A Chinese court jailed four Rio Tinto staff for seven to 14 years yesterday for taking bribes and stealing commercial secrets, a sentence Australia said was harsh.
The Shanghai Intermediate People’s Court sentenced China-born Stern Hu (胡士泰), who headed Rio Tinto’s iron ore operations in China, to 10 years in jail, with parts of a seven-year bribery term and a five-year secrets sentence running concurrently.
It handed down jail terms of 14 years to Wang Yong (王勇), eight years to Ge Minqiang (葛民強) and seven years to Liu Caikui (劉才魁), all Chinese nationals.
The four men, dressed casually in sports jackets, stood for the verdicts, which came nine months after they were first detained.
Rio Tinto immediately sacked the four and voiced hope the case wouldn’t affect its vital trade with China.
“In accordance with our policies we will terminate their employment,” said Sam Walsh, the company’s iron ore chief executive, in a statement, describing their behavior as “deplorable.”
Rio chief executive Tom Albanese said ethical behavior was “at the heart of everything we do” as he stressed the importance of the company’s relationship with China, the world’s biggest market for iron ore.
Internal investigation had shown that all wrongdoing was outside company systems, Rio said.
Canberra acknowledged there was convincing evidence of corruption, adding that ties with Beijing would not be hurt by the verdict in a trial that has been closely tied up with politics and diplomacy.
However, Australian Foreign Minister Stephen Smith said he still had “serious unanswered questions” about the most controversial part of the trial, covering the stealing of commercial secrets, which was held behind closed doors.
Smith said China had missed a chance to clarify its secretive and often confusing rules about what constitutes a secret.
“This was an opportunity for China to bring some clarity to the notion or question of commercial secrets,” he told a news conference in Canberra, referring to a decision to close the portion of the trial dealing with commercial secrets to Australian diplomats.
“As China emerges into the global economy, the international business community needs to understand with certainty what the rules are in China,” he said.
“On any measure, this is a very tough sentence. It is a tough sentence by Australian standards. As far as Chinese sentencing practice is concerned, it is within the ambit or within the range,” he said.
“I don’t believe the decision that has been made or has occurred will have any substantial or indeed any adverse implications for Australia’s bilateral relationship with China,” Smith said.
The court said the defendants helped obtain information from confidential strategy meetings of the China Iron and Steel Association, which represents the steel industry in price negotiations.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft