China has formally arrested four employees of Anglo-Australian mining giant Rio Tinto on charges of bribery and stealing commercial secrets from the nation's steel industry, further fuelling diplomatic friction between Canberra and Beijing
Australian citizen Stern Hu, head of Rio's iron ore business in China, and three Chinese colleagues, had obtained commercial secrets about the steel industry through 'improper means' violating criminal law, Xinhua reported, citing a statement from the Supreme People's Procuratorate.
No formal charges have been laid yet, but the arrest warrants mean the authorities can continue detaining the four men while they make further investigations.
Mainland lawyers said the latest accusations were less serious than earlier allegations of stealing state secrets but the men still faced up to seven years in jail if convicted.
Mr Hu and his colleagues - Liu Caikui, Ge Minqiang and Wang Yong - were detained on July 5 by the Shanghai State Security Bureau for suspected spying and stealing state secrets.
Their detention came amid protracted iron ore contract negotiations between Chinese steel mills and mining companies including Rio, raising suspicion in some quarters that the men were being used as bargaining chips to force prices down.
Relations between Australia and the mainland have since hit a new low, undermining a renewed investment push by Chinese companies into Australia's resources sector. Attempts by Beijing to block a speech in Canberra by exiled Uygur leader Rebiya Kadeer raised tensions further.
