India

China will be looking to diversify sources of supply in the long-term

China will buy Australian products if they need them but will be looking to diversify source of supply for things like iron ore in the long-term, says Australian Strategic Policy Institute Executive Director Peter Jennings. 

“I think what we’ve seen from all these months of fighting over trade with China is that if China needs Australian products, they will buy them,” he said. 

“So I don’t see iron ore as necessarily being a problem in the short term but if you take a five to 10 year look I think China will be working as hard as it can to diversify its own sources of supply away from this nuisance of Australia.

“So our iron ore producers better understand that the longer term future for them is going to be less access for them to the Chinese market."

China will purchase Australian merchandise in the event that they want them however will be looking to diversify supply of supply for issues like iron ore in the long-term, says Australian Strategic Policy Institute Executive Director Peter Jennings.

“I think what we’ve seen from all these months of fighting over trade with China is that if China needs Australian products, they will buy them,” he mentioned.

“So I don’t see iron ore as essentially being an issue in the quick time period however for those who take a 5 to 10 12 months look I feel China will be working as onerous as it may well to diversify its personal sources of supply away from this nuisance of Australia.

“So our iron ore producers higher perceive that the long term future for them goes to be much less entry for them to the Chinese market.”

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