Failed deal sours relations

The West Australian Premier, Colin Barnett, says the failed Chinalco-Rio Tinto deal has soured relations between Australia and China.

Rio Tinto last month rejected a huge investment by the Chinese-owned aluminium giant and instead signed a deal with rival miner BHP.

Just weeks later, Rio executive Stern Hu was detained in Shanghai.

Mr Barnett is in China for a week-long trade tour, and met executives from Chinalco in Beijing today.

He says the aluminium giant is clearly disappointed that the Rio Tinto deal collapsed.

"There is no doubt that the failure of the Chinalco deal has cast a cloud and somewhat soured relations between Australia and China, particularly in the iron ore trade," he said.

"It is quite clear that there are some tensions, I've talked about that with the various business groups I've met with."

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