Rio Tinto spy door hit the soft underbelly of China's economic security

 Comics: Rio Tinto caught the confidentiality of the steel industry? Chinese steel enterprises why there are so many relevant in-depth reflection.
one big downgrade Rio spy gate qualitative case turned bribery
1, Rio Tinto big downgrade from the qualitative to the trade secrets of state secrets
Recently, Shanghai prosecutors on suspicion of violation of trade secrets, non-national staff of accepting bribes, on the Rio Tinto chief representative office in Shanghai formally arrested Hu, etc. 4. To provide the trade secret of Mr Hu and other Chinese steel companies involved about the suspect, the investigating authority has in a recent review of the arrest brought the prosecution. This is 60 years of New China's largest trade Spy case, but also from the economic reform and opening up the biggest shaking leak case.
occurs from Rio Tinto, to attract a great attention. The case also led to Australia's delicate relationship between the changes. This should be said that bilateral relations are very rare. and for the people stir in Australia when Kadeer, China formally arrest the Hu et al. However, from the initial charge was extension of abortion, and second, and Australia iron ore negotiations reached a stalemate. Chinese police have arrested people related to Rio Tinto, which are given a more political. must be pointed out that economic interests and political has always been inseparable, but diplomacy is the national interest service. from the macro level is concerned, the case does Rio Tinto had an impact on Sino-Australian relations. However, meso and micro level, the circumstances surrounding this case is not complicated, as long as charges are concerned the fact that Hu and other Chinese arrest and bring to justice any problem does not exist. China Hu and other prosecutors formally arrested four people, has mastered the certainty proves the fact that evidence.
2, foreign manager hidden rules
spy case, according to Rio Tinto's task force preliminary identification, in addition to large steel enterprises in the Mainland for business intelligence bribery charge, the representative in China, Mr Hu Rio Tinto also suspected of accepting bribes of small steel enterprises to help them achieve More iron ore import quotas. Mr Hu, by the fast money-making, only the value of billions of dollars of luxury villas to have internal staff, gather intelligence in the industry, stealing is not a year or two things. in the public, to get more ore for steel mills, first of all to meet their own production, the excess part of the then thrown into the spot market; in private, to give relevant information , an individual may receive benefits from.
conviction from the analysis of the judiciary, Mr Hu, who in addition to the domestic steel prices to steal trade secrets, but also to the domestic steel enterprises pay bribes to gain more market share, opened the industry's potential rules. It is understood that Mr Hu bribes to a number of small steel mills mainly in the Mainland, the purpose is to get more iron ore import quotas. in the Mainland, iron ore import quotas currently still rests in the hands of several large steel companies. Obviously, Rio Tinto iron ore sales in China, ;, accepted the Chinese steel industry in the various China's steel industry is the field of economic crime, if the Chinese steel industry as a very important industry to be characterized as leaking state secrets, the instant noodle industry is not a national strategy to deal with as an ordinary commercial crime? from a legal point of view, This is untenable. in legal language and legal means to defend their dignity and interests, rather than to a political style of conducive to safeguarding China's investment environment.
of a wall.
set this channel wall, no doubt deal with Sino-foreign disputes as a positive signal. if defined as state secrets, spying, there may be a secret trial, convicted; and positioned as a commercial secret crime to publicly Court. Tinto case insisted on an open, just and fair trial given the suspect in the defense of opportunities, the public of their crimes in the world, the facts speak, heavier than a simple piece of paper or a lighter more convincing decision and deterrent role, but also better understanding of the international community and recognized.
two secrets to reveal any of seven hundred billion state-owned enterprises tuition too innocent
1, trade secrets exposed China's economic security frequently sounded the alarm recently
With the news media disclose the proof, originally from China and Baoshan Steel Association, River Steel, Wuhan Iron and Steel, saddle, sand Steel, Mountain Steel, Maanshan Iron & Steel, Shougang, Valin Steel, Bao Steel, Taiyuan Steel, totaling 16 rate negotiation team consisting of continuously regular meetings held to discuss progress in the negotiations and measures. However, it is the temptation of local interests, the relevant persons involved actually be where the steel industry or the industry on important confidential data leaked to the force Billiton Iron Ore negotiating partner, resulting in domestic iron ore negotiations, frequently exposed the team's bottom line, which not only seriously jeopardize the overall interests of the iron and steel enterprises, but also exposed the confusion in the management of iron and steel enterprises.
Everyone knows that the forces of Australia Rio Group is one of the world's three major mining companies, BHP Billiton it, along with Brazil's CVRD, a virtual monopoly on most of today's world iron ore production. In recent decades, China's steel production has grown rapidly to become the world The most important importer of iron ore (about 60%). Therefore, including the three Rio Tinto mining company, including theft of state secrets in China include: China's production capacity of the iron and steel enterprises, the state needs and plans for the steel iron and steel enterprises in the internal cost, production cycle and ore reserves and so on.
mastered these data, the three major iron ore mining enterprises will be able to negotiations, develop a clear pricing strategy for China. In fact, the understanding of China internal cost iron and steel enterprises, it can accurately grasp the iron ore price increases, if we understand the development of China's overall policy for the steel and plans iron ore prices more jammed the soft underbelly of China. However, Mr Hu, who is precisely the manipulation of the Chinese espionage case is equal to the commercial confidentiality of fully exposed to the opponent.
2, the State suffered huge losses, case data such as production scheduling, and even some large steel enterprises steel production per month, sales are also very clear. It is for these past 6 years commercial spy leaked confidential, forcing Chinese steel enterprises in the iron ore import bill pay more than 7,000 billion yuan, the Chinese equivalent to the sum of the national steel industry's profits more than doubled over the same period, more than Beijing, Shanghai, Tianjin, Chongqing, Liaoning Province, together with four municipalities, the sum of revenue a year.
more Importantly, Mr Hu, who act as Usually the main task is to visit the country's iron and steel enterprises, exchange of information, and then write reports that information. In the course of the visit, steel mills, production status, production line start conditions, production costs, and production planning next month and other key data are displayed naked in front of these analysts. even with the steel mills cautious leadership, some Gongchoujiaocuo, the critical data is no longer a secret.
fact, for multinational corporations Chinese economic espionage, the Chinese experts have repeatedly issued warnings; arrested last year, the Ministry of Commerce Secretaries Guo Jingyi of China, but also because of bribery of foreign acquisitions of Chinese enterprises in the drafting of the Act specifically for the foreign-left when the was a serious threat to China's economic sovereignty, the arguments; and even news that the past 10 years, the survey in China, 500,000 cases of corruption, Liu Cheng and more concerned with international trade and foreign hh signs that entered the global economy, China has reached a lot of harm to heavy rectify their economic security and the time behavior of the investment environment. can be expected in this and trade system and other aspects of economic espionage against corruption and its associated large efforts to make further reforms.
3, spy gate deep reflection required urgent need of legislative protection of economic security
said, security situation, from a more macro level view of our national economic security system and the economic development model to address the new global pattern of economic competition. hidden security system also will be revealed. domestic indifferent sense of confidentiality, absence of economic security legislation, lack of relevant regulatory authorities such as the objective reality, for multinational corporations to steal information to create a favorable environment, such as further supplemented by Development and Reform Commission has been set up under the Economic Security Department, but compared with the increasingly rampant industrial espionage, the related human, material and financial resources are not enough inputs.
addition to strengthening the legislation, strengthening law enforcement, it also should be noted that In contemporary China, with the introduction of the rapid expansion of foreign investment, foreign has become an important component of China's economy, many multinational companies account for more than half of China's market share of foreign-funded enterprises in many industries has been dominating the world even. a research report, This process breaks the law in the foreign-funded enterprises in China, the number of cases on the rise all the way, a large number of economic cases related to international trade and foreign. This situation can not be ignored. In the past the Chinese too much about protecting the interests of foreign companies, and now they are bound by legislation time.
