Fears for Australia’s economy amid China standoff

Fears for Australia’s economy amid China standoff

#australia #economy #china #mining

China has reportedly banned iron ore purchases from BHP, rattling the markets and sparking shockwaves in Australia.

China is Australia’s main iron ore buyer, meaning the two countries’ commercial dispute could have wide-ranging political implications.

Analysts say this is a strategic bid by Beijing to reduce prices of Australian iron ore, but there are concerns a continuing ban could lead to economic turmoil.

But what is iron ore? Why is Australia so dependent on China? What would happen if China stopped buying our iron ore?

Here’s a breakdown of the Bloomberg report on BHP purchases, and what it could mean for Australia if China did indeed turn away from us.