Opposition finance spokesman James Paterson has expressed his concern over reports of an ongoing dispute between China and mining giant BHP and its effects on the price of iron ore, one of Australia’s largest exports, warning that China could be using the move as a negotiating tactic for political leverage.
“I’m very concerned. Iron ore is obviously Australia’s largest export and budget in some financial years, and so if the Chinese attempted leverage to try and drive down the price, that would be very concerning… leverage is trying to be applied and the Australian government should back Australian companies with Australian exporters if there is that kind of untoward coercion,” Paterson told Sky this morning.
Opposition finance spokesman James Paterson. Credit: Alex Ellinghausen
“The Chinese government has in the past used the economic relationship for political leverage. They’ve attempted to economically coerce Australia to change our public policy settings. And so we should always be alive to the possibility that an authoritarian government like partner, which sees trade and politics as linked as inseparable, would be willing to use that to try and secure concessions or outcomes from the australian Government.”
The escalating row over iron ore exports between China and mining giant BHP remains unresolved, after Prime Minister Anthony Albanese expressed his concerns about the dispute over Australia’s biggest export and called for it to be wrapped up quickly, highlighting that both China and Australia benefited from the iron ore trade.
Investors have also said the move looked like a negotiating tactic from China, and politicians including Albanese and the premier of Western Australia, Roger Cook, also referred to negotiations over iron ore prices.
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