Australia benefits hugely from Chinese natural resource investment

Australia has received huge investment in its natural resource sectors from Chinese energy firms. Iron ore in particular, has become a massive export commodity to China from Australian mines in Western Australia.

After the diplomatic spat caused by China’s detention of executives from Rio Tinto, an Australian mining conglomerate, China has now signed a contract to purchase a total of $41bn in liquid natural gas from a new natural gas field in development off of the country’s northwest coast.

While the both China and Australia keep each other at arm’s length publicly, their trade relationship has been increasingly drastically over the last few years. Going forward, each country is likely to develop policies favorable towards the other as trade deals like the one signed just yesterday set new precedents.

More here.