Wednesday July 15, 06:13 AM
Australia PM warns China on Rio Tinto 'spy'
By Amy Coopes
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SYDNEY (AFP) - Australian Prime Minister Kevin Rudd has warned China that it had economic interests at stake in the case of a detained mining executive, taking a tough new approach in the escalating diplomatic row.
Rudd said Australia's key trading partner had "significant" business interests on the line and cautioned that foreign governments and international companies were watching developments closely.
"Australia of course has significant economic interests in its relationship with China, but I also want to 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," Rudd said.
"A range of foreign governments and corporations will be watching this case with interest and be watching it very closely, and will be drawing their own conclusions as to how it is conducted."
Despite the warning China has insisted that trade relations with Australia would not be harmed by the Rio Tinto (LSE: RIO.L - news) case.
Rudd's strong statement comes 10 days after Rio Tinto executive Stern Hu, who has been leading troubled iron ore negotiations, and three Chinese colleagues were arrested by counter-espionage agents in Shanghai.
China has not outlined the allegations against Hu but says it can prove he was involved in bribery during the iron ore talks, equating the offences with spying and stealing state secrets.
Chinese state media has since stated that the mining giant had bribed officials from all 16 of China's major steel mills.
The incident has cast a shadow over one of Australia's most important trade relationships -- worth 58 billion US dollars last year -- and created a headache for the Mandarin-speaking Rudd, who has pledged to boost ties with China.
The former diplomat vowed to continue pressing for more information on Hu's arrest but said economic interests would not stop Australia speaking out on human rights or "broader questions of China's engagement with the institutions of the world."
"We pursue a broad-based relationship with the Chinese, one where we will pursue all of our interests simultaneously," he said.
"When it comes to prosecuting the interests and supporting the wellbeing of individual Australians abroad that will be done with full vigour ... without compromise to the interests of a single Australian."
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