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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Australia hopes to raise China/Rio case at ASEAN Mon Jul 20, 2009 10:45pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Rob Taylor CANBERRA (Reuters) - Australia's Foreign Minister Stephen Smith said on Tuesday he will raise China's detention of an Australian Rio Tinto mining executive for spying with his Chinese counterpart at a regional security meeting in Thailand. Smith said he hoped to meet China's Foreign Minister Yang Jiechi at this week's Association of Southeast Asian Nations Regional Forum in Phuket in what would be the highest-level meeting yet on a case that has strained Australia-China ties. "If my Chinese counterpart is there, I hope to have the opportunity to speak to him about Stern Hu," Smith told Australian state radio. Chinese authorities this month detained four China-based Rio Tinto employees, including Australian Stern Hu, the miner's top iron ore salesman in China, alleging they were involved in stealing state secrets. Rio has defended its employees, saying claims they bribed Chinese steel mills were unfounded. The detentions have raised concerns about doing business in China and overshadowed critical 2009 iron ore price negotiations in China, but Rio's share price has been little affected. The shares added a further 3 percent on Tuesday to stand at A$54.94 by mid-session, up from as low as A$47.64 on July 13, on expectations of an improving global outlook for commodities. Australia has warned China that the world is watching how it handles the Rio detentions. The Australian government and Rio have said the detentions will not affect trade, but an influential opposition lawmaker has warned the detentions could see laws covering investment in Australian resource firms by foreign government-controlled entities, including state-owned Chinese firms, tightened up. Senator Barnaby Joyce, the leader of the conservative Nationals party in the upper house, said he would push for the Senate Economics Committee, inquiring into foreign investment by state-owned enterprises and sovereign wealth funds, to recommend an overhaul of foreign-investment regulations. "It raises all sorts of complications with corporate issues becoming diplomatic issues. I don't have to prove that any more in the light of the Stern Hu case," Joyce told the Sydney Morning Herald newspaper on Tuesday. "Ownership of Australian businesses by state-owned enterprises is an inherently unhealthy thing and once you have ownership of our nation's resources by another nation's state-owned enterprises it is even more problematic." These concerns were expressed last month over the failed plan for Chinese state-owned aluminum firm Chinalco to substantially increase its stake in Rio. The $19.5 billion tie-up collapsed when Rio joined forces with BHP Billiton's iron ore operations. China is Australia's biggest trade partner, worth $53 billion last year, and iron ore exports injected $14 billion, powered by Rio, Australia's BHP Billiton Ltd and others. "FACADE OF LEGALITY" Australia has expressed frustration about the lack of information on the detentions and Prime Minister Kevin Rudd is under pressure to intervene with China's top leadership. Continued... 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