China's Impact on Mineral Ore Trade Geopolitically Case Study

Question 1

How have China invested into developing countries?

Answer 1

• Companies like Chinalco and Jiangxi Copper invest heavily in establishing mining operations in developing countries, especially in Africa.
• China Nonferrous Mining Corporations (CNMC) purchased the Baluba mine in 2018 to maintain control of copper and the supply of REEs.

Question 2

How has China’s trade with developing countries had an impact?

Answer 2

• Restoration of the Benguela railway in Angola.
• Restored old copper mines in Zambia.
• China’s demand for steel meant they negotiated deals with Brazil to import iron ore. This has been worth millions of dollars to the Brazilian economy, though a slowing down of China’s economic growth has caused problems for Brazil because of an over-reliance on exports to China.

Question 3

What has been their impact on developed countries?

Answer 3

• In the US, the steel belt of Pennsylvania and Ohio, cheap steel imports resulted in closure of remaining steelworks, so further economic decline and rising unemployment.
• China’s flooding of the world market with cheap steel prompted some countries to take ‘protectionist’ actions such as increased tariffs, led to ongoing trade war with USA.
• In UK, many large steelworks (Redcar) were closed or threatened with closure (Port Talbot), causing increases in unemployment and devastation of communities.