🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

WRAPUP 2-Australia presses China on detained Rio exec

Published 07/11/2009, 01:53 AM
RIO
-
PBHP
-

* Australia trade minister expresses concerns to China

* Australia says has no information on investigation

* China-Australia trade ties unlikely affected - minister

* Detained Australian appears well during consular visit

By Ben Blanchard

SHANGHAI, July 11 (Reuters) - Australia's trade minister pressed China on Saturday for more details about the detention of a Rio Tinto executive, but said he did not expect the case to affect bilateral trade ties.

Stern Hu, an Australian national, and three Chinese employees of Rio Tinto's iron ore department were detained last week, on what China said was suspicion of stealing state secrets.

Simon Crean told reporters he had expressed "strong concern" to the Shanghai city government regarding Hu, and that Australia hoped the issue would be dealt with quickly.

"We've stressed the importance of getting further and better details," the minister said, speaking on the rooftop of a restaurant on Shanghai's historic Bund waterfront.

"We have no information as to what the investigation does involve. We're going on the basis of press reports. The government here is not able to inform us anymore," he added.

"We respect the Chinese legal system and the processes that need to be gone through, but we've indicated that this too is an important issue back home in Australia."

Australian consular officials visited Hu at the Shanghai detention centre where he is being held on Friday. Crean said Hu had appeared well.

"Obviously if charges are laid ... clearly we're also pressing for availability of legal representation as well," he added.

"We have a different set of rules back home for the treatment of individuals than is the case here. ... We have to respect their system and work within it."

TENSE TIMES

The detentions came just after Chinese steel mills, led by the China Iron and Steel Association, failed to reach an agreement on 2009 iron ore prices with Rio and rival miners BHP Billiton and Vale by a June 30 deadline.

At least one senior official at China's eighth largest steel mill, Shougang, has also been detained, media said.

China broadly defines what constitutes a state secret. In the last four years, the annual term iron ore price negotiations have become increasingly fraught, with the result seen as vital to China's national interest.

The case has stunned the global steel industry, which was already transfixed on the marathon iron ore talks. After more than six months of cat-and-mouse, China appeared to be boxed in, forced to accept Rio's price or to abandon long-term deals and risk destroying a decades-old pricing system.

The shock detentions appear to have left the price talks in limbo and cast a shadow on relations between Beijing and Canberra, whose economies have been welded together in recent years by China's huge demand for metals and minerals.

Crean downplayed the potential economic impact of the case. "I see no reason why our trade relationships will be damaged, if what we can get is an expedition of the process in accordance with Chinese law," he said.

"The commercial opportunities in China are very strong for Australian interest. The inter-dependency between our two economies is very strong," the minister added.

"We believe that both economies, Australia and China, need each other," he said. "But we should always do it within the law. The government will do it that way, and I've a strong message to every commercial interest that they too need to do it that way." (Additional reporting by Lucy Hornby in Beijing; Editing by Jeremy Laurence)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.