China's political answer to the RIO-BHP alliance is sure to steer some concern as they will surely try to make a point in the foreseeable future .

http://www.chinadaily.com.cn/

China concerned over Rio-BHP alliance monopoly risk

(Xinhua)
Updated: 2009-06-09 11:52

Mei Xinyu, an economist with the Ministry of Commerce (MOC), told Xinhua Monday that China should closely watch the joint venture process of the two mining giants and be ready to work with other countries to curb market manipulation when necessary, with the help of the anti-monopoly law.

Rio Tinto scrapped the proposed $19.5 billion of investment by Aluminum Corp of China, or Chinalco, on Friday.

The company announced a cooperative venture with BHP Billiton, which would pay Rio Tinto $5.8 billion to set up a joint venture to run the iron ore resources of both companies in west Australia.

Almost half of China's iron ore needed to be imported, more than half of which was imported from Rio Tinto and BHP Billiton, according to Shan of CISA.

Colin Barnett, premier of Western Australia, told Australian media last Friday China was not on the list of approvals that the two companies needed to obtain.

Internationally they would need the approval of the European Union and possibly the US Justice Department, apart from investigations at nation and state level, he said.

Also, Zhang Junsheng, director of the WTO Research Institute at the University of International Business and Economics in Beijing, said China might not have a say on the issue, as neither Rio Tinto or BHP Billiton had an affiliated company in China.

By Zhang Haizhou (China Daily)
Updated: 2009-06-10 07:19

India is attempting to extend its control over a disputed border area also claimed by China, experts said Tuesday, in response to reports that New Delhi was deploying "thousands more troops" in parts of "Arunachal Pradesh".

Reuters quoted a "governor of the remote state" as saying India will deploy "two army divisions comprising 25,000 to 30,000 soldiers each".

"It (the deployment) was part of the planned augmentation of our capabilities to defend the country ... The increase in force strength is to meet the future national security challenge," J.J. Singh told Reuters.

The report also said New Delhi would bring more firepower into the disputed zone - adding 155 mm guns, helicopters and unmanned aircraft.

Ye Hailin, an expert in India studies with the Chinese Academy of Social Sciences (CASS), said New Delhi is strengthening its control because it "knows clearly that China will not resort to military action to solve the problem".

"India is adopting this means to make its control over the area an accepted fact," Ye said.

India and China fought a brief war over the 3,500 km Himalayan border area in 1962.

Although the neighbors signed a treaty and agreed to maintain "peace and tranquility" along the disputed frontier and also agreed to find a political solution, talks have made little progress.

"It (additional deployment) is not helpful to resolve the border dispute, and could easily cause regional tension," said Sun Shihai, who is also with the CASS.

"The chance of a border conflict is not big, if India does not instigate it," he added, noting China wants peaceful solutions through dialogue.