【2010.3.18华尔街日报】China Sets Trial for Rio Tinto Executives

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原文链接：http://online.wsj.com/article/SB10001424052748704743404575127443615761172.html
China Sets Trial for Rio Tinto Executives By JAMES T. AREDDY
SHANGHAI—China scheduled the trial of four Rio Tinto PLC executives accused of commercial crimes, marking the final stages of a case that has roiled Beijing's relations with Australia and fueled concerns about its treatment of foreign businesses.
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The Shanghai No. 1 Intermediate People's Court

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The four executives, including Australian national Stern Hu and three Chinese nationals, will be tried starting Monday in the Shanghai No. 1 Intermediate People's Court, according to court documents released Wednesday. The news comes more than eight months after the men were detained on murky allegations of stealing state secrets in the midst of tensions between global miners and China's steel industry over the price of iron ore. The accusations were later downgraded to stealing commercial secrets and taking bribes.
The trial's opening date sets up a potentially awkward situation for Rio Tinto. The Anglo-Australian mining giant's chief executive, Tom Albanese, is scheduled on the same day to participate in a development conference in Beijing attended by senior Chinese officials, meaning that the CEO's most visible effort to reaffirm strong relations with China's government since his executives were detained will take place at the same time they are being tried.
Rio Tinto has denied that it or its employees did anything wrong. In a statement, it "reiterate[d] its hope for a transparent and expeditious process for its employees."
The trial is scheduled to last no more than three days; even complex cases in China often conclude in a single day. In China's politicized, opaque legal system, verdicts aren't necessarily considered merely on the merits of a case, lawyers say.Rio Tinto and China
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See a timeline of China's detention of four Rio Tinto executives.


The investigation of Mr. Hu and his colleagues—Ge Minqiang, Liu Caikui and Wang Yong, all part of Rio Tinto's iron-ore sales operation—has so far proceeded in secret. The four have been held out of the public view since being detained, with limited access to lawyers.
Lawyers for some of the accused men said they had few details on the planned procedures, as is often the case in China. Court documents, Rio Tinto's statement and an Australian government spokeswoman suggest at least aspects of the trial dealing with commercial secrets will be closed to the public and to Australian consular representatives.
Australian officials said they expect to be able to attend parts of the trial. The court said the trial will be open, but that doesn't mean the public or media will be granted access.
The court's Web site on Wednesday listed a docket No. 34 naming "Hu Shitai," using Mr. Hu's Chinese name, and the other defendants starting Monday. Spokesmen for the Shanghai court and prosecutor couldn't be reached to comment.
A trial could offer fresh details on a case that has sent shivers through the foreign business community in China. The minerals salesmen were detained in July and formally indicted in February on allegations of soliciting and accepting "huge" bribes from several Chinese steel enterprises—possibly, for instance, to ensure the mills were allocated iron ore.
The indictment also alleges the four used "improper" means to obtain Chinese commercial secrets from steelmakers. It isn't clear what those secrets might be, and the part of the trial dealing with the matter is scheduled to be closed to the public.
State media in China have suggested charges against local steel company executives may also be part of the Rio Tinto case, but that hasn't been confirmed.
Rio Tinto is one of the most profitable foreign companies operating in China. It has also been the subject of controversy. The executives were detained amid broader disputes about the company's pricing practices and about the Anglo-Australian miner's rejection of an attempt by state-owned Aluminum Corp. of China Ltd. to pay $19.5 billion to increase its stake in Rio Tinto. The timing of the detentions raised concerns among lawyers and businesspeople that such tensions were a factor, reflecting unusual new tactics by Beijing to flex its muscles in commercial matters.
Beijing has portrayed the matter as a straightforward commercial crime, not a political issue.
Recent signs indicate Rio Tinto is determined to get past any rifts in its China relations. This week, a person familiar with the matter said Rio Tinto and Aluminum Corp. of China are in advanced talks to jointly develop the Simandou iron-ore project in the West African nation of Guinea.
Mr. Albanese, meanwhile, is scheduled to take the stage in Beijing Monday at the China Development Forum. He and other top Rio Tinto executives have attended the conference in the past. The invitation-only event gives heads of multinational companies a rare opportunity to interact face-to-face with top Chinese officials.
According to a draft agenda posted on the forum's Web site, Mr. Albanese is scheduled to speak on "Strengthening Global Cooperation for a Mutually Beneficial Future," in a session to be headed by Ford Motor Co. CEO Alan Mulally. Rio Tinto on Wednesday confirmed Mr. Albanese's plans to attend the forum.
Premier Wen Jiabao is expected to meet with at least some of the attending CEOs on Monday, according to a forum spokeswoman. Rio Tinto is listed on the forum''s Web site as one of 17 corporate sponsors of this year's event, which according to the forum requires a contribution of more than $145,000.
The Rio Tinto case has aroused great attention in Australia, especially because it surrounds the detention of an Australian citizen. The Australian government has maintained that it had to let the case proceed according to Chinese law, but has asked that it be handled quickly and transparently. Canberra has also said that it had made "vigorous and active" representations to Beijing.
The case's end could help soothe lingering strain with China, Australia's biggest trading partner, but a harsh verdict for Mr. Hu could fuel further tension.
The Australian government spokeswoman on Wednesday said the part of Monday's court proceeding related to commercial secrets is scheduled to be closed even to consular representatives, in accordance with Chinese law and "at the request of one of the parties."
The spokeswoman said consular officials intend to attend proceedings as permitted by authorities in Shanghai.
Tao Wuping, an attorney for Mr. Liu, said he hasn't received word on what time the proceedings will begin and said he expects a relatively closed trial due to the nature of the charges. Zhai Jian, the attorney for Mr. Ge, said he was notified by the court that the family members of the four defendants would be permitted in the courtroom.
—Ross Kelly, Liu Li, and Bai Lin contributed to this article.
Write to James T. Areddy at james.areddy@wsj.com