China, State Secrets | featured news

China says the case will help bolster foreign investment, others fear a chilling effect. Rio Tinto’s bribery drama reached a new climax when China formally -- and finally -- arrested four employees of the Australian mining giant on Wednesday. But there are signs that China is beginning to play down the matter by charging the four with less serious crimes than expected, perhaps over fears that China's sovereign fund, along with thousands of state-owned companies, might otherwise be unwelcome in overseas markets in the future.

The Anglo-Australian mining giant rejected Chinese allegations that its employees detained in Shanghai were involved in bribery and stealing state secrets.

The government of Prime Minister Kevin Rudd has been walking a political tightrope since the detention last week of an Australian mining executive who is accused of stealing state secrets.