(Episode 295; 13 minutes 28) Earlier this month Rio Tinto executive Stern Hu was arrested by the Chinese secret police, reportedly for stealing state secrets. There have been subsequent reports that he could face life in jail. The situation has become a test of diplomacy between Australia and China, not to mention the politicking within this country.
So is the arrest coincidence, or is it payback for the blocking of Chinalco’s attempts to double its share of Rio Tinto? Today on BTalk Australia China expert Vic Edwards, senior lecturer of Banking and Finance at the University of New South Wales, says the failed bid is likely to have had a strong impact upon what has taken place. China is concerned about BHP Billiton and Rio Tinto’s control of the iron ore market and the effect such a monopoly will have on pricing. For almost two years, China has maintained that if there was a merger between the two companies then they would take long term steps to break Australia’s monopoly dominance in the iron ore market.
What are your thoughts? Add them to the Talkback section at the end of this post.
For background on this see:
Australia “concerned” at Rio Detention
Rio Tinto Says China Detains 4 Staff
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