Rio Tinto sees more growth in China

New Straits Times - - Business -

SYD­NEY: Lat­est in­di­ca­tors on China’s econ­omy point to con­tin­ued growth through next year, ac­cord­ing to min­ing gi­ant Rio Tinto Group, which counts the world’s No. 2 econ­omy as its big­gest cus­tomer.

“Are we con­cerned about the Chi­nese eco­nomic health? The answer is no,” said chief ex­ec­u­tive of­fi­cer Jean-Se­bastien Jac­ques yes­ter­day, here. “The indi­ca­tions are pos­i­tive for 2018 as well, but it’s early days.”

He re­vealed he vis­ited the na­tion five times in the past nine months.

Rio Tinto, which had about 200 em­ploy­ees in Shang­hai and Bei­jing as­sess­ing data on China, last week re­viewed the out­look for the next year’s econ­omy, said Jac­ques.

“The only con­cern I would have, which is not about China by the way, it’s more a geopo­lit­i­cal is­sue, is if there was to be a big shock in the sys­tem.”

Growth in China un­ex­pect­edly picked up to 6.9 per cent in the first quar­ter, clock­ing its first back-to-back ac­cel­er­a­tion in seven years, as in­dus­trial out­put ad­vanced and fac­tory prices surged. An­a­lysts pro­jected faster eco­nomic ex­pan­sion in each of the next four quar­ters in a Bloomberg sur­vey from April 1825, com­pared with fore­casts in the March poll.

Rio gen­er­ates about 43 per cent of rev­enue in China. Bloomberg

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