Advantage in crisis

The global economic crisis is an opportunity for Chinese companies to take advantage of bargain prices and further invest in Australian mining and resources companies, a top Chinese steel executive told the Committee for Economic Development of Australia forum in Adelaide.

The global economic crisis is an opportunity for Chinese companies to take advantage of bargain prices and further invest in Australian mining and resources companies, a Chinese steel executive told the Committee for Economic Development of Australia.

Vice-president of Jinggong Steel Building Group Margaret Ma said that although its growth has slowed to 6.8%, China is still in a positive financial position, and she is confident growth would return to 8% by the end of the year.

Ma said now is the time to benefit from the weakness of the resources sector.

“China should take advantage of the weak global commodity prices,” she said.

“One reason we are here is to find out something about investment.”

Jinggong is a significant player in the Chinese steel industry, having been involved in the construction of the Beijing Olympics National Stadium and Beijing Airport’s third terminal.

The steel company is among several Chinese outfits, along with Chinalco and Minmetals, who have recently shown interest in the Australian resources industry.

According to Ma, despite the economic downturn Jinggong would order around 400,000 tonnes of steel for use on construction in 2009.

This order is the same as last year, when China was at the height of a building boom.

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