Australia & China launched a groundbreaking joint policy dialogue focused on steel sector decarbonisation, establishing bilateral cooperation frameworks despite geopolitical tensions. The initiative addresses industries collectively generating approximately 10% of global CO₂ emissions, targeting technology collaboration across hydrogen-based direct reduction, carbon capture systems, & electric arc furnace optimization. Australia's position as the world's largest iron ore exporter complements China's status as the dominant steel producer, creating natural synergies for collaborative emissions reductions. The dialogue encompasses policy coordination, research partnerships, standards harmonization, & investment facilitation supporting both nations' climate commitments.