The four were formally charged today on suspicion of obtaining commercial secrets, a far less serious allegation than stealing state secrets, which is punishable by death. The four remain in prison. Experts express their views.

Shanghai (AsiaNews/Agencies) – Mining firm Rio Tinto rejected Chinese accusations of espionage or stealing state secrets, noting that after more than a month neither evidence has been presented, nor charges formally laid in the matter.

Back in early July Chinese police arrested, Stern Hu, an Australian in charge of Rio’s iron ore negotiations with China, as well as three of the company’s employees, on charges of industrial espionage.

Rio's iron ore chief executive Sam Walsh expressed concern over the detainees’ health, and reiterated the company’s position that no evidence has been presented so far to back the accusations.

The issue has however become a diplomatic affair given the importance of the individuals involved and the seriousness of the charges.

Australia’s Department of Foreign Affairs and Trade repeated again today its demand to be allowed to provide Mr Hu with legal assistance.

Anglo-Australian giant Rio Tinto, the world’s third-largest mining company in the world, is very active in mainland China.

Experts noted that the accusations against the Rio staff were made during long negotiations between Rio Tinto and its Chinese customers over iron ore prices.

Rio Tinto had agreed to a 33 per cent price cut this year with Japanese, South Korean and Taiwanese buyers, but its Chinese clients want more because of the global economic crisis.

For this reason many observers speculate that the charges are part of a complex strategy to put pressure on the Australian company.

China is the world’s largest buyer of iron ore and Rio Tinto is the second-largest producer.

Recently an editorial in the magazine of China’s National Administration for the Protection of State Secrets accused Rio Tinto of conducting industrial espionage for the past six years. It claimed that the company stole intelligence data, bribing Chinese officials to pay 700 million yuan (US$ 102 billion) more for imported iron than they would have otherwise.

Experts have pointed out that no evidence has been presented so far to back such allegations. Others have noted that such figures are outlandish if we consider that since the beginning of 2004, China has imported almost 2 billion tonnes of iron ore at a total cost of US$ 58 billion according to customs data. If US$ 102 billion in damages are added, we reach US0 billion. This would mean that Rio's espionage pushed up the average price of iron ore by a whopping 60 per cent.

• china
• australia
• rio
• tinto
• espionage
• theft
• state
• secret
• iron
• ore
• steel
• production