In a development likely to have far reaching consequences,China Wednesday indicted four employees of the Anglo-Australian mining company Rio Tinto on bribery charges and for violating commercial secrets. Out of the four against whom charges were formally laid, Stern Hu, Rio's lead iron ore negotiator in China was infact an Australian citizen. However, the Anglo-Australian company refused to confirm or comment on the report.
Eversince their arrest by Chinese authorities in July last, Hu and the three fellow-accused were under detention.
China's state-run Xinhua news agency quoted the Prosecutor's office as saying that the accused used their clout and inducements to further their company's business interests, thereby undermining the prospects of other firms.
"It is understood that the Shanghai Municipal First Intermediate People's Court has accepted this case according to the law," Xinhua said.
The case is a major headache for Australia's Mandarin speaking Prime Minister Kevin Rudd, with his opponents likely to milk it for all its political worth. He may well have to do a balancing act without being seen as overly accommodative to China which is Australia's biggest trading partner.
Despite the official version, there are many who view the case as a tit for tat response as the corruption scandal emerged barely a month after Rio scrapped a $19.5 billion deal with China's state-owned Chinalco which obviously did not go down well with Beijing.
Rio Tinto had stoutly denied the corruption charges against its employees when the scandal first broke out.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.