| Four Rio Tinto employees arrested in Shanghai China | |
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| Aug 12, 2009 02:29 |   |
 | Four Rio Tinto’s executives have been arrested by the Shanghai procuratorate authorities after about six-week detention by the Shanghai State Security Bureau. The four officers including Australian executive Stern Hu (who hold Australina passport) and three other employees were charged with infringing business secrets and bribery. Stern Hu was the chief executive of Rio Tinto’s sales team in Shanghai. After the arrest of Stern Hu, Rio Tinto has moved its employees out of its Shanghai office. Stern Hu  |
Last edited by JIMMYB: Aug 12, 2009 02:30 | |
| Aug 12, 2009 22:03 | #1 |
| Can you blame RIO for removing their staff? Many other multinationals are considering doing the same thing depending on the result of this trial. The charges have now been dowgraged to accepting bribes and stealing commercial secrets from the original threat of laying espionage charges. The so called "evidence" when, and if produced will be very interesting. |
| Aug 13, 2009 04:58 | #2 |
| Jimmy, courts of law in the west are open to the public to attend, provided they can get a seat, so that justice can be seen to be done. I know this is a cheeky question but are the law courts in China open to the public? Dodger. |
| Aug 13, 2009 06:48 | #3 |
| That's a good question Dodger. Stern Hue was arrested and imprisoned almost 6 weeks ago but charges were only laid yesterday. He has not been allowed contact from his family or employer, but has had two consular visits. He has not been allowed legal advice or representation so far. No evidence has yet been produced. Interestingly, he has been charged with ACCEPTING bribes, not offering them. Considering he worked for a foreign company I can't really understand how accepting bribes would adversely affect China. Perhaps, if guilty, he is just the meat in the sandwhich. RIO TINTO maintains he is innocent and you would think they would be the ones interested if their employee was talking bribes. The plot thickens. |
| Aug 13, 2009 19:22 | #4 |
| The conviction is downgraded. China seems to have comprmised in terms of purchasing from Rio Tinto. |
| Aug 13, 2009 23:18 | #5 |
| You are wrong Marrie. There is no conviction. The CHARGES have been downgraded. Although in China the two seem identical. No evidence, if any exists, has yet been produced. There is no compromise either. There is a backdown. The iron ore price negotions continue without RIO TINTO succumbing to the pressure exerted. The charges were downgraded because the cost to China would have proved too great in the vain hope of "killing a chicken to scare the monkey". The reason is simple. Today Chinas partly government owned "Yanzhou Coal Mining Company Limited" has bid A$3.7 BILLION to takeover another Australian owned company, Felix Resorces. China Inc. knows that this bid, and any future takeover bids, would have little chance of sucess if the charges wern't downgraded. It would appear that wiser heads have finally prevailed. China continues to refuse to buy at the benchmark contract price and purchases iron ore from RIO at record spot market prices approaching $US100 per tonne. The benchmark contract price for Australia iron ore is $US40 and for Brazillian iron ore is $US60. If you dont believe me then read this; http://business.smh.com.au/ Untill a realistic compromise new contract iron ore price is reached, China continues to shoot itself in the foot. China needs Australias resources. Australia needs Chinas money. Prior to this ridiculous episode it has been a mutually beneficial trading relationship and the two nations were good friends. Lets hope that now it can be again. |
| Aug 13, 2009 23:31 | #6 |
| To remove any confusion; The benchmark contract price for Australian iron ore is $US75 per tonne including US$15 shipping costs. For Brazillian iron ore it's $US100 per tonne including $US40 shipping costs. The spot market price, EXCLUDING shipping costs of $US15 for Australia and $US40 for Brazil, is $US100 per tonne. China is now paying $US40 more, almost double, on the spot market than the benchmark contract price. |
| Aug 14, 2009 01:05 | #7 |
| It's not just RIO TINTO who is concerned. http://business.timesonline.co.uk/ |
| Aug 19, 2009 22:55 | #8 |
| Jimmy; I am curious why did started this thread if you never post a comment. |
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