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CANBERRA -- Australia still welcomes Chinese investment, despite the recent collapse of the Chinalco-Rio Tinto deal, said Australian Foreign Minister Stephen Smith Monday.

"We continue to welcome Chinese foreign investment just as we welcome foreign investment generally," he said in Perth.

Last Friday Rio Tinto revealed it had shelved a deal with Chinese company Chinalco and would join its Pilbara iron ore operations with its rival BHP Billiton.

He commented the Rio outcome was a commercial decision by the parties.

"As I say, that's a matter for them, but it will of course be subject to regulatory approval, but the relationship between Australia and China is a strong one and China understands that when overseas foreign investment is made from whatever source often it's subject to foreign investment approval," he added.