I would add that companies doing business with China have a history of losing out. People continue to underestimate the value of the rule of law.
China is negotiating with Rio Tinto. They now have a few extra poker chips. I predict the Rio employees will be put on trial and perhaps sentenced to death.
Then a long term contract will be worked out that reduces the going price of iron ore by 200 billion to China over many years and the Rio employees will be sent home.
You have to admit, the Chinese know how to negotiate hard. I wonder if Tinto's leaders still want the Chinese to hold a controlling stock position in the company.
Also I am guessing the CEO wont be going to China to wrap up negotiations.
China Piles Legal Pressure on Rio [View article]
China is negotiating with Rio Tinto. They now have a few extra poker chips. I predict the Rio employees will be put on trial and perhaps sentenced to death.
Then a long term contract will be worked out that reduces the going price of iron ore by 200 billion to China over many years and the Rio employees will be sent home.
A Spy in the House of Iron? [View article]
Also I am guessing the CEO wont be going to China to wrap up negotiations.