Investing.com - Iron ore tycoon Andrew Forrest, chairman of Fortescue Metals Group Ltd (ASX:FMG), expressed his support for U.S. endeavors to challenge China's stronghold on the green energy supply chain. He believes this rivalry is beneficial globally if it remains commercially driven and competitive.
Forrest warned that any geopolitical or military conflicts arising from these tensions would be unwise and detrimental. He stressed the importance of keeping competition within commercial boundaries without escalating into a full-blown conflict.
Despite recent concerns over China's real estate sector, Forrest maintains an optimistic outlook on the nation's economy. During his visit to various Chinese cities, he observed numerous construction cranes dotting their skylines—a positive sign indicating ongoing development. This sentiment aligns with remarks made by Vandita Pant, chief commercial officer at BHP (ASX:BHP) Group Ltd., another prominent Australian iron ore mining company.
In recent weeks, iron ore prices have dropped below $100 per ton—a price point not experienced since before China ended its Covid Zero policy last December. The country’s economic recovery has fallen short of initial projections; however, industry leaders like Forrest continue to maintain confidence in its resilience.