China is looking to expand its mining and metal holdings in developed economies, moving beyond its focus on least-developed economies, like the Congo (though there rightly may be other reasons there). According to the FT, China is eyeing Australia, and especially Canada:
“The Chinese realise there are massive opportunities in the market,” said Keith Spence, president of Global Mining Corp, a China-focused resource investment company.A year ago, they were going to Africa to acquire early-stage development assets. But now they are looking for larger tonnage, longer life, later-stage assets. There is less of an emphasis on emerging markets, because now there is choice.”
Moves to purchase more developed mining assets mirror trends in the agricultural sector. Moving beyond Africa, China has recently been buying up developed land assets in Latin America, most notably in Brazil and Argentina.
Indeed, when China's so-called "African resource grab" came to the forefront of development debates, I remained of the opinion that this was going to be short-lived. I argued then, and hold now, that for major Chinese resource companies Africa is somewhat of a testing ground - if they can do it there, they can do it anywhere. With the (continued) acquisition of capital from their African investments, and the opportunity to improve upon strategies in perhaps the most difficult of waters, I suspect that we will begin to see more and more Chinese firms trying to expand into developed economies. China will still remain in Africa, but the continent will no longer be their primary focus.