Author: cestmoi

Chinalco-Rio Tinto Post Mortem [Copy link] 中文

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Post time 2010-3-29 20:04:54 |Display all floors
Sure they are hiding something.......hmmmm,who might have bribed him and the others? There`s more behind that story that the party wants to keep in the dark!

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Post time 2010-3-29 21:43:12 |Display all floors

Very true..

Originally posted by caringhk at 2010-3-29 16:27
[quote]Originally posted by cestmoi at 2010-3-16 10:28

Never ever trust white Australians, you will regret it.

just the likes of fake,EmuC, ZG, etc la

Hamilton thought he could trust a white Australian policeman, and lost the Melbourne F1 yesterday.
He should have known better!

The whiteys were planning for this halfcast's defeat the minute he set foot on the stolen island, so the wunder sweet and creamy whitey Button can win.

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Post time 2010-3-29 21:48:45 |Display all floors

We ain't complaining!

Originally posted by emucentral at 2010-3-29 17:28

All those charged, found guilty and sentenced, were ethnic Chinese, bribers and bribees.

The traitors were caught stealing in China for you Aussies bad bloodlines, so the lenient short sentences passed to them were more than they deserved.
They should thank the merciful and gracious Chinese Authority and legal system.

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Post time 2010-3-30 03:58:54 |Display all floors
Originally posted by ThankoPan at 2010-3-29 23:48
The traitors were caught stealing in China for you Aussies bad bloodlines, so the lenient short sentences passed to them were more than they deserved.

I'll forgive you that presumption, partly because you're a really dumb cunt, and partly because the charges levelled against the accused had changed.

Originally charged with bribery, then it ended up that they were charged with being bribed, by smaller Chinese steel mills who did not want to pay extortionate spot market prices charged by their own countrymen, via CISA, the State Owned monopoly.

There was also the issue of "commercial secrets", discussions at some trade meeting where it is unclear if it was a closed meeting, in fact it was suggested that it was open to journalists.
When those discussions were passed on to Rio employees, then the information became "state secrets" or commercial secrets.

China does have a record of innocuous information becoming "state secrets", we recall the journalist who revealed editorial directives not to mention an "incident" on the annual reminder of that incident. That journo was sent off to jail.

This case stinks to high heaven.
While the guilty plea to receiving bribes means that those charged have acted quite improperly, there is also legitimate concern that justice has been bent by the essentially corrupt nature of China's legal system being subservient to political interests.
"他不是救星, 他是一个非常淘气男孩" - Monty Python

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Post time 2010-3-30 03:59:20 |Display all floors

Report from The Age

FOREIGN Minister Stephen Smith has hit out at China over a 10-year jail term handed to Australian businessman Stern Hu, describing it as ''on any measure a very tough sentence'' and saying it put at risk the confidence needed by the global business community to operate in China.

Hu and three Chinese colleagues employed in China by mining giant Rio Tinto received sentences of between seven and 14 years after being convicted in a Shanghai court of accepting millions of dollars in bribes and stealing commercial secrets.

Judge Liu Xin broadly accepted the prosecutor's allegations, including that the men had inflicted huge losses on China by obtaining industry secrets.

The secrets had included information taken from the China Iron & Steel Association, and a steel mill's production plans. ''The four have seriously damaged the interests of Chinese steel enterprises,'' the judge said.

One of the convicted, Wang Yong, would appeal against the verdict ''as not in accordance with the facts'' while the other three were undecided, their lawyers said last night.

While the bribery convictions appeared well substantiated, the convictions and the court's tough rhetoric could add to diplomatic tensions and exacerbate concerns that China's business and political environment is becoming more difficult and unpredictable.

Mr Smith said yesterday's verdict left ''serious unanswered questions'' because Australian officials had ''very regrettably'' been locked out of that part of the trial dealing with theft of commercial secrets, for which Hu was sentenced to five years.

The minister said openness and transparency would have helped Australia and the international business community to understand and deal with the matter.

''Regrettably, China and the Shanghai court chose to go down a different road,'' Mr Smith said. ''That leaves serious, unanswered questions and a significant lost opportunity so far as China is concerned.''

However, he conceded that there was ''substantial'' evidence that Hu was guilty of bribery, based on what Australian officials had learnt through access to that part of the trial.

Rio Tinto iron ore chief Sam Walsh also accepted that the court had ''showed beyond doubt that the four convicted employees had accepted bribes'' and last night formally sacked all four for ''deplorable behaviour''.

