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China charges Rio Tinto workers | China charges Rio Tinto workers |
(about 2 hours later) | |
China has formally arrested and charged four employees of mining firm Rio Tinto with stealing trade secrets and taking bribes, Chinese state media reports. | China has formally arrested and charged four employees of mining firm Rio Tinto with stealing trade secrets and taking bribes, Chinese state media reports. |
The accused are Australian national Stern Hu and three Chinese employees of the Anglo-Australian company. | The accused are Australian national Stern Hu and three Chinese employees of the Anglo-Australian company. |
The four have been in police custody in Shanghai since early July. Rio Tinto denies any wrongdoing. | The four have been in police custody in Shanghai since early July. Rio Tinto denies any wrongdoing. |
Australia has urged China to allow Mr Hu - Rio's head of iron ore operations in China - to have access to a lawyer. | Australia has urged China to allow Mr Hu - Rio's head of iron ore operations in China - to have access to a lawyer. |
"We encourage China to allow Mr Hu all the protections available under Chinese law, including access to legal representation, now that he has been formally arrested," a statement from the foreign affairs department said. | "We encourage China to allow Mr Hu all the protections available under Chinese law, including access to legal representation, now that he has been formally arrested," a statement from the foreign affairs department said. |
The four employees - Mr Hu and his Chinese colleagues Liu Caikui, Ge Minqiang and Wang Yong - have been charged with using "improper means" to obtain "commercial secrets" about China's steel and iron industry, said Chinese official news agency Xinhua. | |
However, there was no mention of charges of stealing state secrets, which earlier reports in China had said the four would be accused of, and which carry tougher sentences. | However, there was no mention of charges of stealing state secrets, which earlier reports in China had said the four would be accused of, and which carry tougher sentences. |
Retaliation theory | Retaliation theory |
Last month, the Australian trade minister, Simon Crean, warned that business relations with China could be damaged if the case of the detained Rio Tinto workers was not handled appropriately. | Last month, the Australian trade minister, Simon Crean, warned that business relations with China could be damaged if the case of the detained Rio Tinto workers was not handled appropriately. |
Australian opposition politicians had complained that the arrests might be in retaliation for the collapse in June of Rio's proposed deal with Chinese state-owned firm Chinalco. | Australian opposition politicians had complained that the arrests might be in retaliation for the collapse in June of Rio's proposed deal with Chinese state-owned firm Chinalco. |
Rio scrapped a $19.5bn (£11.8bn) investment by Chinalco in favour of a tie-up with fellow Anglo-Australian miner BHP Billiton. Rio Tinto is now finalising a deal with BHP to merge their iron ore operations in Western Australia. | Rio scrapped a $19.5bn (£11.8bn) investment by Chinalco in favour of a tie-up with fellow Anglo-Australian miner BHP Billiton. Rio Tinto is now finalising a deal with BHP to merge their iron ore operations in Western Australia. |
However, Mr Crean did not believe that the two incidents were related. | |
China is Australia's biggest trade partner, worth $53bn in 2008. Of this, $14bn came from iron ore exports, powered by Rio Tinto and BHP Billiton. | China is Australia's biggest trade partner, worth $53bn in 2008. Of this, $14bn came from iron ore exports, powered by Rio Tinto and BHP Billiton. |