The Deal Is Simple. Australia Gets Money, China Gets Australia – China News
www.businessweek.com — The Chinese aluminum company Chinalco owns about 9 percent of Rio Tinto, which has been transformed by China's demand for iron ore into the second-largest miner in the world. Rio Tinto, which had a net income of $1.4 billion in 2003, now earns more than $10 billion a year, and 70 percent of those profits are from iron ore. Until last year, China was trying to buy more of the company, a move resisted by Rio, which would have had its largest customer even more involved in decision-making.
Thank you Heiney for sharing this. This is an excellent article and I enjoyed reading it.
Well, now comes my piece of cake about it: That is called business. Blame the Australian government for their short sighted actions. Anyways, this will not last forever and the global theatre and economy will reshape and re-adjust itself. Hopefully without a war in which China will certainly implode and fall back into isolation. I don't think this will be a good thing to happen.
The world is very unbalanced right now and it cannot go on like that anymore. The Chinese - at first sight - appear very smart in their way of doing business, but in fact they are short sighted too, they are blinded by their own immediate demands, their own views, their own survival, their own stomach and their own wallet and do not seem to understand what will happen tomorrow, when the big lake is out of fishes...They milk the cow, but they do not want to feed the cow. This is not sustainable, Beijing. Granted, the U.S. American government is quite the same, but still different - perhaps more subtile in their actions - than the Chinese. The USA has better marketeers...
A closer cooperation between Europe and hopefully Russia (!) and USA is the best chance to challenge the undeniable coming competition that will reach its decisive peak in the next 5 to 10 years for sure. And it will concern us all in the northern hemisphere.
Spain is protecting its own markets at an increasing rate; for example the textile, fashion, shoes industry in Spain which is traditionally very developed (There are high quality manufacturers I know which were founded in the 18th century and would have been go down without state support), closed its market to cheap chinese textile imports at a great extend and enforced controls for imports from Asia to protect its own market. At the same time, key industries are being supported by the government to increase their production capabilities to become more independent of imports (here: China).
I think this is a necessary trend and I agree with the EU's upcoming measures and plans.
The global economy was and is great but now it is time to pull down the speed. Let's go back to a local and regional market for a while. This is what China is most afraid of. Australia may become rich but one cannot eat money and one day the lake is empty. And then?
Glad you enjoyed it. Another rather long article, but well worth the read.