Rio Tinto chief executive Jean Sebastien Jacques said he has no real concerns about China's iron ore demand in 2017, and the indications for 2018 are positive.
"The only concern I would have - which is not about China by the way, it's more a geopolitical issue - is if there was to be a big shock in the system," he told reporters after the company's annual general meeting in Sydney.
China is the biggest market for Rio Tinto's commodities, and Asia accounts for around 70 per cent of its sales, but demand for its iron ore has been expected to taper as China's steel production plateaus.
Mr Jacques said it is absolutely clear that the Chinese government will take whatever action is required to maintain economic stability.
Economic growth in China lifted to 6.9 per cent in the March quarter, helped by gains in industrial output and factory prices.
"There is no doubt that there would be restructuring of their steel industry, primarily driven by pollution, but that could be opportunities for us for providing the right iron ore product," he said.
"We see further growth in Asia on the back of the One Belt One Road initiative launched by President Xi. This is why I have spent a lot of time in Asia, visiting China five times in the last nine months," he told shareholders earlier.
Rio believes the key source of uncertainty is China's production of iron ore, with no clarity on whether some of its shutdown production lines will be restarted in summer.
The company said it was monitoring the situation very closely.
Rio - the world's second largest iron ore exporter - returned to profitability in 2016 with a profit of $US4.6 billion.
It is currently working on three major growth projects - expansion of its Silvergrass iron ore mine in Western Australia, the Oyu Tolgoi copper project in Mongolia, and the Amrun bauxite project at Cape York in Queensland.
It has, however, maintained a cautious outlook on the commodities sector.
"It would be a mistake to conclude that our challenges are getting any easier," Chairman Jan du Plessis told shareholders.
"The global economy starts 2017 with improved manufacturing conditions but also evidence that cost pressures and tighter credit conditions in the US, the UK and China are affecting corporate earnings growth."
Rio will use the strength of its balance sheet to weather the tough times, and to reward shareholders through market cycles, he added.
The miner's shares were down $1.16, or 1.95 per cent, at $58.23 at 1525 AEST.
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