secure in the knowledge that democracies don't fight back.
Depends on what you are expecting in a "fight back". Australia has taken China to the WTO over the tariffs put on wine. Slow and ponderous but highlighting the rules based system that world trade is meant to abide by. Its China that is overestimating what its economic power can achieve.
Australia failed to halt iron ore exports because it would be locally unpopular.
Australia hasn't failed anything of the sort. Its China that requires the iron ore so have not banned its import. Why would Australia ban the export of a major contributor to its GDP? Far from being unpopular a lot of Australians would be more than happy if the exports were closed to China. Whatever goodwill China was trying to foster with its big cuddly panda persona has long since dried up with political interference exposed and punitive trade sanctions. It also doesn't wash when the CCP Ambassador resorts to Communist rhetoric to try and put Australia back in its place.
Exactly my point, China needs trade partners, raw materials and global trade routes. They cannot afford to ruin relations.
Thats good in theory but political rhetoric and military jingoism trumps common sense and any trade considerations.