Now that the Chinalco deal is finally called off, it will be interesting to see where the name goes from here. The Chinalco deal appeared a sensible one at the start of the year given the state of the world, but as commodity prices recovered and the attractiveness of the assets became clear, it looked less good.
Questions are though -
How will this affect relationship with China? maybe in the longer term this will end up benefiting competitors?
What does this imply for government debt? The point about foreign nations building up large holdings of government debt must be linked to their abilitity to buy other things. If they west only wants them to buy govt bonds and rejects them any time they try and invest in strategic assets (Hummer aside) will they change their attitude?
