subject: Tension State Between China And Australia [print this page] China"s demands for minerals and Australia"s abundant supplies have formed the backbone of a strong partnership. But bonds may be about to break, as Chinese growth slows and Australia looks to secure investment interest from elsewhere. Sarah Blackman investigates.China"s demand for metals and minerals once helped Australia cling on to a stable economy while other nations slipped into recession, but as growth slows in the East Asian state, the country may be about to lose its grip.Australia is China"s biggest and main trading partner, with minerals - particularly iron ore and coal - representing 67.3% of total exports to the country in 2010. Furthermore, over the past five years, the value of these mining exports has increased from A$13.2bn in 2006-07 to A$49.9bn between 2010 and 2011, according to data from Australia"s Bureau of Resources for Energy Economics (BREE).Rise and fall of the Chinese-driven mining boomFor a long time, Australia has depended on China"s hunger for mineral resources to feed its own finances, but after it cut its annual growth target to below 8% this month, for the first time in a decade, the world"s second largest economy is expected to lose its appetite.This time last year, Port Hedland, the highest tonnage port in Australia, could barely keep pace with Chinese demand.Its capacity had tripled since 2006, with iron ore, copper and other minerals making up the majority of export goods bound for the Asian country. In addition, according to Lindsay Copeman, acting chief executive of the Port Hedland Port Authority who spoke to Time Magazine in June 2011, capacity was expected to double again by 2016.Australia was reaping the benefits of the Chinese-driven mining boom and so were its major mining conglomerates, including Fortescue Metals Groups, Rio Tinto, Xstrata and BHP Billiton - which, in the fiscal year 2010-11, generated 28% of its total sales in China.But the boom wasn"t to last and as Chinese Premier Wen Jiabao announced this month that China"s economy would grow by 7.5% in 2012, down from 8% last year, the mood of Australia"s export market turned sombre. Speaking at the National People"s Congress in Beijing, Jiabao said exports and imports would rise by only 10% this year, 2012, down on growth of 20% seen last year.The figure matched expectations, however, with BREE predicting in its Resources and Energy Quarterly report, published in December, that China"s growth would ease after the country raised its interest rates five times in the past year to help reduce inflation.The world"s largest mining companies remained optimistic about demand growth for commodities in September 2011, but cautioned that a slowdown in China"s economy is among the biggest risks they face.In its annual report BHP noted that weaker Chinese growth would dent its earnings. "Sales into China generated $20.3bn, or 28.2% of our revenue in the year ended 30 June 2011. A slowing in China"s economic growth could result in lower prices and demand for our products and negatively impact our results," the report said.As the professional manufacturer of complete sets of mining machinery, such as Cement making machine,Cone crusher supplier,Combination crusher, Henan Hongxing is always doing the best in products and service.Mobile impact crusher:http://www.crusher-machine.com/2.html screw classifier:http://www.crusher-machine.com/27.html
