China: Behind the Bid for a BHP Billiton Stake

On the same day that Australia's Prime Minister Kevin Rudd is due to arrive in Beijing, rumors emerged that China is about to buy a substantial stake in Australia's BHP Billiton — the world's largest mining company — in order to thwart its bid to swallow up London-based mining conglomerate Rio Tinto Group and create a mining goliath worth nearly $350 billion, The Australian reported April 9. Reuters later reported rumors circulating on trading floors that China's largest steel maker, Baoshan Iron and Steel Co., is the potential buyer. If these rumors are true, China's move could well help the Australian firm realize its ambitions rather than block them.