Comments on: Chinese media’s response to the Rio-Chinalco deal http://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Peter Drysdalehttp://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/comment-page-1/#comment-34853 Peter Drysdale Sun, 14 Jun 2009 20:21:00 +0000 http://www.eastasiaforum.org/?p=5050#comment-34853 Michael I agree with you that it is now becoming clear the deal was not, for a variety of reasons, commercially acceptable to the parties principal. However, a bigger point that I have been making is that what is important is the way in which the commerce, the policy and the politics were managed has left us with a set of problems that we have to deal with. There is, incidentally, remarkably little 'Chinese hysteria' over the episode so far. Peter Michael
I agree with you that it is now becoming clear the deal was not, for a variety of reasons, commercially acceptable to the parties principal. However, a bigger point that I have been making is that what is important is the way in which the commerce, the policy and the politics were managed has left us with a set of problems that we have to deal with.
There is, incidentally, remarkably little ‘Chinese hysteria’ over the episode so far.
Peter

]]> By: Michael Niddriehttp://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/comment-page-1/#comment-34716 Michael Niddrie Sat, 13 Jun 2009 23:39:51 +0000 http://www.eastasiaforum.org/?p=5050#comment-34716 As a substantial investor I'm far better off with the new deal that was placed on the table. Commercial realty won the day and if Chinalco had made a better offer at the right time their offer would have won the hearts of the shareholders. They didn't so they ran a soon forgotten second place. I am not surprised at the hype and hysteria that is being whipped up by non stakeholders raising hypothetical issues that have very little to do with the best interest of the shareholders. I'm selfish as I think the shareholders interests are paramount in this type of transaction. If you were a shareholder so would you be. Dont be fooled by the rheteric coming from the chinese, the simple fact is the chinese, japanese & koreans can't go without the low cost-high grade products that are strategically placed geographically which will continue to be bought by them in their best interest. As a substantial investor I’m far better off with the new deal that was placed on the table. Commercial realty won the day and if Chinalco had made a better offer at the right time their offer would have won the hearts of the shareholders. They didn’t so they ran a soon forgotten second place. I am not surprised at the hype and hysteria that is being whipped up by non stakeholders raising hypothetical issues that have very little to do with the best interest of the shareholders. I’m selfish as I think the shareholders interests are paramount in this type of transaction. If you were a shareholder so would you be. Dont be fooled by the rheteric coming from the chinese, the simple fact is the chinese, japanese & koreans can’t go without the low cost-high grade products that are strategically placed geographically which will continue to be bought by them in their best interest.

]]> By: Joel Rathushttp://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/comment-page-1/#comment-34473 Joel Rathus Fri, 12 Jun 2009 15:28:10 +0000 http://www.eastasiaforum.org/?p=5050#comment-34473 Thanks Yuan, good to get the Chinese perception of this issue. Japan has recently signed an investment agreement with China (to grant further protections for intellectual property rights). Do you think Australia ought to make some additional effort, such as an investment agreement, to dispel Chinese uncertainities? Perhaps as a part of the FTA (still) under negotitations? Or do you think it best to let the issue quietly fade? Thanks Yuan, good to get the Chinese perception of this issue. Japan has recently signed an investment agreement with China (to grant further protections for intellectual property rights). Do you think Australia ought to make some additional effort, such as an investment agreement, to dispel Chinese uncertainities? Perhaps as a part of the FTA (still) under negotitations? Or do you think it best to let the issue quietly fade?

]]> By: Lincoln Funghttp://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/comment-page-1/#comment-34411 Lincoln Fung Fri, 12 Jun 2009 02:24:11 +0000 http://www.eastasiaforum.org/?p=5050#comment-34411 While I have been critical to the Australian government's handling the matters regarding to Chinese investments and some commentators and politicians fanning ignorance and hostility towards such investments, I came to realise that the Chinalco - Rio deal was probably made a bit too complex to look attractive to more people. Some Australian commentators say it was too complex, including more 600 pages documents and involving complex transactions. In hindsight, maybe a less complex deal would have been much better. Starting with complexity and failure was not good for confidence building on both sides. Maybe that is a lesson for all involved. Of course, how to manage issues involving the politics and public relations in Australia by Chinese investors remains as important as ever, if not more so. That is also investment, and can't and shouldn't be ignored. While I have been critical to the Australian government’s handling the matters regarding to Chinese investments and some commentators and politicians fanning ignorance and hostility towards such investments, I came to realise that the Chinalco – Rio deal was probably made a bit too complex to look attractive to more people.

Some Australian commentators say it was too complex, including more 600 pages documents and involving complex transactions. In hindsight, maybe a less complex deal would have been much better.

Starting with complexity and failure was not good for confidence building on both sides. Maybe that is a lesson for all involved. Of course, how to manage issues involving the politics and public relations in Australia by Chinese investors remains as important as ever, if not more so. That is also investment, and can’t and shouldn’t be ignored.

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