Sino-Australian Iron Ore Cooperation

This study explores the cooperation between China and Australia in terms of iron ore trade and investment. The thesis starts with a historical review of Sino-Australian iron ore trade and investment with their respective features, followed by an analysis on the new trends and developments in Sino-Australian iron ore trade and investment as well as their implications for the bilateral relationship between China and Australia. Then the focus is shifted onto a number of strategies for Chinese enterprises to meet the challenges arising from economic frictions, and the possible collaboration between China and Australia in environmental friendly hi-tech transfer.The paper consists of five chapters with the first one as an introduction, followed by the main body, chapters two to four, and the last chapter as the conclusion.Chapter One introduces the issues to be explored with the review of the related literature, and the illustration of the objectives and methodology of the study. Chapter Two unfolds the historical review of Sino-Australian iron ore trade with its main features. Besides, it examines the evolution of iron ore price negotiation mechanism including the introduction of different modes in setting prices and the detailed presentation of negotiations from2003to2010. The challenges confronting Sino-Australian iron ore trade are stated thereafter. Chapter Three investigates the overall development of Sino-Australian iron ore investment with major characteristics. Moreover, it discusses Chinese investments in Australia’s resources sector through the analysis of different types of projects as well as the case study on Rio Tinto affair. Factors affecting two-way investments are outlined as well. Chapter Four illustrates a set of strategies for Chinese enterprises to further strengthen Sino-Australian trade and investment in the mining industry with the highlight on the possible cooperation between the two in technology transfer in relation to minerals processing and steel production. Chapter Five draws some conclusions and presents the expectations for the bilateral economic relationship between China and Australia in the resources sector.