China appears willing to pay higher financial and environmental costs if it means ending its dependence on Australian commodities including iron ore and coal. China has been steadily diversifying its sourcing of key commodities that it once depended on Australia to provide, even if new suppliers in places like South Africa and Guinea don’t offer the same benefits. 

China-Australia ties have deteriorated considerably over the past year due to a number of factors including Huawei, China’s territorial claims in the South China Sea, and Canberra’s call for an independent investigation into the origin of COVID-19.