China Business Journal reported that China government has started an investigation into its neighbors' resources reserves, such as iron ore and is seeking possibilities of mergers and acquisitions in the future.
An unnamed official with the science and international cooperation department of the Ministry of Land and Resources, said the investigation, launched by China Ministry of Land and Resources and the Ministry of Finance, targets iron ore, gold, copper and bauxite.
The official said according to the report that a reason for the ministry to work on an overseas resources strategy is iron ore pricing power held by BHP Billiton Ltd, Rio Tinto PLC and Vale SA.
The report quoted the official and Mr Song Kui a government think tank research in northwest China Heilongjiang province as saying that besides some neighboring countries such as Russia, China is also investigating countries in East Asia, Southeast Asia, Africa and South America.