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China’s Growth and Its Impact on Resource Demand and The Iron Ore Trade


  • Peter Drysdale

    (East Asia Bureau of Economic Research (EABER))

  • Luke Hurst


The paper sets out what has been driving Chinese demand for resources and outlines the main features of the growth of Chinese resource consumption. It explains the impact of Chinese growth on the Australian economy and examines the future of Chinese resource demand. It reviews the potential to supply Chinese resource (and in particular, iron ore) demand and looks at some policy questions that confront China, as a major resource-procuring economy seeking resource security through foreign investment, and resource-supplying countries, such as Australia, in the context of the growth of Chinese demand. The paper argues that increased supply capacity in Africa and elsewhere in the world is likely to put downward pressure on iron ore (and potentially other resource) prices as new projects come on stream over the next five years.

Suggested Citation

  • Peter Drysdale & Luke Hurst, 2012. "China’s Growth and Its Impact on Resource Demand and The Iron Ore Trade," Trade Working Papers 23293, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:23293

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    Cited by:

    1. Hurst, Luke, 2013. "West and Central African iron ore development and its impact on world prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-18.

    More about this item


    iron ore trade; resource demand; demand for iron ore; iron ore price; China; Africa; Australia; Chinese resource consumption; Chinese resource demand;

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade


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