India announced that it would impose an export tariff of 300 rupees on each ton of its iron ores. China being the third largest iron ore importer from India, the new policy will put a very heavy pressure upon Chinese iron & steel enterprises.

"We will not make compromises," said a person from China Chambers of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC). "Actually, China imports more than 75 million tons of iron ores from India every year, thus India's new tariff policy will cause us a loss of no less than $500 million. We demand that all the contracts signed before March should stick to the original prices, " said Chen, the director of CCCMC.

Sino-Indian iron ore trade has been stopped since the day India announced the new tariff policy. In the future, China will cut the amount of iron ores imported from India.