Arrests for industrial espionage: trade relations between China and Australia at stake
Beijing (AsiaNews / Agencies) - Investigation into industrial espionage that led to the arrest of 4 employees of the Australian company Rio Tinto are intensifying: Chinese media now report that 5 directors of the Chinese steel mills are also being accused. Meanwhile, Australian authorities are insisting on more information from Beijing.
Among the news suspects is the manager of Baosteel Group, China's largest producer of steel, as well as the executive managers of Anshan Iron and Steel Group, Laigang Group and Jigang Group, as well as one executive from Shougang Group has been held in detention since last week. The exact charges they are held on are still unknown.
Meanwhile, yesterday Australia demanded more information from the Chinese ambassador regarding the arrest in Shanghai of Australian Stern Hu, executive director of the Rio Tinto Group, and three Chinese employees, all detained since July 5. So far Chinese authorities have only confirmed the arrest on charges of "theft of state secrets," without providing further explanation.
The steel and energy sectors are considered to be of primary importance to Beijing and relative information is often regarded as a state secret. Rio Tinto, the third largest global mining company with headquarters in London and executive offices in Melbourne, was negotiating a price for the supply of iron ore to China. The deal is difficult because China, the largest steel producer in the world, is calling for a sharp drop in prices following the global economic crisis, while Rio Tinto would only allow a reduction of up to one third, as already accepted by companies in Japan and South Korea . It seems that employees of the company are accused of having paid officials of the Chinese steel companies to get information. The charge is grave because espionage is punishable with life imprisonment.
The episode risks undermining friendly relations between Australia and China, which is its main trading partner. Ross Garnaut, a former Australian ambassador to China, noted that "for future trade relations between China and the rest of the world is important that the matter be dealt with quickly and in a manner which respects the principles of law”.
Among analysts there are fears as to whether the arrests are a method of gaining better conditions, after Rio threatened not to reduce its selling price to the price wanted by Beijing.
Industry experts point out that the major Chinese firms in strategic sectors (such as energy, petroleum, minerals) are always controlled by the Chinese secret services. At the same time it is not uncommon for large companies to resort to similar devices in negotiations for important contracts.
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