Language of Money papers over Rio Tinto tensions
Australia has rolled out the proverbial red carpet for visiting Chinese leadership signing billion dollar agreements on mutual Trade and Investment.China will invest in Australia’s resource and transportation sector making it easier for resources to be exported to China.The Chinese speaking Australian PM reportedly entertained the visiting Chinese delegates with Mandarin jokes as 10 deals worth more than $8 billion was signed.Australia is a mineral rich country with low population density and a resultant small domestic demand base.Its need for capital and investment to develop its resource sector complements voracious Chinese demand perfectly.Despite some tensions on account of different political systems and ideologies,the language of money has brought the nations closer.Chinese spotty legal system came under the scanner when Australian executives of Rio Tinto were arrested over spying charges.The arrests reportedly came due to high iron ore prices being charged by international companies from Chinese steel mills.China had tried to solve this problem by buying foreign mineral deposits,but the failure of Chinalco in buying Rio Tinto assets for $20 billion allegedly due to protectionist sentiments had incensed the authorities.
China confirms Rio Tinto executive was arrested for spying, alleging theft of state secrets – CEOworld.biz
Four employees of the Anglo-Australian miner Rio Tinto Ltd. have been arrested over alleged stealing of China’s state secrets, including Stern Hu, general manager of the company’s Shanghai office.The maximum penalty for a conviction on espionage charges under Chinese law is life in prison.China said that it would handle the spy case related to Rio Tinto employees “according to the law”.“Hu is suspected of stealing China’s state secret. The four people including Hu had been detained by China’s security authorities Sunday evening,” said Chinese Foreign Ministry spokesman Qin Gang at a press conference Thursday.
Rio Tinto’s failed Chinalco deal greeted with relief in Australia – Telegraph
The prosective deal had been strongly opposed by wide sections of the public and political leaders, who were concerned over the influence China could exert over the country’s national resources if it took a major stake in Australia’s biggest miner.The Australian sharemarket rose 1pc as investors cheered Rio’s decision to enter a venture with rival miner BHP Billiton instead of the Chinese firm.
Countries round the world clamour for Chinese investment
Its not only Australia but countries from around the world that are looking for Chinese investment.Sovereign crisis hit Greece is also looking to Chinese investment to spur growth.Underdeveloped African countries have been the prime target of Chinese companies for a long time.Soft loans and grants have made Chinese companies the favorite partners for African governments as China is not too choosy over the human rights track record of the African rules.Mongolia and Afghanistan are also trying to develop their mineral wealth through foreign investment with China already managing a copper lease in Afghanistan.
Australia, China sign major deals, push free trade – Yahoo
Google+Australia and China signed new deals worth 10 billion dollars (8.8 billion US) Monday and vowed to push for an early free trade agreement as they ignored diplomatic concerns to focus on economic ties.Prime Minister Kevin Rudd warmly welcomed China’s Vice-President Xi Jinping to Canberra, entertaining 300 Chinese delegates with jokes in Mandarin, as he spoke of the booming economic ties with Australia’s biggest trading partner.
“If we are going to face the global economic challenges of our time, then we must do so together,” Rudd said, adding that total trade between Australia and China grew by 15.1 percent to 85 billion dollars during the slump of 2009.Xi, who is tipped to succeed President Hu Jintao in the next two years, is the first high-level Chinese official to visit Australia since the jailing of Rio Tinto executive Stern Hu in Shanghai in March.That issue, along with a visit by an exiled Uighur leader placed strains on the relationship further tested by fraught climate change talks in Copenhagen at which Rudd allegedly used a coarse phrase to refer to Chinese negotiators.Speaking to a business luncheon, Xi said the relationship between the nations had set “an example” for other countries which have different political systems, cultural traditions and levels of economic development.
