I've been living in China for three and a half years. have lived in the UK, Australia, South Africa, US and NZ before.
The move to not take Rio and BHP spot iron ore is a negotiation tactic. Look up Porters 5 forces and try to understand China's position. They're the best negotiators in the world, in a tough spot and they're trying options.
Loki. Please get a history book on north Asia. During the 20th century China was invaded or had sections annexed by Russia, Japan, Germany, Britain and France. It was the Mongols who tried to invade Japan and were only stopped by a freak storm or 'Divine Wind'as the Japanese call it. The Brits even came over the Himalayas and had a battle or two in Tibet. Its a country full of minority groups that are treated well and get on together - integrated you'd call it. Hmmmm, lets think how Australia treats its minorities.
Moondoong do you appreciate that the reason Australia is in a mining boom is because of China's growth? Thats why you have such a high salary and a cruisy roster.
I believe Darwins theories also apply to countries. Is Australia fat and happy living off a lucky resource endowment in a boom or is it a lean mean efficient innovative country thats investing for the future in new value added industries?
Learn to compete or fade away. The resource boom will eventually end.
