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Australia warns China on spy case Australia warns China on spy case
(about 1 hour later)
Australian Prime Minister Kevin Rudd has warned that China has big economic interests at stake in the case of a mining executive accused of spying.Australian Prime Minister Kevin Rudd has warned that China has big economic interests at stake in the case of a mining executive accused of spying.
He said the matter was being watched closely from abroad.He said the matter was being watched closely from abroad.
Mr Rudd has been under pressure at home to be more assertive with China, to better protect the detained Australian citizen, Stern Hu.Mr Rudd has been under pressure at home to be more assertive with China, to better protect the detained Australian citizen, Stern Hu.
China says it has evidence of spying, bribery and theft of state secrets in a widening probe of the steel industry.China says it has evidence of spying, bribery and theft of state secrets in a widening probe of the steel industry.
"Australia of course has significant economic interests in its relationship with China, but I also want to remind our Chinese friends that China too has significant economic interests at stake in its relationship with Australia and with its other commercial partners around the world," Mr Rudd told a press conference."Australia of course has significant economic interests in its relationship with China, but I also want to remind our Chinese friends that China too has significant economic interests at stake in its relationship with Australia and with its other commercial partners around the world," Mr Rudd told a press conference.
"A range of foreign governments and corporations will be watching this case with interest and be watching it very closely, and will be drawing their own conclusions as to how it is conducted," he said. "A range of foreign governments and corporations will be watching this case with interest" he said.
Domestic pressureDomestic pressure
He told Australian media that his government had made a total of 20 representations to China since Mr Hu's arrest in Shanghai on 5 July, adding the government was deploying "all levels of consular and diplomatic representations in support of Mr. Hu's interests."He told Australian media that his government had made a total of 20 representations to China since Mr Hu's arrest in Shanghai on 5 July, adding the government was deploying "all levels of consular and diplomatic representations in support of Mr. Hu's interests."
It was a "massively complex" case to work through, he said.
"We pursue a broad-based relationship with the Chinese, one where we will pursue all of our interests simultaneously," he said.
"When it comes to prosecuting the interests and supporting the well-being of individual Australians abroad that will be done with full vigour ... without compromise to the interests of a single Australian," he said."When it comes to prosecuting the interests and supporting the well-being of individual Australians abroad that will be done with full vigour ... without compromise to the interests of a single Australian," he said.
Rio Tinto said it would cooperate fully with the investigationRio Tinto said it would cooperate fully with the investigation
Daily press commentaries and Australia's opposition have criticised Mr Rudd for failing to stand up for Australian interests.
They have used his known skills in Chinese language and diplomacy against him, saying it has made him subservient to Chinese power.
The Shanghai-based staff of the Anglo-American mining firm Rio Tinto, including Australian Stern Hu, Rio's top iron ore salesman there, are accused of stealing state secrets from Chinese steel mills.The Shanghai-based staff of the Anglo-American mining firm Rio Tinto, including Australian Stern Hu, Rio's top iron ore salesman there, are accused of stealing state secrets from Chinese steel mills.
China has widened its investigation into the industry's workings by investigating executives at Chinese state-owned steel firms in recent days.China has widened its investigation into the industry's workings by investigating executives at Chinese state-owned steel firms in recent days.
China is Australia's second biggest trade partner after Japan. Tough market
Reports suggest the spying case is complicating difficult talks between China and iron ore suppliers around the world. Later on Wednesday Rio Tinto reported second-quarter results, showing that markets remained tough as demand slowed.
The firm said it had continued to press ahead with steps to cut costs and bring down levels of net debt.
The mining giant recently completed a £15.2bn rights issue and the firm is to offload investments worth £3.7bn.
Production of bauxite, alumina and aluminium were all reduced, but on the upside iron ore production rose for the three month period by 8% from a year earlier.
Rio Tinto has not yet finalised price settlements for iron ore sales to certain customers, including steel mills in China. But deals with Japan, Korea and Taiwan have been reached.
"Deliveries continue to other customers on a provisional price or spot sales basis," Rio Tinto Chief Executive Tom Albanese.
Reports suggest the spying case is complicating talks between China and iron ore suppliers around the world.