Iron in the firing line

Ore exports could be next hit in China trade war, says expert

AUSTRALIAN iron could be the next victim of trade tensions with China after Beijing changed its inspection rules.

Chinese customs officials say the changes taking effect next month are designed to “streamline procedures” at ports.

But the Global Times has warned Australian iron ore imports could be hurt by political tensions between the two countries. “This is another implicit warning to Australia,” Yu Lei, a chief research fellow at Liaocheng University, told the newspaper.

“It is associated with how Australia has acted, and a general decline in demand for steel on the global level.”

Labor frontbencher Joel Fitzgibbon has urged the Government to soothe relations with China, lashing the Coalition for demonising Australia’s biggest trading partner. A deepening row has reached fever pitch, with Beijing furious about Canberra’s push for a global coronavirus inquiry.

Mr Fitzgibbon ramped up his attacks on the Government, claiming it had mismanaged the relationship with the communist superpower over many years.

“We’ve been demonising the Chinese and their system of governance,” the Opposition’s agriculture spokesman told Sky News yesterday. Farmers have suffered a major blow, with China slapping an 80 per cent tariff on barley imports and blocking red meat from four Australian abattoirs.

Mr Fitzgibbon said the former Turnbull government’s changes to foreign investment thresholds discriminated against Chinese investors.

“Now we have our most recent prime minister basically saying things like we should send weapons-style supervisors into China against their will,” he said.

“I have no idea how he thought he was going to achieve that.”

Home Affairs Minister Peter Dutton said Australia was right to stand up to China.

“The values of the communist regime are not compatible with ours so you will have tensions from time to time,” he told 2GB radio.