Commenting on the collapse of the proposed deal between Australian miner Rio Tinto and China's state-owned aluminum giant Chinalco, Chinese Ministry of Commerce (MOC) spokesman Yao Jian stressed that the case would not affect the overall economic and trade ties between the two countries.
Mr. Yao stated that it was normal for Chinese enterprises to seek to develop internationally in the context of the financial crisis, but that they should have a greater understanding of international rules and of industry development in order to make prudent decisions. He added that the two companies in question should resolve their business issues on the basis of business principles through legal process.
As regards the proposed Rio Tinto-BHP Billiton merger in terms of their interests in Western Australia, Mr. Yao remarked that Rio Tinto and BHP Billiton rank second and third respectively in the global iron ore trade, while China is the largest iron ore importer in the world. The alliance of Rio Tinto and BHP Billiton would surely affect the global iron ore supply, he said. So far, the spokesman said, the Australian iron ore giants have not made any application to the Chinese antimonopoly authorities.