, saying financial markets can absorb defaults, in an assessment that could buoy iron ore, the nation’s most significant source of export income.
But China’s Ambassador to Australia Xiao Qian warned against letting momentum stall in the effort to reset the bilateral relationship, suggesting co-operation on climate change action was one way for the two countries to work together, and even go as far as jointly manufacturing electric cars. “I feel we are in something of a negotiation process to find viable parameters within which two quite different countries can interact and get along,” Mr Fletcher said.
But Mr Fletcher was not as pessimistic over China’s property sector as it underwent a deleveraging with projects being halted and some developers defaulting.“You may see some rather alarmist press reporting about the implications of difficulties in the property sector for the broader economy, but judgment remains there is sufficient capacity in the financial sector to absorb the costs of deleveraging.
He said talks were underway between the two governments on celebrating 50 years of diplomatic ties between China and Australia – which Beijing has put much stock in – including receptions in both capitals and an exchange of messages between leaders.