small businesses and workshops in Yiwu. When China stopped buying coal from Australia in the fourth quarter, it tried to make up the shortfall by buying more from Indonesia, but Australian coal is considered to be of higher quality and more efficient than domestic coal.
“China restricts all coal imports from Australia, but in the first five or ten years, China had a surplus of power generation. Now I don’t know why it suddenly becomes short of power,” Song said.
But in the face of Chinese resistance, Australia also has a powerful weapon against China. If Australia were to retaliate against China with iron ore, it would have major consequences for Chinese steelmakers.
According to the data, China relies heavily on imported ores and raw fuels. Of these, 62% of China’s iron ore and 36% of its coal imports come from Australia. Australia accounts for 60 per cent of China’s iron ore imports, shipping 900 million tonnes of iron ore a year to China and 20 per cent to Brazil, according to estimates by Westpac.
The British broadcasting corporation reported on December 14, senator, federal resources minister connor all calls for a tax on iron ore resources of punitive to counter China, in his view, it is hard to find a substitute for iron ore in China, as long as the Australian government rate raise one percent, can be an additional $800 million a year, you can use this part of income to make up for the Australian trade sanctions on China’s industry. However, Canberra is currently opposed to retaliating against China with iron ore, preferring to settle the dispute at the World Trade Organisation.
The price of iron ore on the international market has soared recently, with the price of iron ore futures on the Dalian Commodity Exchange in China soaring by more than 1,000 yuan per ton to a seven-year high on December 14, according to reports.
In the face of the recent rapid rise in the iron ore market, the head of the China Iron and Steel Association held talks with two major Australian iron ore giants on December 15, asking both suppliers and suppliers to establish a new pricing mechanism. This is said to be cISA’s second video conference with a foreign mining giant in a week. China’s steel industry accounts for half of the world’s total, but the industry’s main “grain” iron ore is highly dependent on imports, with Most of the iron ore used by Chinese mills coming from Australia and Brazil, according to thepaper.cn. Australia on Wednesday asked the World Trade Organization to investigate China’s imposition of punitive high taxes on Australian barley. Since Australia asked an international investigation on Novel Coronavirus to offend China, China took a series of retaliating measures to restrict the import of Australian products or impose punitive tariffs on them. However, analysts pointed out that China’s boycott of Australian products may also be a double-edged sword that hurts Australia and itself, or even outweighs the gain. China’s domestic food prices have recently been unusually volatile, lamb prices have soared, restrictions on Australian coal have led to power cuts in Zhejiang and Hunan provinces, and so on, not to mention Australia has an important weapon: iron ore, which China’s steel industry desperately needs…
, according to a report in the free Asia in China’s high-profile restricted imports of Australian beef, coal, wine and other goods, China’s domestic share prices began to appear abnormal fluctuations, the Chinese ministry of agriculture of the country’s 500 market monitoring, in the second week in December 2020, the national mutton price is RMB 82.66 per kg, for eight weeks rose, rose 3.6%.
China’s boycott of Australian coal imports has also hit a number of industries, with the Hunan Development and Reform Commission ordering traffic lights and street lamps to be turned off at night in order to conserve coal, as well as recent restrictions in Zhejiang and Hunan provinces that have led to the closure of small businesses and workshops in Yiwu. When China stopped buying coal from Australia in the fourth quarter, it tried to make up the shortfall by buying more from Indonesia, but Australian coal is considered to be of higher quality and more efficient than domestic coal.
“China restricts all coal imports from Australia, but in the first five or ten years, China had a surplus of power generation. Now I don’t know why it suddenly becomes short of power,” Song said.
But in the face of Chinese resistance, Australia also has a powerful weapon against China. If Australia were to retaliate against China with iron ore, it would have major consequences for Chinese steelmakers.
According to the data, China relies heavily on imported ores and raw fuels. Of these, 62% of China’s iron ore and 36% of its coal imports come from Australia. Australia accounts for 60 per cent of China’s iron ore imports, shipping 900 million tonnes of iron ore a year to China and 20 per cent to Brazil, according to estimates by Westpac.
The British broadcasting corporation reported on December 14, senator, federal resources minister connor all calls for a tax on iron ore resources of punitive to counter China, in his view, it is hard to find a substitute for iron ore in China, as long as the Australian government rate raise one percent, can be an additional $800 million a year, you can use this part of income to make up for the Australian trade sanctions on China’s industry. However, Canberra is currently opposed to retaliating against China with iron ore, preferring to settle the dispute at the World Trade Organisation.
The price of iron ore on the international market has soared recently, with the price of iron ore futures on the Dalian Commodity Exchange in China soaring by more than 1,000 yuan per ton to a seven-year high on December 14, according to reports.
In the face of the recent rapid rise in the iron ore market, the head of the China Iron and Steel Association held talks with two major Australian iron ore giants on December 15, asking both suppliers and suppliers to establish a new pricing mechanism. This is said to be cISA’s second video conference with a foreign mining giant in a week. China’s steel industry accounts for half of the world’s total, but the industry’s main “grain” iron ore is highly dependent on imports, with Most of the iron ore used by Chinese mills coming from Australia and Brazil, according to thepaper.cn.
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