Australia faces ‘draw back dangers’ from slowing Chinese language economic system.
China’s slowing development sector and falling demand for iron ore presents huge challenges for Australia’s economic system, Treasurer Josh Frydenberg has warned.
He spoke with Right this moment after new figures confirmed output from Chinese language factories throughout October fell greater than forecast.
“The Chinese language economic system is beginning to sluggish for each cyclical and structural causes and the housing sector, which is a big a part of their economic system, has seen a little bit of a decelerate as properly,” Mr Frydenberg stated.
He instructed the Australian Monetary Overview yesterday China’s slowing economic system introduced “draw back dangers” for Australia.
“Coal provide constraints noticed value spikes, power rationing in some provinces and a slowdown in industrial manufacturing,” Mr Frydenberg stated.
“Chinese language authorities limits on metal manufacturing have additionally contributed to decrease ranges of exercise.”
However Mr Frydenberg additionally stated the falling value for iron ore – a significant mineral for metal making – was a serious concern for Australia.
The iron ore export market was final yr price $125 billion to the Australian economic system, with China shopping for about 70 per cent for its metal mills.
However Beijing needs to scrub up its carbon footprint, and that includes reducing again on metal manufacturing.
This yr costs peaked at report highs of $233 on Might 12, however since then the value has dropped to about $100.
Mr Frydenberg instructed Right this moment that the Federal Authorities was making ready for that value to drop even additional by subsequent March.
source
Love Australia hope america will step in and open up stronger trade also with other nations .
A risk that needs to be taken. There's no benefit to Australia trading with China. They used trade as a weapon against them, so turn your backs on them and charge more for your iron ore. If the roles were reversed, China would be happy to charge 4 times as much.
Everyone needs to voluntarily disengage from China until they start acting in good faith, which won't happen as long as the CCP is running the country. Find other places to trade with, we don't need them.
China banned the use of Australian coal in a way Xi sanction themselves
Let go of CHINA.
Australia must stop supplying coal to China let them suffer …
Did anyone else laugh when they said Beijing wants to clean up its carbon footprint?
Bullshit Australia can sell to India , Malaysia Singapore Vietnam wants all they can get from Australia!!!!!
Australia have been doing awesome stuffs
We are much more stronger in economy without evil terrorist Communist China.
Throw china out from UNO. China should be punished by 4o trillion dollar as compensation for victims of virus
China is barbaric country not fit for friendship with global community
All nations should help Australian
Australia is facing a downside of the exports fall thanks.
Great NEWS!!!!!!!!
Hope Australia WILL never never help china.. KARMA MORE AND MORE
Why does Australia not produce steel? It should be possible to get the expertise at a fair price – and what else would you invest in?
THE DOWNSIDE risk, given China’s military bombast
is that they might just invade and take it !
When did Australia really help China?
It's NOT about China wanting to clean up their carbon footprint – they don't give a stuff. It IS that their exports are DOWN and they CANNOT afford all their previous imports and their economy IS cracking.
Chyna is bankrupt, it’s for the best that we find other markets for our resources anyways plenty of other countries would buy our iron ore it’s no big loss…. 👍
Make sure that Biden won't send the American Food to China and leave the American population starving.
Great news. America sold a bulk 20 years of LNG to China. US and Canada sold large quantities of coal to China filling up void by Australia's absence
Mrs Victoria is legit and her method works like magic I keep on earning every single week with her new strategy?
Karma is playing on Australia. Big lessons to learn since biting the hands who fed them for 25 years . With climate change battle soon those Iron Ores, Coals n others will be less produced . Australia will lose its royalties fees from all those commodities based revenues .
Australians will face tough periods ahead. It will never able to replace the China market of 22 percent world consumer market . China certainly will not need Australia in future once they start to speed up production of renewable Energies.