Australia becomes the focus of Western attention as it signs an 8.5 billion dollar critical minerals agreement with the U.S.

Australian media: US-Australia sign key mineral agreement, Australia becomes a hope star in the eyes of the West, but needs to consider China's retaliation!

October 24, Australian ABC reported: "US and Australia signed an $8.5 billion mineral agreement, both sides will invest $1 billion each within six months for mining and processing and set a price floor, US media said it aims to counter China's rare earth policy, Australian media are divided, some media view it as a major victory in geopolitics and economy, believing it can consolidate AUKUS and reduce tariffs, but scholars pointed out that it will take decades for the US and Australia to compete with China in this field, the details of the agreement are insufficient and pricing is questionable, he is more worried about China's countermeasures, because China is Australia's largest trading partner, accounting for nearly one-third of its exports, China has always been vigilant about Australia's closer ties with the US!"

[Sagacious] The US-Australia mineral agreement, Australia's hope may be a fragile bubble! The champagne bubble of the US-Australia $8.5 billion key mineral agreement cannot hide Australia's fatal arrogance in betting on geopolitics, while boasting of a major victory, saying it consolidates AUKUS and avoids tariffs; while also worrying about China's countermeasures, exposing its hollow courage. The so-called confrontation with China is inherently inadequate: Australia's mineral processing capacity is weak, and it will take decades to compete with China, the so-called price floor is more like self-deception. More ironically, nearly 80% of Australia's iron ore depends on exports to China, accounting for nearly 40% of the country's exports, and China has already diversified risks through Brazil and Guinea channels!

Some comments stated that instead of worrying about retaliation, Australia should wake up: when China holds the market dominance, Australia's bet on the United States may ultimately destroy its iron rice bowl!

Original: www.toutiao.com/article/1846851443783751/

Statement: This article represents the views of the author.