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China Focus...

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Talking China...

I only agree with this: The Chinalco-Rio deal would have been a piece of major integration of our two economies... the rest, I am not so sure.


Because some of the assumptions made is not exactly reflective of what is happening within the Chinese business community as well as within the Chinese leadership.

If you question this observation, you can check out one of the headlines readily available in the NET, like these two:

China ready to cut steel output if ore talks fail

BHP, Rio may face China sanctions on ore deal

They are going for broke and they are not going to play nice, seems to be what is being reported. May be the Chinese are just posturing, who knows?

But there are ways to tell if they really mean business - judge them by their actions. Watch If they will hold true with their threats by not compromising on the iron ore price discount and their next official reaction to RIO/BHP's venture.

The bad here is this, if and when it becomes "official", they won't be backing down or holding back due to face saving reason. When that happens, it will be a lose-lose situation all round. Bad!

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