Australia is Crucial to China in Boosting its Economy
The knots between the Chinese and Australian relationships were extremely loose throughout the year 2020. Both countries had very firm and straightforward stances against each other and affected the economic condition of both countries.
Some actions taken by Australia against China due to the COVID-19 resulted in China reacting to it. China did this by ceasing the majority of its trades with Australia, resulting in Australia facing a huge loss at its ports.
Now that the COVID-19 pandemic is hoped to be eradicated with the discovery of vaccines, the countries are aiming to focus on their economies.
This is where China comes in as it faced the worst downfall to its economy in the year 2020 due to the COVID-19 outbreak. China was the country where it all started and had the rest of the world cut ties with it, putting a lot of economic pressure on the country.
With things getting back to normal, China is now ready to focus all of its resources on retaining its economy. The second-largest economy in the world is now aiming to regain its lost economy and for that purpose, it needs the help of Australia.
In order to boost its economy and bring it up to pace, the country needs more iron ore and the country known for being the main iron ore supplier to China is none other than Australia.
The capital of China ‘Beijing’ released a report on January 25, 2021, around the growth of its GDP from last year.
It was reported that the GDP for China grew by 2.3% for the last year, being able to avert most of the recession that hit the entire world during the pandemic.
The capital also confirmed that the Chinese GDP for the fourth quarter of 2020 grew by 6.5% as compared to the same quarter in 2019.
The Chinese Government also revealed one of the key factors that helped the country keep its GDP at a good rate. It was revealed that the Chinese Government spent heavily on infrastructure projects that helped the country keeping its GDP high.
When comparing the last month of 2020 with the entire year, it was revealed that the Industrial output rose by 7.3%. The report also showed that the production of crude steel also went up for the year 2020. According to figures, the crude steel production for the year 2020 was 1.05 billion metric tons. This production rate was 5% more than what was produced back in 2019.
It was revealed that China cannot achieve such goals without iron ore, as the ore is needed to build bridges, buildings, and roads. According to figures, China has imported 17% more iron ore than it did back in 2019.
When it comes to supplying iron ore, Australia has been the largest provider for China. As of now, Australia is responsible for supplying around 60% of the iron ores to China.