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Rio Tinto trial opens in Shanghai Rio Tinto chief 'admits bribery'
(about 1 hour 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. An Australian executive of mining giant Rio Tinto has told a court in the Chinese city of Shanghai that he took bribes, an official says.
Australian Stern Hu and his three Chinese colleagues have been held in detention since July 2009. Four Rio Tinto employees - Australian Stern Hu and three Chinese colleagues - are facing bribery and commercial espionage charges.
The Australian government has expressed concern that its consular officials will be prevented from witnessing some of the court proceedings. An Australian diplomat who attended the court session said Mr Hu had "made some admissions" on the bribery matters.
The trial is set to last three days. Foreign reporters are not allowed in. The trial of the group, arrested in July, is due to last three days.
Correspondents say the case will be scrutinised by companies around the world for the light it might shed on the problems faced by foreigners working in China. Reports from China indicate at least one of Mr Hu's colleagues also admitted taking bribes.
Foreign reporters are not allowed to attend the trial.
The Australian government has expressed concern that its consular officials will be prevented from witnessing Tuesday's court session, at which the commercial espionage charges will be discussed.
Anger over dealAnger over deal
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.
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
He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - have been held in detention since they were taken from their homes on 5 July last year.He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - 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.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. Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts".
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.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."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."
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.
'Watching closely''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," 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 daysRIO 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 Prime Minister Kevin Rudd told reporters on Monday that his government would be "monitoring the trial very carefully".
"The Australian government will be monitoring the trial very carefully," Australian Prime Minister Kevin Rudd told reporters on Monday.
"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.
Last week Chinese officials warned Australia against "politicising" the case.Last week Chinese officials warned Australia against "politicising" the case.
China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy.China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy.
The BBC's China correspondent, Damian Grammaticas, says other foreign firms are watching the Rio trial closely.The BBC's China correspondent, Damian Grammaticas, says other foreign firms are watching the Rio trial closely.
The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive.The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive.
US firms 'feel unwanted' in ChinaUS firms 'feel unwanted' in China
China's laws on the subject are opaque. And courts are often seen as lacking in independence.China's laws on the subject are opaque. And courts are often seen as lacking in independence.
The trial also comes as a growing number of foreign businesses say they are facing problems operating in China.The trial also comes as a growing number of foreign businesses say they are facing problems operating in China.
The internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers.The internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers.
A survey of American businesses released just as the Rio Tinto trial started showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says.A survey of American businesses released just as the Rio Tinto trial started showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says.