Following an opening day focused on tourism, the second day of Albanese’s week in China has been centred around Australian iron ore exports and China’s efforts to decarbonise the sector.

The prime minister was joined by business leaders from miners BHP, Rio Tinto, Hancock Prospecting and Forrest’s Fortescue for a first-of-its-kind meeting with Chinese steelmakers, which Albanese said was a success ahead of his meeting with President Xi Jinping.

“This is the first time Australia’s iron ore leaders have met with China’s steel industry leaders with an Australian prime minister here in China,” Albanese said.

“The discussions will resonate here, no doubt, with the leadership of China, that I have discussions with tomorrow.”

Iron ore is Australia’s biggest export, for which China is our biggest buyer.

Australian iron ore exports to China topped $120 billion in 2024, according to United Nations figures, while the Australian Strategic Policy Institute said in November 2023 that Australia supplied 61 per cent of China’s iron ore imports.

However, China’s focus on emissions reduction could threaten that economic buttress, as Australian ore refinement requires extra energy expenditure.

But Albanese said today’s talks about decarbonisation were “very successful”.

“These discussions were an important step forward between our two nations,” he said.

“We want to see a sustainable steel sector in China and globally. We want to build a future that keeps Australian jobs and our economy strong.”

Forrest also welcomed the meeting at a time when security in the Indo-Pacific – particularly China’s role in it and Beijing’s relationship with Canberra – is firmly in the spotlight.

“We face a future of great instability with the environment and the atmosphere, not so much bilateral relationships,” the billionaire said.

“The instability in the atmosphere is poorly understood generally across industry… creating green metal in Australia, processed into green steel in China, is a massive single contribution which we can make for every man, woman and child in Australia.”

AUKUS rumours hover over China visit

However, national security and defence questions continued to follow Albanese today, particularly after it emerged yesterday that the US could push to mandate Australian support over a potential Taiwan conflict as part of a revised AUKUS agreement.

Asked about that scenario today, Albanese played a straight bat.

“I’m very focused on my purpose in being here,” he said.

The prime minister also refused to be drawn on what he will say to Xi about other topics, including the Chinese flotilla that circumnavigated Australia earlier this year and the looming buyback of Darwin Port off its current Chinese operator, when the leaders meet.

“I will have a discussion with the president, I will treat him with the respect I would any leader of another country and not foreshadow everything a day in advance,” Albanese said.

National security expert Michael Shoebridge said Albanese was walking a tightrope on the issue, and that it was clear there was some level of concern in Washington DC about the alliance.

“I think our whole defence strategy is we don’t fight alone,” Shoebridge told Today.

“We work with partners and allies to prevent wars, but we’ll fight together if a war happens. That’s the whole strategy.”

Albanese has previously pushed back on US demands for an increase in defence spending.