China has just threatened to stop Australia’s iron exports pipeline to Beijing.
A Wake Up Call
China’s recent threat to Australia is what they describe as a “wake-up call”. This came about due to Australia’s inquiry into the COVID-19 virus. Scott Morrison, the Prime Minister of Australia, called for an inquiry on where the virus originated.
The threat is a sizable one, as Australia has an iron exports pipeline to Beijing. It is currently valued at upwards of USD $60 billion.
Iron is not the only thing China has made moves on. Just this week, China has boycotted beef and barley. These are two Australian exports.
The move sent shockwaves throughout the world, as other industries felt that nothing is safe. They feel like they could be next if they gain the ire of the Chinese government.
One spokesperson for the Communist party hinted that they could do without Australia for certain exports. For iron and other commodities, he says they could easily go to Brazil.
China has suspended the importing of any Australian meat. They have also placed major tariffs on these items. One newspaper does not refer to this as punishment to Australia though, but only a warning as to the economic links the two countries share.
Four Australian plants were recently affected by the suspension. This move affects Australia in a large way. This is because China is the largest importer of beef. They import about 30 percent of all beef exports.