There you have finally nailed it. They are still to lift many more out of poverty while uplifting many millions more just barely above the poverty line. In that they still have a long way to go. They know it would set them back to halt iron ore shipments. Why do you think they are still buying Australian ore at record prices? As to coal China is building 88 GW of coal fired power stations part of a total of 247 GW planned. They were in trouble last Winter with heating cut backs due to coal shortages Boycotting australian coal will put the price through the roof. They have underestimated Australias resolve and are now trying to make an example to show countries their compliance is expected as part of the trading terms. The U.S. with all its many faults is still way ahead of anyone else as a world power. The E.U. is a paper tiger and always will be with 27 self interested nations. It cant even deal with Turkey or for that matter its own illegal migrant problem, let alone a power like China. It's planning on making itself or at least its biggest member more energy dependant on its biggest rival.
You seem to imply that trade is a means in itself and that rogue nations should go on unchecked for the sake of trade.
Nations cannot allow themselves to be bullied. It just kicks the day of reckoning further down the road and it will come. The Phills are a good example of how far aquiescing to China gets you.