Australian PM warns China in Rio Tinto case

ADELAIDE, Australia - Prime Minister Kevin Rudd on Wednesday warned China that the world is watching how it deals with an investigation into four detained employees of Anglo-Australian mining giant Rio Tinto Ltd.

Rudd urged China to consider its economic ties with other countries as it dealt with the men, who have been held since July 5 on espionage charges. Three are Chinese nationals and one is an Australian citizen.

"Australia of course has significant economic interest in its relationship with China," Rudd told reporters in Sydney. "Let me also remind our Chinese friends that China, too, has significant economic interests at stake in its relationship with Australia and with its other commercial partners around the world."

China is Australia's biggest trading partner.

Rudd said it was in the best interests of all countries to resolve the matter.

"A range of foreign governments and corporations will be watching this case with interest," Rudd said. "They'll be drawing their own conclusions as to how it is conducted."

Australian Stern Hu, an executive for Rio Tinto Ltd., and the others were detained July 5 amid contentious iron ore price talks with Chinese steel mills. State media say they are accused of bribing Chinese steel company employees to obtain confidential information on China's negotiating position in the talks.

Rudd confirmed that the Australian government had not received a direct briefing from the Chinese on why Hu had been detained.

The detentions have complicated the price talks between China and iron ore suppliers and raised concerns of a disruption in the industry, as China is quickly becoming the main global consumer of iron ore.

Rudd said he is following the case personally and that talks were taking place at the consular level. The prime minister said Tuesday that he would press officials in the highest levels of China's government, if necessary, for information about Hu's detention.

In the interim, Australia would continue to pursue a broad-based relationship with China, Rudd said.

"It's one where we'll pursue all of our interests simultaneously and that doesn't preclude making representations or international statements about problems of human rights in China," said Rudd, a former diplomat to Beijing.

Opposition politicians have criticized the government's handling of the case and demanded that Rudd directly contact the Chinese president.

"Mr. Rudd is claiming to be the great Chinese expert and he is very efficient at speaking Chinese (but is) not able to put those skills to use for an Australian who is in a very tight spot," opposition leader Malcom Turnbull told reporters in Brisbane.

"By doing nothing and treating it as a low-level consulate case he is sending a message that he is not deeply concerned an Australian citizen has been detained for 10 days without access to lawyers, his family or his company."

Australian diplomats met with Hu last week and said he is in good health but are not allowed access to him again for a month under a pre-existing consular agreement with China.

Commerce Ministry spokesman Yao Jian said Wednesday the spying charges wouldn't affect investment in China.

"The confidence of foreign investment in China's legal environment has strengthened during China's 30 years of opening up. This single case won't affect China's trade and capacity of attracting foreign investment at all," Yao said at a news conference on China's latest foreign direct investment figures.

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