Xinhua reported that the new alliance between Rio Tinto and BHP Billiton Ltd might lead to a monopoly operation and China should be prepared for anti-monopoly measures.

Mr Mei Xinyu an economist with the Chinese ministry of commerce said that China should closely watch the joint venture process of the two mining giants and be ready to work with other countries to curb market manipulation when necessary with the help of the anti-monopoly law.

Mr Zhang Yansheng director of the Institute of Foreign Trade of the National Development and Reform Commission added that “It is something other than economic concern."

Rio Tinto scrapped the proposed USD 19.5 billion of investment by Aluminum Corp of China or Chinalco on Friday. The company announced a cooperative venture with BHP Billiton which would pay Rio Tinto USD 5.8 billion to set up a joint venture to run the iron ore resources of both companies in west Australia.

(Sourced from Xinhua)