The Ministry of Commerce made those remarks at a regular press conference on June 15. Spokesperson Yao Jian stressed that Chinalco and Rio Tinto should resolve their business issues on the basis of their business principles through legal process. Their case will not affect the overall economic and trade ties between the two countries.

 

Rio Tinto revoked its 19.5 billion USD strategic cooperation with Chinalco on June 5. That deal could have increased the stakes of Chinalco, the largest single shareholder of Rio Tinto, from 9 percent to 18 percent.

 

Yao stressed that the free trade agreement talks, bilateral investment and trade in natural resources have all been going well between China and Australia so far. China is the second largest trading partner of Australia and Australia is China’s eighth largest trading partner. They are important to each other.

 

Statistics from Chinese customs show that Sino-Australian trade reached some 20.5 billion USD for the first five months of the year. Although it was down by 10.8 percent year on year, the decrease was much lower than the 24.7 percent slump of China’s total foreign trade in the same period.

 

However, Yao also noted that it was “understandable” that Chinese industries had shown deep concern over the merger of Rio Tinto-BHP Billiton as the two giants held 36 percent of the global iron ore supply.

 

If the merger has enough implication on the Chinese market according to China’s Anti-Monopoly Law, then the case should be subject to review by Chinese authorities.

 

The Ministry of Commerce, which is responsible for reviews of cases involving business concentration, has not received an application for such a review from the Australian giants.

 

Chinese enterprise will continue and accelerate their process of going international in the context of China’s growing economic strength, increasing forex reserves, sharpening competitiveness of Chinese enterprises and declining costs of buying resources and resource-based companies on the world market, noted Yao.

 

However, he warned that Chinese investors should build up more experience in implementing their overseas expansion strategies, particularly on multi-cultural communication, management skills and personnel training.

 

“Chinese enterprises should have more understanding of international rules and industrial development to make prudent decisions,” he said.