Did chinese ban backfired? Really? I personally know a couple of meat production businesses who are suffering and cursing scomo for trying to play macho man on behest of america.
No doubt that Australia is blessed with natural resources but that has been the reason we became too complacent to innovate or produce any knowledge based economy. I hope you know your export mix.
Edit: Added a snippet of trade figures.
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Meat and Wine industry actually, and Meat IIRC have had found alternative market in Japan and South Korea, in effect only wine industry got left behind, but then we are not talking about them.
All you need to do is to look at the stock price for the big 5 mining company. BHP, Rio Tinto, Fortsecure and Newcrest (I forgot the other one) Their stock shoot up after the Chinese ban. I personally earn around 50G by trading BHP 2 years ago.
That's very superficial explanation. Iron ore pricing is controlled by west countries. In another word, it can be manipulated. It is very abnormal iron ore price surged when the world entered covid time. When the demand was supposed to decline and meanwhile the total supply didn't change much.
Obviously the west used its economic power to set China up. Whether China made right or wrong decision doesn't really matter. All China needs to do is, keep growing. China needs a stronger economic power.
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The ore price is not set by the West, it like other commodity, it was set by supply and demand.
So when China announce they will scale back buying Australian Coal and Iron ore (and other import) the Mining company scale back the production simply because China is not buying, which mean the supply was slashed by the big 5 mining company, thus jacking up the price.
But that does not mean China don't need iron and coal to continue their economic development. Which mean the Chinese are now sourcing alternative supplier, however, since Australia lead the next Iron production (Brazil) by almost 3 times the output, Brazil don't have enough to spare for Chinese market. Which in turn leads to A third country buying Australian Iron ore and coal, then resell to China at a even high price, it got so bad Chinese custom have to release the Australian Iron Ore and coal (by then the price is already almost doubled) to satisfy the demand.
It's like Russia and its oil and gas, and this time Australia is Russia, which is holding all those coal and iron ore, and China is EU, China very much depends on Australian mineral to keep up with economic development. Which mean like when Russia is now at war and oil/gas future is uncertain, the price goes up, same thing with Australian Iron and Coal, the only different here is for oil and gas you still have a certain alternative (US, Middle East and so on) but for Coal, Australia out produce the next 2 combine, which mean pretty much if Australia scale back Iron and Coal production. Nobody is getting any.
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