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Kuros
Joined: 27 Apr 2004
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 Posted: Sat Jul 18, 2009 1:27 am Post subject: CCP detains lead negotiator in failed merger |
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Australian gov't under pressure to intervene in 'political' arrest
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THE Rudd Government is under further pressure to intervene in the detention of Australian iron ore executive Stern Hu following reports Chinese President Hu Jintao personally endorsed an investigation into Rio Tinto that led to his arrest.
Chinese government sources have reportedly told Fairfax media that President Hu Jintao personally endorsed the Ministry of State Security investigation into Rio Tinto.
The sources said the inquiry began before Rio Tinto broke off its $US19.5 billion ($A24.89 billion) investment deal with Chinalco and joined iron ore production forces with BHP Billiton on June 5.
Australian officials in Canberra and Beijing are today seeking more details from Chinese authorities about the circumstances of his arrest eight days ago. He is accused of bribery and undermining China's economic security. |
Wow. China went too far this time. |
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Gopher
Joined: 04 Jun 2005
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| Posted: Sat Jul 18, 2009 5:21 am Post subject: |
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| Sounds like a Hollywood film I saw about a decade ago... |
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Summer Wine
Joined: 20 Mar 2005
Location: Next to a River
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| Posted: Sun Jul 19, 2009 12:02 am Post subject: |
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I have found it interesting watching the different comments by australians on the news.
Though Al Jazerah (?) said that China basically told Australia not to make a stink about it as it is thier internal issue. If that is true then thats a shock.
I would guess that China is feeling its economic strenght and doesn't mind upsetting a few other people. Though in 1994, they arrested, charged and sentenced an chinese australian to 14 yrs in prison before notifying the Australian embasssy.
Their logic was that all chinese in the world are under Chinese rule. It hasn't changed much it seems.
It does raise a lot of questions and caused some embarrashment to one commenter when asked why is the US Govt taking this up at the highest level and Australia is dealing with second level officials.
Especially as the current prime minister seemed to boast about his understanding of China being a benefit and yet it doen't seem to have any effect. |
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Summer Wine
Joined: 20 Mar 2005
Location: Next to a River
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| Posted: Sun Jul 19, 2009 11:45 am Post subject: |
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China's arrest of Rio Tinto Group's Stern Hu is related to a criminal probe into iron-ore price talks, not espionage, and the case may result in a decision to charge the mining executive, Australia's Foreign Minister said last night.
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The investigation into Hu and three other Rio executives detained on July 5 has strained relations between China and Australian Prime Minister Kevin Rudd, a Mandarin-speaking former diplomat to Beijing. China said last that Australia was an "interference" with the nation's legal sovereignty.
"It's quite clear they are focusing on a criminal or judicial investigation relating to the 2009 iron-ore negotiations," Smith said.
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http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10585462
Well this answers a few more questions and also opens up a new bundle of them for other businesses dealing with China.
Is this simply a punishment or a shot across the bows for companies dealing with China? |
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Kuros
Joined: 27 Apr 2004
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| Posted: Sun Jul 19, 2009 10:42 pm Post subject: |
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| Summer Wine wrote: |
Though Al Jazerah (?) said that China basically told Australia not to make a stink about it as it is thier internal issue. If that is true then thats a shock.
I would guess that China is feeling its economic strenght and doesn't mind upsetting a few other people. Though in 1994, they arrested, charged and sentenced an chinese australian to 14 yrs in prison before notifying the Australian embasssy.
Their logic was that all chinese in the world are under Chinese rule. It hasn't changed much it seems. |
Yeah, the Chinese line has often been that China respects others' internal issues, and demands respect for its in return. What else are you going to say when you're a leading human rights violator and an enabler of client states that also regularly violate human rights?
I think you're right, the CCP are feeling the heady power that comes from being the only government flush with cash in an economic downturn, and were disappointed that a major investment in a Western country was foiled.
The Economist weighs in
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In late May, Japanese and South Korean steelmakers agreed price cuts with the three mining companies that dominate the trade in iron ore�Rio, BHP Billiton and Vale. Chinese negotiators continued to push for more but Rio remained firm, as have the other producers. Typically, mining companies like to work under annual contracts, since it enables them to assemble the massive supply chain needed to move vast amounts of ore from remote locations around the world.
This year, the failure to reach agreement has not been without benefits for the miners. Spot prices, which guide the annual benchmark, have risen steadily. And Chinese steel mills have been forced to make purchases on the spot market. Here prices are currently not only significantly above what they had hoped to pay, but approximately 7% more than what the Japanese and South Korean mills have agreed to under their annual contracts. This has put the Chinese producers at a disadvantage at a time when they felt their heft should give them a preferred rate in the annual negotiations.
That, say many in the industry, has resulted in the disastrous Chinese negotiating strategy�playing tough while prices were rising. There is widespread speculation that this has been enough to prompt embarrassed officials to attack Rio by alleging that Rio�s employees engaged in the theft of �state secrets�, presumably meaning the production targets of state-run Chinese steel mills. In a further twist, as part of the investigation into Rio, Chinese authorities are said to have seized information which may provide insight into the mining firm�s production costs and capacity. |
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On the other hand
Joined: 19 Apr 2003
Location: I walk along the avenue
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| Posted: Mon Jul 20, 2009 8:03 am Post subject: |
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Yeah, the Chinese line has often been that China respects others' internal issues, and demands respect for its in return. What else are you going to say when you're a leading human rights violator and an enabler of client states that also regularly violate human rights?
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Plus, China is not beyond pulling a few strings here and there to get the Dalai Lama barred from so much as entering a given country.
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The South African Government has admitted it barred the Dalai Lama from attending a peace conference in the country to avoid undermining relations with China.
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The same thing happened in South Korea a couple of years back. And I'd imagine things are even worse in countries(many in Africa) that are the major targets of Chinese aid/investment.
link |
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Summer Wine
Joined: 20 Mar 2005
Location: Next to a River
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| Posted: Sat Jul 25, 2009 5:13 am Post subject: |
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The same thing happened in South Korea a couple of years back. And I'd imagine things are even worse in countries(many in Africa) that are the major targets of Chinese aid/investment.
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Call it what you will, investment, colonialism, neo-colonialism, invasion. People never seem to accept other nations telling them what to do or taking their land. |
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