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They are just into realpolitik. They will switch their purchases from Australia to the US despite the strategic rivalry because it is in their interest to incre
by fspeech 5y ago
They are just into realpolitik. They will switch their purchases from Australia to the US despite the strategic rivalry because it is in their interest to increase economic dependence there. They will tolerate far more transgression from the US but if others follow they will be sure to set an example of them.
- ethbr0 5y agoOn the other hand, Australia is a huge source of raw materials for China. As an example, they produce more than 1/3 of the world's iron ore. So this is more than China pushing around another random country. They'd have to cut off their own ear to spite Australia.
- fspeech 5y agoSure. Just look at the divergence of steel price from iron ore price. I don't think steel producers are complaining. The fact is, China has been way over consuming in terms of steel. Even if they continue to depend on Australia for iron ore, ore pruducers are not going to compensate wine makers or coal miners for their losses.