Imagine if Australia threatened to withold iron ore from China


Perhaps we should. The CCP are such an unworthy pack of arseholes that they certainly have it coming. Even Murdoch got the memo:

So, let’s imagine what would happen if Australia behaved as the CCP does. What would transpire if we threatened to withhold iron ore unless it shut all wet markets and gave international inspectors access to its Wuhan biolabs?

The first thing would be a howl of protest about racist Aussies the would echo in the firmament. The ABC would amplify it gleefully.

The second would be the total shut down of trade.


The third would be sending a flotilla of dodgy aircraft carriers to Bateman’s Bay to demand Canberra reverse course. WWIII may begin at that point.

The fourth would be an armed invasion of the Pilbara and WWWIII firming as the base case.

Why would we see such an extreme response?


Because the Communist Party of China needs iron ore and coking coal. It needs it like oxygen in its blood. Iron ore is the key input into its gigantic economic Ponzi scheme. Every time the CCP orders the construction of another empty apartment to keep ordinary Chinese employed and politically subdued, it needs another tonne of the stuff.

Iron ore is the first page in the CCP’s social contract with Chinese peoples. It is the bribe that buys Chinese people’s freedom. Take it away and its economy will stop growing, mass unemployment follows, with regime change shortly after that.

So, no, Australia should not withhold iron ore from China. Such a commodity blockade would lead to a war that nobody wants. Nor should we threaten to do so.

But neither do we need to put up with these daily insults from the CCP. Such rude and reckless behaviour should not pass without consequence. If its toxic diplomatic corp does not start showing some respect then we should expel them.


Australia does not need China anywhere near as much as the CCP needs Australia and all the bullshit and bluster in the world doesn’t change this iron-clad fact.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.