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| 'China's detention of Rio's Hu may hurt confidence' |
| Bloomberg / Canberra Jul 13, 2009, 00:02 IST |
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China’s detention of four Rio Tinto Group employees risks harming foreign confidence in the world’s fastest-growing economy and the case needs to be dealt with expeditiously, Australian Foreign Minister Stephen Smith said.
“China needs to think very carefully about what implications, if any, this has on the international business community and international investment community’s view of China,” Smith told reporters at a press briefing in Perth on Sunday. “I am sure there is not one Australian company that hasn’t noticed these circumstances in the past week.”
China detained Australian national Stern Hu on July 5, along with three other Rio employees, alleging he stole state secrets. The case has hurt relations that were strained last month when Rio abandoned a $19.5 billion investment by Aluminum Corp of China, four months after agreeing to what would have been the Asian country’s biggest overseas investment.
Smith said he has had to rely on Chinese Web sites for information on Hu and that Australian officials would tomorrow press their counterparts in Canberra and Beijing for more details on the case. Australia last week said its foreign ministry learned about the allegations against Hu from media reports before being contacted by China’s government.
“I would have much preferred these matters were relayed to us diplomatically,” Smith said of information obtained in the past week. “Our officials will continue to make the point we need to have more detailed information about the circumstances of Hu’s case and this matter needs to be dealt with expeditiously.”
Chinese authorities “established the evidence before they took action against anyone,” China’s foreign ministry spokesman Qin Gang said July 9 at a regular news briefing in Beijing. Hu “is suspected of stealing Chinese state secrets for foreign countries and was detained on criminal charges,” Qin said.
Australian officials met with Hu two days ago for the first time since his arrest. Trade Minister Simon Crean met with Shanghai Government Deputy Secretary General Sha Hailin yesterday about the detention, expressing “concern” about Hu’s welfare and asking for a quick response.
“This is a concerning case,” Financial Services Minister Chris Bowen told Network Ten’s Meet the Press program on Sunday. “We are dealing with it very seriously, we’re making the appropriate representations very strongly.”
Rio Tinto officials today declined to comment.
Hu and his three colleagues were arrested after state security executed search warrants on parts of Rio’s Shanghai headquarters, Smith said.
China’s actions had focused the attention of foreign businesses operating in the world’s fastest growing economy, Bowen said
“The Chinese government would be very aware it is not good for business certainty,” Bowen said. “It is a concern for Australian and other foreign business people working in China that this could happen.”
China is Australia’s second-largest export market, largest foreign investor and biggest provider of foreign students.
“The relationship with China is an important one,” Bowen said. “It should be a concern for the Chinese government if foreign businesses feel their degree of uncertainty is high.”
Australia Employment Participation Minister Mark Arbib said the nation’s trade relationship with China would not compromise its assistance to the detained Hu Arbib, Smith and Bowen said further and higher government action would be taken if deemed necessary, without saying what form that would take.
“We will take one step at a time and if further action is required, that’s what we will take,” Arbib told Nine Network television on Sunday. “It shouldn’t matter what our relationship is in terms of trade and jobs, all Australians should be getting appropriate action from the government.”
Rio Tinto Iron Ore Chief Executive Sam Walsh on Saturday welcomed news of the consular visit to Hu, adding in a statement: “We are very glad to hear he is in good health.” Rio remained “surprised and concerned” over the detention and Chinese authorities had not yet detailed charges, Walsh said.
Prime Minister Kevin Rudd, who interrupted a meeting with world leaders including US President Barack Obama in Italy to discuss Hu on two radio interviews on July 10, said Australia would work “methodically” through the issue with China.
Smith said the consular visits would now occur monthly and that Hu may face a “long haul” before the case is resolved. The details of the case were not discussed with Hu during the July 10 meeting, Smith said.
Australian opposition foreign affairs spokeswoman Julie Bishop criticised the government for not having direct negotiations with their Chinese counterparts. Bishop said Hu should be released if he has not been charged.
Bishop said China had been offended by Australia’s latest defense strategy, which highlights China’s growing military power, and by Rudd outlining the human rights issues of Tibetans.
“Beijing has been snubbing Canberra,” Bishop told the Australian Broadcasting Corp television.”
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