Australian Businessman Accused of Spying by Chinese Govt

[Aliantha]

This is shaping up to be a diplomatic nightmare for Australia and could potentially end up involving other countries who trade with China. Basically an Australian mining exec was 'detained' by Chinese officials under suspicion of stealing Chinese trade secrets. There are rumours that it's all connected to a mine purchase by a Chinese company in Australia although these rumours are unfounded atm. The man has been detained now for 7 days without charge, and China has yet to utter a word to Australia - at any level - with regard to anything other than the accusation.

There are calls for the government to get involved, and over the last couple of days there are calls for the business community to begin imposing it's own 'sanctions' on trade with China. China is our main trade partner with regard to coal and iron ore. I personally don't see the mining companies getting on board with this. They'd stand to lose too much when they're already struggling.

From the Sydney Morning Herald:

KEVIN Rudd has flown back into Australia and the storm over China's treatment of a Rio Tinto employee.

His arrival comes as pressure mounts to intervene in the Stern Hu case, while the goovernment has warned China it could face a business backlash over the case.

But Foreign Affairs Minister Stephen Smith and Prime Minister Kevin Rudd are yet to speak to their Chinese counterparts about the plight of Rio Tinto employee Stern Hu.

Mr Smith said yesterday that Mr Hu could be "in for a long haul" after his arrest just over a week ago.

The man in charge of Rio Tinto's Chinese iron ore business, accused of bribery and undermining China's economic security, will have to wait another month to get further access to Australian consular officials.