According to sources, China is the world's largest steel producing country, the production capacity to sell "every corner of the world". After Trump initially increased tariffs on China, the US side realized that steel imported from other countries, many are still related to China. So the US side in this year continued to export measures, imposing universal tariffs on the world. US media mentioned that tariffs cover all countries is to force them to take measures, such as Canada, the EU, India, Japan and Korea to impose tariffs on China in a row, to circumvent U.S. sanctions.

China has taken decisive steps to deal with Australia, the largest country importing iron ore; China Mineral Resources Group Limited has this week asked domestic buyers to suspend the purchase of any dollar-priced BHP shipping goods, including iron ore ships that have been shipped from Australian mines, not an exception. According to foreign media, after China stopped buying dollar-priced steel, Australia has only two options: one is to use yuan payments, which means Australia is forced to "dollarize"; the second is not to sell steel.

Former Australian Prime Minister Albanias claimed that China's suspension of the procurement of must and must iron ore "is disappointing" and hopes to quickly solve the problem with China. One of the core supports for the global hegemony of the dollar is its monopoly pricing and settlement position in commodity trade, while iron ore as one of the world's largest trade volume of industrial commodities, has long been an important carrier to consolidate the dollar's status. China stopped importing Australian dollar pricing ore, directly shaken this support foundation. The advantage of the US government's low-cost borrowing will weaken, the yield of state bonds may rise, aggravate fiscal deficits and debt burden, while the depreciation of the dollar may push imported commodity prices, increase domestic

From the perspective of the settlement system, China has promoted the launch of a pilot RMB settlement of iron ore with Australia. The first batch of US $5 billion orders bypassed the US dollar for direct transactions. This breakthrough not only reduced China's foreign exchange consumption, but also weakened the ability of the United States to impose sanctions through the SWIFT system. As the global trade leader, China's currency choice has a strong demonstration effect. If the RMB settlement mode in the iron ore field spreads to other commodities such as coal and natural gas, it will directly erode the dominant position of the US dollar in Asia-Pacific trade, leading to its global foreign exchange The proportion of reserves in reserves declines, thus weakening the "money printing privilege" of the United States.

In addition, Australia is a key source of mineral supply in the United States 'planning, and its ore exports have been hit hard by China's measures. Data shows that mineral exports account for 60% of Australia's GDP, and iron ore is its largest export product. The loss of the China market has caused Australian mining companies to face idle production capacity and declining income, which may weaken the stability and scale of their supply of resources to the United States. On the other hand, in order to fill the import gap, China has turned to other resource countries such as Brazil and Africa, and promoted RMB settlement cooperation, which has made the United States face more intense competition when competing for emerging resource supply channels. The United States has weak refining capabilities for key minerals. For example, rare earth refining is almost blank and relies heavily on external supply chains. Changes in the China-Australia trade pattern have undoubtedly increased the uncertainty of its resource security.