MELBOURNE, Oct 2, 2008 (AFP) - Anglo-Australian mining giant Rio Tinto said Thursday the turmoil in the global financial markets would not alter its rejection of a hostile takeover bid by rival BHP Billiton.

Speaking a day after Australia's competition watchdog said it would not oppose the 120 billion US dollar merger, chief executive Tom Albanese said Rio Tinto's markets remained in good shape.

'We believe that the current conditions do not impact on our rejection of BHP Billiton's pre-conditional offer,' Albanese told a Melbourne Mining Club lunch.

In particular, China was weathering the crisis better than economies in the Organisation for Economic Co-operation and Development and he expected demand from the booming Asian giant would remain 'robust' despite slowing growth.

'China is pausing for breath. We expected it would and Rio Tinto has planned accordingly,' Albanese said, adding that Rio expects China's GDP growth to slow to 9.0 percent in 2009 from 10 percent in 2008.

'This foreshadowed deceleration has resulted in a slowing of Chinese commodity demand growth from the overheated levels we saw in 2007,' he said.

'The outlook remains that constrained supply conditions and firm demand from China and other developing countries should establish the basis for higher-than-average prices through 2009.'

The hostile bid for Rio by the world's largest miner has created concerns around the globe -- including China -- that the mega-miner would have too much control over prices and supply.

The Australian Competition and Consumer Commission said Wednesday however that it had found the proposed acquisition would not substantially lessen competition.

The European Commission is due to hand down its decision on the takeover by January 15.