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Rio Tinto trial opens in Shanghai Rio Tinto trial opens in Shanghai
(about 4 hours later)
Four employees of international mining group Rio Tinto have gone on trial in the Chinese city of Shanghai, charged with bribery and commercial espionage.Four employees of international mining group Rio Tinto have gone on trial in the Chinese city of Shanghai, charged with bribery and commercial espionage.
Australian Stern Hu and his three Chinese colleagues have been held in detention since July 2009.Australian Stern Hu and his three Chinese colleagues have been held in detention since July 2009.
The Australian government has expressed its concern that its consular officials will be prevented from witnessing some of the court proceedings. The Australian government has expressed concern that its consular officials will be prevented from witnessing some of the court proceedings.
The case has highlighted fears among foreign businesses in China.The case has highlighted fears among foreign businesses in China.
The trial is scheduled to last three days. Foreign reporters were not allowed to attend.
'Great concern'
Stern Hu was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies.Stern Hu was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies.
Foreign concerns
He and three of his Chinese colleagues on the iron ore sales team have been held in detention unable to see their families since they were taken from their homes on 5 July last year.
Although Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in fullAlthough Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in full
They are charged with commercial espionage, punishable by up to seven years in prison and taking bribes, a charge that also carries a lengthy jail term. He and three of his Chinese colleagues have been held in detention since they were taken from their homes on 5 July last year.
They are charged with commercial espionage, punishable by up to seven years in prison, and taking bribes, a charge that also carries a lengthy jail term.
A month before the arrests, Rio scrapped a $19.5bn (£12.5bn) deal with China's state-owned Chinalco in favour of a tie-up with rival giant BHP Billiton, which angered some in Beijing.
But ties have since improved - last week Rio Tinto signed a deal with Chinalco to develop a massive iron ore mine in Guinea.
Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China.
The case was "obviously of great concern to us", he told a forum in Beijing, according to an e-mailed copy of his speech. "I can only say we respectfully await the outcome of the Chinese legal process."
'Watching closely'
The Australian Department of Foreign Affairs and Trade has said it is disappointed with the Chinese court's decision not to allow its consular officials to attend sessions which might include commercial secrets.The Australian Department of Foreign Affairs and Trade has said it is disappointed with the Chinese court's decision not to allow its consular officials to attend sessions which might include commercial secrets.
"The Government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra. The Australian Government does not propose to make further representations on this matter," it said in a statement issued over the weekend. "The government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra," it said in a statement issued over the weekend.
It said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial.It said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial.
RIO TINTO TRIAL Four executives including one Australian on trialGroup face charges of bribery and illegally obtaining commercial secretsParts of the trial will be held behind closed doors, despite Australian objectionsTrial is scheduled to last three days
Australian consular officials will attend hearings involving the bribery charges, and the consul-general for Shanghai, Tom Connor, was seen entering the court.Australian consular officials will attend hearings involving the bribery charges, and the consul-general for Shanghai, Tom Connor, was seen entering the court.
"The Australian government will be monitoring the trial very carefully," Australian Prime Minister Kevin Rudd told reporters on Monday."The Australian government will be monitoring the trial very carefully," Australian Prime Minister Kevin Rudd told reporters on Monday.
China's difference
Rio Tinto supplies vast quantities of iron ore to China
"China has a different legal system to Australia, China has a different legal system to the rest of the world.""China has a different legal system to Australia, China has a different legal system to the rest of the world."
"The world will be watching very closely," he added, repeating comments he made last week."The world will be watching very closely," he added, repeating comments he made last week.
A Chinese researcher in a think-tank run by the nation's Ministry of Commerce said there was a strong case against the Rio employees and warned Australia to keep a distance. Last week Chinese officials warned Australia against "politicising" the case.
"The Australian government and public need to calmly and rationally consider this question: should the government waste such a large amount of political and financial resources to pay the bill for certain companies' immature and even illegal ways?" the researcher, Mei Xinyu, wrote in the Chinese-language Shanghai Securities News.
"What Rio Tinto and Stern Hu did would be utterly taboo in any host country," the writer alleged.
The BBC's Shanghai correspondent Chris Hogg notes that China relies heavily on mining giants like Rio Tinto, to feed its huge appetite for raw materials to power its economy.The BBC's Shanghai correspondent Chris Hogg notes that China relies heavily on mining giants like Rio Tinto, to feed its huge appetite for raw materials to power its economy.
He says the case is being watched closely by companies around the world for clues as to what dangers their own employees might face when they are working in China. This case has put that important economic relationship under strain.
Our correspondent says it is being watched closely by companies around the world for clues as to what dangers their own employees might face when they are working in China.