China’s plans challenge Australian miners

China has pledged to reduce its steel industry’s dependence on third parties for iron ore in a five-year plan amid rising raw material prices and a growing trade dispute with Australia’s main iron ore supplier.

According to the five-year plan, by 2025, China’s steel sector will have at least 45% of its iron ore supply from sources controlled by China, through Chinese mines abroad, cooperation with non-dominant suppliers, and increased consumption of steel scrap.

The plan could be of particular concern to Australia, which has iron ore as its main export and China as its largest market. Although the Chinese government has imposed restrictions on some products imported from Australia, iron ore has not yet been affected, which analysts attribute to China’s heavy reliance on Australian supplies.

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