\nWhatever the full truth of the charges against them (Hu pleaded guilty to a corruption charge but not to charges involving commercial secrets), corruption in the iron-ore business in China was known to be rife due to an import licensing system which favored a few major steel producers and created a two-tier price structure.<\/p>\n
The ore trade in China may be cleaned up, following a change in the pricing system announced March 30, but foreigners in other businesses are left worrying.<\/p>\n
In addition to the threat of criminal action for commercial ends, there is concern that the businesses may become caught up in Chinese political infighting, in which corruption accusations are a common weapon. Hitherto, senior personnel of big foreign companies have been largely exempt from criminal charges.<\/p>\n
Many see the Rio case as a sign of increased self-confidence in China; a feeling that foreign capital is less needed now. That Hu was born in China and had emigrated to Australia may have added an element of personal retribution.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
In the wake of the sentencing of Rio Tinto executives in China, Philip Bowring looks at the bigger picture of the iron ore business in the country: Whatever the full truth of the charges against them (Hu pleaded guilty to a corruption charge but not to charges involving commercial secrets), corruption in the iron-ore business […]<\/p>\n","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[116,2,10],"tags":[3936,982,2966,5713],"class_list":["post-56258","post","type-post","status-publish","format-standard","hentry","category-world","category-economy","category-law","tag-corporate-corruption","tag-foreign-companies","tag-iron-ore","tag-rio-tinto","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\n
Philip Bowring: China Gets Tougher<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n