Inkstone Index: China buys more from Australia despite rising tension

Inkstone Index: China buys more from Australia despite rising tension

  • China is heavily reliant on Australia for iron ore, a key material for construction projects.
  • This is partly why China imported more goods from Australia despite slapping punitive tariffs on Australian beef and barley over rising geopolitical tension.

China is importing more goods from Australia despite rising diplomatic tensions between the countries.

The rise in Chinese import of Australian materials crucial for China’s infrastructure projects made up for drops in other products Australia exports to China.

In May, Beijing slapped tariffs on Australian barley and suspended imports of Australian beef from four producers. The tariffs came after Australia called for an independent probe into the origin of the coronavirus in April, leading some to speculate that Beijing was using economic tools for political coercion.

Imports from Australia increased thanks to China’s heavy reliance on iron ore, which are rocks and minerals essentials in steel production – a key material in infrastructure projects and industrial production.