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INTERNATIONAL BUSINESS NEWS
February 11, 2010 04:25:10 PM

Australia urged China Thursday to hold a quick and open trial for Rio Tinto mining executive Stern Hu, who was formally charged with industrial espionage seven months after his arrest.

Officials were expecting confirmation after China's state Xinhua news agency said the Australian passport-holder and three Chinese colleagues would face trial in Shanghai accused of bribery and stealing trade secrets.

"As with all legal processes, it is not appropriate to speculate on the outcome or penalties at this time," a foreign ministry spokesman said.

"We continue to emphasise to the Chinese authorities the need for the case to be handled transparently and expeditiously."

The four, detained last July during fractious iron ore contract talks, are accused of using their "positions to obtain benefits for others and on many occasions solicited or accepted bribes," Xinhua said Wednesday.

The report said the employees of the Anglo-Australian mining giant had also "on many occasions obtained the trade secrets of Chinese steel companies, leading to serious consequences for the relevant steel companies".

Rio Tinto has said it is not aware of any wrongdoing by its employees. The company did not immediately comment on the latest development.

The case briefly snarled diplomatic ties between Beijing and Canberra, which have become major trading partners as China seeks commodities and energy to feed its rapid industrialisation.

The four were arrested just weeks after Rio walked away from a massive cash injection from state-run Chinalco, which would have given China an important presence in Australia's vast resources sector.

A lawyer for one of the accused confirmed the charges to AFP and said the trial was likely to be held in February or March. Wang Yong, Ge Minqiang, and Liu Caikui are the three Chinese nationals involved.

According to the website of China's Supreme People's Court, charges of bribery and abuse of one's position bring a sentence of at least five years in prison for large cases, or up to five years for lesser violations.

The trade secrets charges risk sentences of at least three years in jail for cases resulting in "especially" large losses, or lesser charges for smaller cases, it said.

Australian Financial Services Minister Chris Bowen said Hu had legal representation and was receiving consular assistance.

"Of course, we would hope that this matter gets resolved as quickly as possible, as we have said all the way through," he told public broadcaster ABC.

A Chinese foreign ministry spokeswoman last month defended China's handling of the case, saying it had been dealt with "according to relevant Chinese laws, legal processes and China-Australia consular agreements".

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