Chinese Economy

ArcelorMittal, the world’s biggest steel producer, is keen to have a 25 percent stake in China’s second largest steel firm, Angang Steel, in an effort to extend its presence in that country.

Lakshmi Mittal, the main owner of ArcelorMittal, is said to have made this proposal to Zhang Xiaogang, Angang’s chairman, in a private meeting just over two months ago.

Although financial terms were not discussed, a 25 per cent stake in Angang would cost ArcelorMittal at least five billion dollars, according to Angang’s current market valuation, reports The Financial Times.

In recent weeks, china has begun its strongest effort in global PR since the outbreak of the SARS disease. Government Officials and Diplomats are conducting various news conferences as well as trade and information shows on product and food safety. This is to show the world that chinese goods are high in quality and safety standards.