A lesson from the failed Chinalco Rio deal

Comments on Peter Yuan Cai “Chinese media’s response to the Rio-Chinalco deal”, 12/06/2009, http://www.eastasiaforum.org/2009/06/12/all-quiet-on-the-eastern-front/

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 than 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.

It is also important investment that Chinese investors need to make. Investing wisely and having good returns to such investment will benefit both sides. It is in both sides' interest to foster such investment.