화상영어 수업 13회차 (호주-중국 무역 갈등)

China still needs Australia to power its economic recovery

 

China and Australia spent much of last year in a tense standoff on trade. But as the recovery of the world's second largest economy gathers pace, China needs more iron ore and Australia is still its main supplier.

Beijing on Monday reported that China's GDP grew 2.3% last year, averting the recession that gripped much of the world as the coronavirus pandemic spread. GDP in the fourth quarter grew by 6.5%, compared with a year earlier.

Term	EN	Example
stand off (교착 상태)	A stand-off is a situation in which neither of two opposing groups or forces will make a move until other one does something, so nothing can happen until one of them gives way. (= deadlock, stalemate)	The strike appeared to have reached a deadlock. ** end in a deadlock = reach a deadlock
gather pace (가속화하다)	To start to happen more quickly and have more success	Growth will gather pace through the year.
a year earlier	= last year, the previous year	The company lost 7 million dollars this quarter compared with a year earlier.

*iron ore: 철광석

*avert: 피하다(=prevent)

*grip: 사로잡다

 

Of big help was the Chinese government's decision to invest heavily in infrastructure projects. Industrial output rose 7.3% last month compared to a year earlier. And crude steel production hit a record 1.05 billion metric tons for the year, a 5% increase from 2019.

The country can't sustain that kind of output without iron ore, which it needs to make the steel for roads, bridges and buildings. China imported 17% more iron ore last year than it did in 2019.

Australia is a big winner of that growing demand, being responsible for some 60% of the iron ore that China imports.

China's reliance on raw materials from Australia stands in stark contrast to the attempts Beijing has made to put pressure on Canberra. After the Australian government called for an international inquiry into the origins of the pandemic last year, China slapped heavy tariffs or bans on imports of wine, beef, barley and apparently coal.

 

*stand in stark contrast to: 극명한 대조를 이루다 (ex: Her selflessness stands in stark contrast to this selfishness.)

 

The country's dependence on iron ore from Australia, meanwhile, remains strong. Mining giant Rio Tinto (RIO) reported Tuesday that shipments of the material rose 2.4% last quarter, helped by "robust buying" from China.

Fortescue Metals Group (FSUGY), another major Australian iron ore miner, reported in October that China's strong demand helped the company reach record shipments for the material. It later reported that it signed as much as $4 billion worth of deals with major Chinese steel mills for iron ore exports.

Australia isn't the only country supplying China with this vital raw material. But it is by far the largest source, and one analyst say would be difficult to replace should relations between the two countries sour even further.

Brazil is one option — about 20% of the iron ore that China uses comes from there. But analysts at Changjiang Futures, a Wuhan-based securities firm, point out that there are problems to that alternative. Major Brazilian mining firm Vale (VALE), for example, has struggled with disruptions to supply after a wave of coronavirus infections among its workers last year.

Chinese state media outlets have also admitted that the country is heavily reliant on Australia for the resource. The International Business Daily — the official newspaper of the country's Commerce Ministry — suggested as much in an article published in November, which pointed out that China needs to import the vast majority of the iron ore it requires to keep the economy humming.

 

예습 내용

[Summary]

China and Australia spent much of last year having trade conflicts, as the Australian government called for an international investigation into the origins of the pandemic. After the statement of the Australian government, the Chinese government slapped tariffs on their imports such as wine, beef, and barley. However, China still needs Australian iron ore for its infrastructure projects. Imports of iron ore from Australia has been growing even during the tense deadlock. Of course, there is another option. Brazilian iron ore takes up around 20% of the share. But as Brazil is still struggling with the pandemic crisis, it seems it would be hard for China to replace Australia in the near future.

 

[Comprehension questions]

1. How is the Korean economy coping up during the pandemic?

> Surely, the coronavirus outbreak hit the Korean economy hard, but it seems that Korea has risen to the challenge. The Korean Bank anticipated that the Korean economy would shrink by 1.1% last year, but thanks to the resilient trade and the success of containing the virus, we ended 2020 with a slightly small contraction. Our economy declined by 1.0% compared to 2019, but this figure is likely to be the smallest among the members of OECD. We had to secure additional four supplementary budgets to pay for all the new schemes.

 

2. If the pandemic will be long term, what would be the best decisions to boost the economy?

> Firstly, I do not agree with this option, but it can be really effective. So the pharmaceutical companies can wave certain intellectual property rights temporarily so that those countries which could not secure the vaccines can produce vaccines by themselves. Then we can recover from this crisis much faster.

> The second option is to provide more targeted support. For example, restaurants are closed and thousands of local businesses are closed. Since we have limited resources, we first should help those people who suffer the most.

 

3. What are some businesses that had a boost during the pandemic?

> Tech firms have benefitted from the pandemic. For example, Zoom, Amazon, and Docusign hit a record last year. Those companies help people to work, learn and shop remotely. Oh, and the furniture companies, as people spend much time home.

 

평가 및 피드백

1. The influx of iron ore has been growing since this deadlock.
CORRECT
>>or: The need for iron ore has become bigger.

2. To be really honest with you, I was traveling to Japan at that time.
CORRECT
>>or: In all honesty, I was going around japan at that time.

3. China needs iron ore because they are investing on infrastructure project.
>> China needs iron ore because they are investing in infrastructure projects.

4. Companies can secure international property rights.
CORRECT
>>or: Companies  can obtain international property rights.

5. Australian government called for an investigation.
>>The Australian government called for an investigation.

6. It will be hard for China to replace Australia.
CORRECT
>>or: Australia will be irreplaceable for China.