China's Ministry of Commerce said Monday that local companies have great opportunities to expand overseas, citing the recent drop in resources prices and the domestic shortage of resources.

The comment by ministry spokesman Yao Jian came after Rio Tinto PLC (RTP) recently dropped a planned alliance with Aluminum Corp. of China, or Chinalco, ending what would have been one of China's biggest outward investments.

Speaking at a regular media briefing, Yao said Rio made a corporate decision based on commercial interests.

-By Terence Poon, Dow Jones Newswires; 8610 6588-5848; terence.poon@dowjones.com