On June 16, an official from China's Ministry of Industry and Information Technology (MIIT) commented on the alliance of Rio Tinto and BHP Billiton, stressing that they are actively seeking ways to protect the interests of Chinese steel mills. The main points made in the statement are as follows:
1. The proposed alliance of Rio Tinto and BHP Billiton has a strong monopolistic color. Since China is the world's largest importer of iron ore, the alliance of Rio Tinto and BHP Billiton will impact the Chinese steel industry and may be harmful to the interests of Chinese mills. China will keep a close watch on the alliance and find ways to cope with it.
2. The alliance of Rio Tinto and BHP Billiton should be subject to China's antimonopoly law.
3. If the alliance is found to be monopolistic, China might have to seek new policies and regulations to enable Chinese companies to have a bigger say in iron ore price talks.
4. The China Iron and Steel Association (CISA) is still the exclusive representative of the Chinese steel industry in the international iron ore negotiations.
5. The Chinese steel mills should beef up technology and innovation to cut energy consumption and raise efficiency.
6. China should increase exploration of domestic mines so as to reduce reliance on iron ore imports.