Trade with China is an investment in our security

July 18, 2025

Jocelyn Chey notes that Foreign Minister Penny Wong has said publicly that a strong economic relationship with China, leading to stability and prosperity, is “an investment in our security”.

In that vein, we must congratulate Prime Minister Albanese on his talks with China, particularly with respect to a possible massive bilateral agreement on the development of “green steel”. It is a huge economic opportunity for Australia which is the world’s number one producer of iron ore with over half the global exports.

It is also an exciting — indeed, exhilarating — opportunity to help mitigate climate change because green steel is made from renewable energy. China is the world leader in steel production which accounts for 15% of its emissions. Globally, steel production is responsible for 7%-9% of emissions.

Significantly, Albanese, at his press conference in Shanghai on Monday, was joined by leaders of the Australian iron ore industry: BHP in Australia, Rio Tinto, Fortescue, and Hancock Iron Ore. They had been meeting Chinese steel industry leaders that day about decarbonisation of the steelmaking process.

Let’s hope a bilateral agreement with China on green iron and steel will be on the table soon to consolidate the deal.