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China's Other Move

In addition to trying to cut a deal with RTP on aluminum, and offically "backing off" iron ore, China is being disingenuous. Because China has already cut a deal with Fortescue, the THIRD largest iron ore producer in Australia.

For now, Fortescue is too small to affect global iron ore markets. So even though it negotiated a 35% year-over-year reduction in prices, that won't "stick" in the market place. That may change, however, as the two parties get closer. China is planning to lend Fortescue  some $5 billion to develop its infrastructure, and its reserves. That would enable Fortescue to be a global player, and give BHP and RTP a run for its money.

China is seldom defeated or outwitted when the resources are anything close to even. In this case, China is by no means behind the curve, and may end up with the upper hand.