China has no evidence of espionage, Rio Tinto says
Shanghai (AsiaNews/Agencies) – Mining company Rio Tinto has rejected accusations of spying and stealing state secrets made by China, noting that no evidence has been brought forth nor has any formal charge been laid.
In July Stern Hu, a Rio Tinto executive from Australia in charge of Chinese operations, and three of his colleagues were arrested for industrial espionage.
Today Rio Tinto's iron ore division Chief Sam Walsh in a statement said that no evidence has been presented against the four. He did however express concern for their health.
The matter has led to a flurry of diplomatic activities given the importance of the individuals involved and the gravity of the accusations.
Rio Tinto is an Anglo-Australian mining company and the world’s third- largest mining company with extensive interests in China.
Australian Foreign Minister Stephen Smith made a fresh appeal for China to grant legal representation to Mr Hu.
Experts note that the issue came to the fore during long negotiations between Rio Tinto and Chinese buyers of iron ore.
Rio agreed to a 33 per cent discount for contract prices this year with Japanese, South Korean and Taiwanese mills and had proposed the same to China, which instead wanted more because of the global economic crisis.
For many observers Chinese accusations are but a ploy to put pressure on the Australian company. China is the world’s largest importer of iron ore and Rio Tinto is the second-largest exporter.
Recently an editorial in the magazine of China’s National Administration for the Protection of State Secrets accused Rio Tinto of practicing industrial espionage for the past six years. It claimed that the company stole intelligence data, and used bribes to get Chinese officials to pay in excess of 700 million yuan (US$ 102 billion) more for imported iron than it would have otherwise.
Experts have pointed out that no evidence has been presented so far to back such allegations. Others have noted that the figures presented by the Chinese are outlandish.
Since the beginning of 2004, China has imported almost 2 billion tonnes of iron ore at a total cost US$ 58 billion according to customs data. If damages (US$ 102 billion) are added we reach US8 billion. This would mean that Rio's espionage pushed up the average price of iron ore by a massive 60 per cent.
So far Chinese authorities have failed to lay any charges in the matter.
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