Why is everyone talking about China and BHP shares today?

BHP Group Ltd (ASX: BHP) shares are outperforming today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $62.25. In late morning trade on Monday, shares are swapping hands for $63.00 apiece, up 1.2%.

For some context, the ASX 200 is up 0.1% at this same time.

That's today's price action for you.

Now, why is everyone talking about BHP shares and China?

China eyeing more control over BHP shares

China has long been the top export market for Australia's iron ore.

Indeed, the Middle Kingdom's voracious appetite for the industrial metal, alongside copper and coal, have helped support BHP shares over the years.

You may also be aware that the Chinese government has long been trying to increase its influence over how iron ore prices are set. And to increase the nation's own exposure to the metal.

In the latest developments, two anonymous sources familiar with the matter (referenced by various news sources, including Reuters) said that global steel making giant China Baowu Steel Group is looking at taking a 15% to 25% stake in BHP's Jimblebar iron ore mine, located in Western Australia.

And Australia's opposition government is not pleased with the development. The Coalition has said that Labor must not allow foreign entities to buy one of Western Australia's top iron ore mines.

Responding to the media speculaitons putting BHP shares in the headlines, the miner said:

BHP notes the recent media speculation regarding a potential partnership involving part of the Western Australia Iron Ore (WAIO) business.

BHP has a long history of partnerships at its assets and regularly explores options that may create long-term value to its shareholders. WAIO remains central to BHP's portfolio and BHP remains fully committed to WAIO and to Western Australia.

What's the latest from the miner's WA iron ore operations?

When BHP released its full-year FY 2026 results on 18 August, the miner reported a 1% year-on-year increase in total iron ore production to 265 million tonnes.

The bulk of that came out of WAIO, which produced 257 million tonnes of iron ore in FY 2026.

BHP also achieved a 1% increase in its underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) from its iron ore division to US$14.5 billion.

Management provided FY 2027 iron ore production guidance in the range of 260 million to 272 million tonnes.

BHP shares closed up 2.7% on the day of the results release.

The post Why is everyone talking about China and BHP shares today? appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026