Australian company warns of Chinese economic situation

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Waning demand for commodities from China caused by the current economic situation could lead to delays in a deal to sell AUD$10 billion (£3.9 billion) in assets.

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Originally Australian company Rio Tinto, a global miner, had pledged to sell non-core assets in 2008 in order to pay back debt.

Tom Albanese, chief executive of Rio, said that the current financial crisis had not prevented him from opposing BHP's hostile takeover offer of his company.

He said that the company "continue(s) to be very comfortable with [its] position".

Commenting on the current situation, Mr Albanese said: "In the near term, the Chinese economy is pausing for breath. China is not completely insulated from an OECD recession and we will see an impact on Chinese exports."

He explained that the slowdown in growth was principally due to restrictions on the monetary policy of the country that had been introduced by the Chinese government to help beat inflation.