Australian Treasurer Wayne Swan said Saturday Chinese investment is welcome in Australia when it's in the national interest.

He said he has made it clear to the Chinese, as has the prime minister Kevin Rudd. But Swan refused to speculate whether the collapsed Rio Tinto-Chinalco deal could affect future business relations with China.

Speaking ahead of the Queensland ALP conference in Brisbane, Swan defended Rio Tinto's decision to dump Chinalco and instead forge a joint venture with local rival BHP Billiton, saying it was in the national interest.

Swan dodged questions about the potential fallout the move could have on future investments.

"The one thing I never do is speculate about applications before the (Foreign Investment Review) board," he said.

"Rio's made their decision and Chinalco's made theirs, completely independent of government."

Mining giant Rio Tinto on Friday decided against a US$19.5 billion deal with Chinalco in favor of a new iron ore agreement with BHP Billiton.

(Xinhua News Agency June 7, 2009)