The four Rio Tinto iron ore salesmen were originally investigated and arrested for stealing state secrets of such importance that they threatened China's national economic security, before the case was downgraded to receiving bribes and stealing commercial secrets.

Judge Liu said the actions of the men had caused 1.018 billion yuan ($A165 million) in losses to Chinese steel companies.

He said the stolen secrets included information taken from two conferences several years ago hosted by the China Iron & Steel Association, as well as the production plans of steel mill Shougang.

The industry association provided evidence that those conferences were closed, although industry observers say they may have been open to journalists and foreign traders.

The court said information was generally gathered by Hu or channeled to him by Hu's three colleagues, and then passed on to Rio Tinto headquarters.

Judge Liu said Tan Yixin, head of iron ore buying at the state-owned Shougang, met with the China Iron & Steel Association on June 8, 2009 - one month before the arrests - and then passed information to Hu that evening at the China World centre, where Rio Tinto has its Beijing headquarters.

He said Hu emailed the information to his superiors at Rio Tinto, who emailed back requesting confirmation.

The judge said Hu received a 6.5 million yuan ($A1.05 million) bribe from Hebei Jinye and $US790,000 from Tangshan Guofeng - both small privately owned mills in north China.

Hu was sentenced to seven years' jail for bribery and five years for stealing secrets commercial secrets. The total sentence was reduced from 12 to 10 years because Hu showed contrition and repaid the bribes received.

Wang Yong was sentenced to 14 years, reduced from 16, including for accepting a US$9 million bribe from billionaire steel magnate Du Shuanghua, which Wang had argued in court had been a loan which he had repaid.

Ge Minqiang received an 8-year sentence, reduced from 9.5, while Liu Caikui was sentenced to 7 years, cut from 9.

All four are expected to serve their sentences in Shanghai's Qingpu prison.

Hu is one of the most senior foreign executives to have been convicted in China and questions remain as to the motives behind the investigation. Some sources in China say the conduct of the case has been complicated by bureaucratic and political infighting.

Apart from Wang's case, the bribe payers were all said to be small and medium-sized private steel mills that were seeking access to high-quality Australian ore on long term contracts rather than paying higher prices for variable product on the domestic spot market.

The convictions will force Rio Tinto to confront criticism that governance of its China operations was not up to standard. The Age understands that after the July 5 arrests the company moved key marketing executives from Shanghai to Singapore.

Mr Smith denied that the government had not pushed hard enough on Hu's behalf. He said multiple representations were made in Beijing, Shanghai and Canberra for China to honour its 1999 consular agreement with Australia and allow officials to attend the full trial.

''I feel very much for Stern Hu and his family. While we do not condone bribery in any way I think the sentence … was harsh,'' he said.

Professor of Chinese studies at the University of Technology, David Kelly, said the trial had left the Chinese legal system's image in tatters. ''They don't realise this. The image is now they are the tough guys who do not have to be nice to anyone,'' he said.

Ann Kent of the Australian National University College of Law said the sentence ''will send a chill down the back of most foreign businesses in China''.
"他不是救星, 他是一个非常淘气男孩" - Monty Python

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Post time 2010-3-30 04:00:32 |Display all floors

Opinion piece critical of Australian handling of case

Australian whipping boy
March 30, 2010
Ian Verrender

The conviction of Stern Hu is nothing short of a sham - a sacrificial offering for a supposedly noble cause.

THAT rushing sound of water? That's the sound of thousands of people washing their hands of a problem that was proving just too difficult to solve.

Now that Stern Hu, Rio Tinto's Shanghai-based chief negotiator on iron ore sales and one of its most senior executives, has been sentenced to 10 years in a Chinese gulag, everyone can resume the business of making money.

Hu is an Australian citizen. He was tried under circumstances and convicted of charges that would never have held water in an Australian court.

But there is little chance his employer or the federal government will intervene. That time has passed. In any case, there is too much at stake - billions upon billions of dollars, in fact. And in six months, the episode will be a long-forgotten speed hump on the economic superhighway from Canberra to Beijing.

Hu and his three colleagues, who are Chinese citizens, have become roadkill - expendable casualties for a supposedly noble cause. How did it all come about?

There are those who believe it had nothing to do with last year's tense negotiations - conducted by Hu - between Rio Tinto and Chinese steel makers. Others believe it had little to do with Rio Tinto's rebuff of Chinalco's $US19.5 billion rescue package.

