Federal Treasurer Wayne Swan is done battling out with Australian mining leaders on the resources super profits tax and took its fight now in China.

Mr. Swan arrives in Shanghai on Thursday to promote Australian goods and services to China. But it was reported that his main goal of the visit might overshadow the controversial proposed new tax.

Several leaders such as Premier Colin Barnett, mining Newcrest chief Andrew Forrest and regional development representative Barnaby Joyce have expressed the tax may benefit Chinese companies at the expense of the Australian companies.

However, the Chinese resource companies have hit back, stating that they refuse to pay Australia for the profits earned from digging the country's iron ore, and the new tax might be a big obstacle for investments.

Shun-sheng Chen, a Chinese resource analyst, commented that the country's iron and steel industry and the Chinese government are closely watching the mining tax reform of Australia.

He told media that if mining tax is pushed through, investment costs will increase as the price for iron ore will probably go up as well.

He expects that Mr. Swan may hear concerns raised by the Chinese Government since its investors will become tax payers.

Despite these concerns, Mr. Chen said China will still need to import iron ore for the next several years.

He suggests that China will retain its demand for overseas iron ore at about 700 million tonnes annually in the future.

On the other hand, Mr. Swan has confirmed he will discuss the benefits entailed on the new mining tax during a G20 summit in South Korea and is expecting keen interest from the world finance ministers.