BRICS member China is rapidly increasing its trade deals with Australia despite having political fallouts for over a decade. The latest data shows that Australia’s trade with China has touched a record high of $145 billion in 2023. This is for the first time the trade between the two countries increased after the COVID-19 pandemic. Before the lockdowns, Australia’s trade with China stood at $168 billion in 2019.
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The development indicates that BRICS member China and Australia’s trade deals are recovering from the slump. The recovery in trade between the two countries is particularly driven by iron ore. Australia’s top export from China is iron ore and the metal’s prices are surging following a rebound in services in the travel and tourism sector. Therefore, BRICS member China has an upper hand in supplying iron ore to Australia making trade deals worth billions.
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BRICS: China & Australia’s Trade Deals Reach $145 Billion
The increase in trade deals between Australia and BRICS member China helps the Communist nations’ economy to revive the pandemic slump. “The economic relationship is very strong and growing in spite of all the noise,” said Hans Hendrischke, Professor of Chinese Business and Management at the University of Sydney to Financial Times.
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Apart from improving trade with Australia, BRICS outperformed the U.S. by being the top supplier of LNG gas to Europe. The U.S. is now the second biggest exporter of LNG gas to Europe as BRICS takes the first spot.
The BRICS alliance is looking to control the oil and gas sector and challenge the U.S. dollar’s global supremacy. The bloc is looking to topple the U.S. dollar and replace it with local currencies for cross-border oil settlements. Read here to know how many sectors in the U.S. will be affected if BRICS ditches the dollar for trade.