China Begins Trial of 4 Rio Tinto Employees

Shanghai No. 1 Intermediate People's Court is seen Thursday, March 18, 2010 in Shanghai, China....

Shanghai No. 1 Intermediate People's Court is seen Thursday, March 18, 2010 in Shanghai, China. Australia expressed disappointment Thursday that charges of stealing business secrets against one of its citizens would be tried in a closed court in China, and some lawmakers doubted the mining executive involved would get a fair hearing. Australian national Stern Hu is one of four employees of mining giant Rio Tinto who are due to face a court in Shanghai on Monday charged with stealing commercial secrets and taking bribes. (AP Photo/Eugene Hoshiko)

(AP)

An Australian executive and three other employees of mining giant Rio Tinto went on trial Monday on charges of stealing secrets and offering bribes in a case viewed as a barometer of China's handling of foreign business.

China has warned against politicizing the case, which has been an irritant in relations with Australia. Australia has protested the plan to close court sessions involving the commercial secrets charges.

The trial comes at a time of friction with the U.S. over China's currency policies and doubts among some in the foreign business community over Beijing's commitment to an open and fair business environment.

Australian citizen Stern Hu and three Chinese nationals were arrested nine months ago at a time when Rio Tinto was acting as lead negotiator for global iron ore suppliers in price talks with Chinese steel mills. Hu was Rio Tinto's senior executive in China in charge of iron ore.

The four were taken into a Shanghai court early Monday out of the public eye.

Few details of the allegations against the suspects have been made public, and the four Rio Tinto employees have not been allowed any public comment since their arrest. Lawyers contacted over the weekend, ahead of Monday's trial, refused comment.

The Australian Department of Foreign Affairs and Trade issued a statement saying it was disappointed with the Chinese court's decision not to allow its consular officials to attend sessions having to do with commercial secrets.

"The Government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra. The Australian Government does not propose to make further representations on this matter," it said in a statement issued over the weekend.

It said Hu's lawyer, Duan Qihua, would be present throughout the trial. Australian consular officials will attend hearings involving the bribery charges, and the consul-general for Shanghai, Tom Connor, was seen entering the court. He did not speak to several dozen reporters gathered in front of the court.