AAP reported that iron ore miner Fortescue Metals has sought to reassure shareholders that the economic credentials of its biggest customer, China, remain sound following the country's recent leadership transition.
Mr Nev Power CEO of Fortescue also dismissed suggestions that China's economic growth could be faltering, amid rampant inflation.
Mr Power said that instead to projections that China would post annual growth of around 6% to 7% in the years ahead.
Mr Power in the zone conference in Perth said that "When you're on the ground in China it's obvious that it's not negative growth."
He said that "Every time you go, you see the physical manifestations of the growth in the economy, whether that's additional skyscrapers or cranes or freeways or airports or cities that have been built."
China's economic growth is crucial for Fortescue, which recently retrenched 1000 staff and cut spending by USD 300 million after the iron ore price fell below USD 90 a tonne.
He added that inflation in China was largely confined to property prices and food prices, as the new leadership focused on growth. Were there to be real negative growth in the country, you would just see inflation in prices but no physical signs of growth.
He said that China would remain a key focus for Fortescue.
The critical factor for Fortescue's success was developing infrastructure that allowed the company to continue being a reliable and competitive supplier to China.
He said that "To be able to afford the massive amounts of capital, Chinese partners make an absolutely perfect fit in developing that infrastructure."
He added that Chinese investors were becoming much more comfortable with joint ventures and partial ownership, rather than wanting to retain full control.
He further added that Australia needed to continue developing its relationships with both the United States and China.
