China claim is refuted by Rio Tinto
RIO Tinto yesterday hit out at the Chinese authorities over the detention of four employees accused of industrial espionage and bribery.
In a sign of growing anger at the detentions, the Anglo-Australian miner issued a strongly worded statement refuting China’s claims.
“Rio Tinto believes that the allegations in recent reports that employees were involved in bribery of officials at Chinese steel mills are wholly without foundation,” said Sam Walsh, chief executive of the miner’s iron ore operations.
He said the miner was “very concerned” about its staff.
The detentions have sparked a spat between China and Australia; one of the detained men, Stern Hu, is an Australian national. It has also unsettled the global iron ore trade. The detentions were made at the height of protracted iron ore price negotiations between Rio and China. Negotiations this year are believed to have been particularly fraught because Rio pulled out of a $19.5billion (£13billion) deal with Chinese state-owned aluminium giant Chinalco.
China’s behaviour has raised fears that other foreign companies will be deterred from doing business with China, including those in the US. It could also impact on China’s ability to buy foreign companies as it seeks to acquire much needed natural resources and expertise.