Australia needs to drop its “obsession” with China, according to one political strategy think tank.

It comes after yet another economic threat emerged on Thursday.

China is reportedly threatening to cut off Australia’s $63 billion iron export pipeline.

It comes on the back of threats to our beef, dairy and barley industries.

Peter Jennings, Executive Director of the Australian Strategic Policy Institute, told Tom Elliott it was time Australia looked to “diversify”.

“We have been too collectively obsessed with China, I think, for a generation,” he said.

Mr Jennings said there were plenty of opportunities in India and the rest of Asia.

He also said Australia should call China’s bluff, pointing out the fact there was a demand for Australian goods and China was effectively “punishing its own people” if it cut back.

“They have a need for these products,” he said.

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