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Rio's makes an each-way bet on China

Published: Jul 14,2010 08:51:06

 

RIO Tinto's chief executive for China and energy, Doug Ritchie, says there is a duality in Australia's relationship with China.

 

He described it as a "sense of admiration mixed with fear, and optimism undermined by doubt".

 

Speaking at the launch of the 2010 China Update Book at the Australian National University in Canberra , Mr Ritchie said: "We are grateful for the economic benefits we have enjoyed as a result of China's phenomenal growth, but we are afraid of the level of dependence this has created between our two nations.

 

"We speak of our desire for a close relationship with China, but are nonetheless startled when the dragon turns up on our doorstep asking to come in."

 

Mr Ritchie, who last year led the Rio team that sought a deeper engagement -- eventually aborted -- with its biggest shareholder, Chinese company Chinalco, said China accounted for a quarter of all Rio's sales revenue.

 

But he expected China's double-digit growth "through energy-intensive polluting activities that add relatively low value" would be replaced, with more focus on efficient resource consumption, environmental sustainability and living standards.

 

He said Australian uranium and coal would continue to be sought by China as nuclear power and cleaner coal helped to minimise the environmental impact.

 

Source: The Australian

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