China is asshoe.
Australian Prime Minister Scott Morrison demanded an independent inquiry into the deadly respiratory virus and the World Health Organisation's handling of the crisis.
www.dailymail.co.uk
So I would look at this from an economic perspective, rather than a Geo-political perspective.
From the Geo-political perspective, oh this is horrible, and how mean, and woe is Australia.
But from an economic perspective, China really only seriously harmed themselves.
Australia is the largest exporter of Iron Ore in the world. China just instituted a massive tax on raw Iron Ore into China. And who are the biggest buyers of Iron Ore in China, that will be footing the cost of those taxes? The Government run steel companies, that fund part of the Chinese government.
So the very people harmed the most by these Chinese taxes on imported Iron Ore, are in fact the government itself.
In the mean time, look at how this will affect the global market.
While the price of imported Iron Ore into China will go up... the price of Iron Ore throughout the world, will go down. Steel companies around the world, will enjoy lower prices on raw materials, while Steel companies in China will face higher costs of raw materials.
This will place a disadvantage on China's steel industry, relative to the world.
So here is my suggestion to Australia.
This is the best opportunity Australia will ever have, assuming China doesn't repeal the tariff quickly.
Australia should immediately offer any Steel making companies, or any ore processing companies, a full 10-year 100% tax free operation in Australia. Zero taxes on all operations, and even investment in building a sea-port to export Steel or other processed ores, 100% tax-free for 10-years.
Nothing would be a greater insult, than to use these exact Chinese tariffs, to create competition in the Steel market against the Chinese government's Steel companies.
