China’s stocks rose 4.52 percent on Thursday’s close. The benchmark Shanghai Composite Index rose 4.52 percent, or 126.00 points, to finish at 2,911.58. The Shenzhen Component Index rose 3.91 percent, or 438.43 points, to end at 11,648.35.Combined turnover expanded only slightly to 191.33 billion yuan ($28.01 billion) from 191.07 billion yuan on the previous trading day

The media is awash with reports that the Chinese are playing ball  again  with signing up new contracts worth billions of dollars.  The question is are they really ? The Chinese businessmen and bearuecats are very smart and this was evident by making a move in detaining a rio tinto official  for spying  right when negotiations were on for iron or pricing between top Australian and Chinese bearuecats and officials

shanghai sharemarket

This is also evident on how they got twiggy ( fortescue Metals group ) to give them a  much sweeter deal when spot prices for iron ore are increasingly going up.

Chinese officials hailed the deal as a welcome compromise that might help break the deadlock in annual talks with Rio Tinto , BHP Billiton and Brazil’s Vale , hoping to prevent a complete breakdown in a four-decade-old negotiated pricing ritual that is rapidly fracturing, and became further complicated this year by a corporate spying scandal.

The reason why china would rather do deals with australia is also while importing  iron ore from  australia  taking into  account he shipping  rates and  everything else it is much economical for them  to choose our companies  to trade with rather than brazil and Canada. so if they are getting a good price  for ore why wouldnt they ?

Infact they have managed to secure a very good deal when the Ironore spot market is on the rise.

HSBC’s latest research, which shows that the chart of the value of the Australian dollar is a mirror image of Chinese electricity production. which means the Chinese can invest in Australia and Australians in China without a currency risk.

iron ore australia china

The HSBC research comes at a time of deteriorating relations between Australia and China. The Fairfax press reports that Chinese state-owned media ignored the Gorgon deal and called for sanctions against Australian tourism, education and iron ore.

While china  states that  the rio tinto official was spying  for ages in china. chinese secrets are sometimes  available on the internet.The web is awash with the sites of state secrets bureaux, I discovered after a colleague dug up a report posted on one of them about the commercially and diplomatically sensitive detention of executives from mining giant Rio Tinto.

Links:

It was on www.baomi.org (which roughly translates as www.protectsecrets.org), the succinctly named Website of the apparently not-as secretive-as-its-name-suggests National Administration for the Protection of State Secrets.

Vast modern cities like Guangzhou, Shanghai and Tianjin are teeming business and political hubs that might well have important government and commercial information to worry about.

But Puyang city? I had to do a quick map check to pin down where it is (northern Henan province, if you were curious). There are secrets to protect everywhere, it seems, and you can read about the efforts in Puyang at www.pybm.cn

Highlights include “Products that can protect secrets”, “The hidden danger of blogs and measures to counteract them” and “Build a firm line of defence to protect military secrets”.