Perhaps they are right. Perhaps the timing was exquisitely coincidental. And there goes another flock of pigs.

Make no mistake: that rejection of Chinalco sent white-hot rage through the corridors of power in Beijing, a fact senior Rio executives in Melbourne were acutely aware of as they braced for a backlash.

Within four weeks of that rejection - China's biggest-ever single foreign investment - Hu and the other three executives were under arrest. Hints were dropped they had been conducting their nefarious operations for six years and had cost China hundreds of billions of dollars in lost revenue.

And while Chinalco, a loss-making company wholly owned by the Chinese government, maintained it played no part in the arrests, its chairman, Lu Youqing, within days let his feelings be known on the matter: ''Rio Tinto has no business credibility as a company, it is not unlikely that a few staff are suspected of breaching the law.''

At that stage, Hu and his colleagues were accused of bribing Chinese steel mills and gathering information that breached state security.

But as the diplomatic rift caused by the arrests turned into a potentially explosive trade situation, and as Rio Tinto pulled out all the stops to smooth the tenuous relationship, everyone appeared to take a deep breath and review the matter.

After the publicity surrounding the arrests, however, a total backdown by Chinese authorities was out of the question. Instead, in mid-August, the charges were downgraded substantially and significantly altered. Rather than paying bribes, Hu and his three colleagues were accused of accepting bribes.

This had the effect of removing Rio Tinto from any culpability should the four be found guilty, and given almost everyone charged in China is found guilty, that probability was overwhelming.

Had they been paying bribes, the obvious source of the bribes would have been their employer, thereby implicating Rio Tinto and possibly executives all the way to the top. Altering the charge to accepting money, however, isolated them from the company and had the effect of turning them into rogue negotiators.

All four last week pleaded guilty to accepting money. But all four rejected accusations they had been on the take to the tune of $US13 million. Who knows what pressure was brought to bear on the defendants to accept a guilty plea?

Then there is the still sticky matter of the espionage charges. That part of the hearing was held in secret, with Australian consular officials denied access.

But with Hu and his colleagues found guilty of industrial espionage, it is possible this could come back to bite Rio Tinto.

Accepting money is one thing. But what use would you have for industrial secrets, other than to hand them on to your employer?

Let's be plain here, though. What industrial secrets can you possibly have in iron ore negotiations? Price is determined by supply and demand.

Everyone knew Chinese mills were increasing their steel production and you don't have to be brilliant to figure out capacity growth over the course of a year.

The crucial element got down to supply. And it is very difficult to hide thousands of tonnes of iron ore.

And with satellite imagery, tracking down supplies and determining whether they are en route or stockpiled these days is a simple matter. Ever looked at Google Earth?

Speaking of Google, it opted to exit China a fortnight ago after continued huge breaches of security systems by hackers and demands from the Chinese government that it refused to meet.

It is a given that Chinese authorities would be using their own sophisticated satellite technology to monitor mine development and production in the Pilbara, Africa and South America, in an effort to gain market intelligence in price negotiations.

Talk to any businessman operating in China, and all will tell you they never engage in anything other than pleasantries on either mobile or fixed phones.

Bear in mind, too, that for decades China has sanctioned or at the very least turned a blind eye to counterfeiting trademarked manufactured goods on an unimaginable scale.

There is little use in attempting to deconstruct events surrounding the circus that passes for Chinese justice other than to recognise it for the sham that it is.

But where Australia once stood for the rights of the individual, it now seems happy to offer a sacrifice for the good of the collective.
"他不是救星, 他是一个非常淘气男孩" - Monty Python

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Post time 2010-3-30 04:55:06 |Display all floors

Yeah, yeah, yeah!

Originally posted by emucentral at 2010-3-30 03:58

I'll forgive you that presumption, partly because you're a really dumb cunt, and partly because the charges levelled against the accused had changed.

Originally charged with bribery, then it e ...

We've read all your rubbishy birdbrain gobbledegooks here before (plus them disgusting foul language).
Yep, your name in CD is synonymous with Australian trash.   

Indeed, the proper Chinese law was fully utilised here.
Treason in China can reap the death penalty.
These four greedy thugs were surely let off very lightly.
Politics was at play here me thinks for the show of leniency.

Let's hope would be hanjians will think twice before betraying the Motherland again.

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