Rio Tinto optimistic about biz outlook

Global mining giant Rio Tinto is highly optimistic about new business prospects in China, anticipating fresh opportunities arising from Beijing's commitment to high-standard opening-up in key sectors in the coming year.

Commenting on China's crucial Central Economic Work Conference, Frank Xu, CEO of Rio Tinto China, emphasized that the country's sustained growth and sweeping policy shifts are creating fertile ground for international businesses.

"China remains the world's largest consumer and producer of metals, and its pursuit of high-quality development supports long-term demand for our products," said Xu.

"The shift toward higher value-added manufacturing, together with the ongoing modernization of infrastructure, will continue to underpin demand for metals," he said.

China's continued focus on sustainable development and its commitment to address climate change will further increase the need for copper, lithium, aluminum and high-quality iron ore, all essential for renewable energy systems and particularly for growth in the electric vehicle sector, Xu added.

Industry experts believe the ongoing transformation and upgrading of China's manufacturing sector provide significant global business opportunities for multinational corporations, moving beyond traditional supply chain models to embrace innovation and high-value collaboration.

The consistent optimism expressed by multinational corporations regarding the transformation and upgrading of China's manufacturing sector suggests a fundamental shift in the nature of foreign engagement with the Chinese economy, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

This is no longer primarily about leveraging low-cost labor for export manufacturing, but more about co-evolving with China's push for "high-quality development" and technological self-reliance, he said.

Rio Tinto is actively tapping into China's world-class engineering capabilities. The company has signed a Memorandums of Understanding with major Chinese engineering firms to integrate more design expertise from China into its global projects, demonstrating that China is now a source of capabilities and innovation for international operations.

Furthermore, China's leadership in decarbonization technology is becoming a valuable export.

Rio Tinto and China's State Power Investment Corp, for example, launched a trial of battery-swap electric haul truck technology at the Oyu Tolgoi copper mine in Mongolia, showcasing collaboration that drives low-carbon innovation beyond China's borders.

Battery swapping technology, already applied on haul trucks in mining operations across China, allows a battery-powered electric vehicle to have its discharged battery pack quickly exchanged for a fully charged one, instead of recharging the vehicle at a static charging station.

Xu said the company remains confident in China's sustained growth and long-term development, citing the country's "solid" economic fundamentals and "remarkable resilience".

"As we move into the first year of the 15th Five-Year Plan (2026-30), we remain confident in its sustained growth and long-term development."

"Breakthroughs in AI, robotics and decarbonization highlight the strengthening role of new quality productive forces, which will create fresh opportunities for global businesses in the year ahead".