Plot thickens in Rio exec 'spying' case
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Four Rio Tinto workers have been detained in Shanghai for alleged involvement in espionage. (flickr.com: triplefivedrew)
A Chinese Steel company has denied that it has anything to do with the arrest of four Rio Tinto employees accused of spying in China.
Australian man Stern Hu, the head of Rio Tinto's China operations, has been detained in Shanghai along with three other Rio Tinto staff for alleged involvement in espionage.
Now a senior executive from China's Capital Steel, Tan Yixin, has reportedly been arrested in Beijing for "business crimes".
The 21st Century Business Herald has reported that Tan knows Stern Hu very well and that the two met in April this year at Capital Steel's headquarters to discuss iron ore prices.
But Capital Steel has denied that it is involved in any way in the accusations against Mr Hu.
The company says it knows nothing of the details of his detention and that no speculation should be made on the link between the two separate arrests.
According to the 21st Century Business Herald, the three other Rio Tinto staff being held are: Liu Caikui, a manager who recently joined Rio; Wang Yong, a long time employee of Rio in China; and Ge Minqiang.
The newspaper report says other people have either been detained or are being investigated in relation to the matter.
The Australian Government says it cannot be certain Mr Hu has been treated appropriately since he was detained on Sunday on suspicion of espionage and stealing state secrets.
The Chinese Government has not yet allowed Australian consular officials to meet Mr Hu, who has been living in Shanghai for the last 10 years with his wife.
Foreign Minister Stephen Smith says the Government is urging China to allow Australian officials to see Mr Hu as soon as possible.
"That's one of the reasons why we want access to him, is to satisfy ourselves as to his welfare, to satisfy ourselves as to his wellbeing and to get some indication from him as to how we can be of assistance," Mr Smith said.
Both the Federal Government and Rio Tinto say the accusations come as a complete surprise.
Mr Smith says the Government is doing what it can to try to get access to Mr Hu.
"I'm satisfied, very satisfied, that our response to date has been a sensible and proportionate response," he said.
"We will continue to make all the points we've been making privately and now publicly to Chinese officials."
Nationals Senate leader Barnaby Joyce says he is convinced Mr Hu's detention is linked to Rio Tinto's decision to abandon a takeover offer from the Chinese state-owned mining firm Chinalco.
But Federal Treasurer Wayne Swan says there is no evidence the incident has anything to do with the failed Chinalco deal.
"I don't think it would be the responsible course of action to be speculating about what has occurred in this case," he said.
"I think some of the comments that have been made by others about the possible ramifications of this, or flow through of this from other matters in the commercial sphere, simply cannot be supported by any back-up material."
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