Australia mining exports seek less dependence on China

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.