III, Rio Tinto China spy gate complexity of the Australian mentality of worrying
1, Australian media reported that China has become the focus of pressure to make irresponsible remarks
5 months after the incident, China and Australia have already started a number of senior government confrontation, Australian Prime Minister Kevin Rudd and 5 were expressed on this matter of particular concern, and even brought back to Australia, Hu proposed to deal with the unreasonable requirements. And in this short period of time more than 1 month, the Australian side or the opposition, whether people are on government relations between China and Australia made a negative evaluation of bilateral relations quickly became the focus of world attention. < br> part of the Australian media reported from the start, Rio Tinto case, to seize and hold the Chinese judicial system. They emphasized how the judicial system in China is different from Australia, to take a big fuss. The implication of these reports is the immaturity of China's judicial system and backward. This argument not only meet the Australian system of national pride and vanity expansion, but also aroused the sympathy of Australian public opinion on Hu and the Chinese government's dissatisfaction.
more concern is the performance of the Australian Government out of the pan-political tendency, known as After careful observation of China launched anti-China chorus, 12, > This should be a simple deal, China has repeatedly come forward to clarify that Australia make great efforts to remedy, hh waste of a great political and economic costs. Clearly, the focus on efforts to expand the area of the case and other disputes twists and turns, has been quiet in the mix of the original Australian relations. At present, Australia's insight, but also the current situation of profound reflection. in the political and economic contacts in Australia showing a friction, in fact, back in Australia to China reflects the mentality and the typical complexity of a Western-style emotional loss.
2, behind Rio Tinto case must demonstrate responsible big country style Chinese
from the time point of view, , but it is likely to result ; place the real reason. In fact, door speculation and took the opportunity to attempt to interfere in China's internal affairs and sovereignty, and always maintain a sufficient self-restraint and rational argument and the outside world with ulterior motives to respond in a timely manner, to increase China's judicial, economic and other aspects of transparency and fairness to eliminate bias inherent in the outside world to China once again demonstrated a now being ignited Rio Tinto employees after spy case appeared to be accumulated in conflict to a climax. If you look at the Australian media in recent days on the Rio Tinto employees render the spy case, China-Australia relations is really a City Buildings To destroy the pressure aspects. He said Kevin Rudd-led Labor Party came to power for some time, but has not issued any guidance for China's policy of diplomatic relations between the two countries and documents. in terms of the geopolitical point of view or from the perspective of economic and trade ties, Australia needs China China needs Australia.
understand the operational processes of party politics in Australia, perhaps to a certain extent, ease of our topics, or in the current mm of the Liberal Party during the administration of the past 10 years. It also shows China policy and opposition Labor Party in Australia is not a big difference, now take the o geographic location and has had a long time with the parent core allies the United Kingdom and the U.S. alliance policy, which very few in Australia to face and deal with the relationship between a big country. But China's rising influence in the Asia Pacific region and Australia and China the close relationship between trade and economic complementarity Australia must adapt to the changes made in its relations with China out of infancy.
from historical experience, the interaction between the two countries, not to magnify the incident a case, to play did not know negotiations, through the spy case of Rio Tinto's embarrassing .8 17, the Steel Association announced third-largest iron ore Baosteel and Australian iron ore companies to achieve results of the negotiations FMG, powder ore price 35.02%, 50.42% lump ore prices, a decline of more than Japan and Australia had reached the starting price, contract period from 2009 July 1 to December 31, FMG Chinese steel companies will sell about 2,000 tons of iron ore. This is a welcome result, though still not immediately get rid of the monopoly of the three major suppliers, But for a unified iron ore import prices, differentiation of the Big Three negotiate a monopoly on the long association of great significance.
this result did not materialize in the Steel Association had made , taking into account Japan's Nippon Steel starting earlier, the spot ore prices rose sharply in the latter, can be reached now at this price, there is no doubt hard to come by, let the Chinese steel industry finally saw the br> As a long absence at the negotiating table, the right to speak, after years of China's steel prices will rise every talk, in which fine ore in 2005 rose 71.5% in 2008, up 79.88% fine ore (ore powder Bacheng total imports accounted for more) . from 2003 to September 2008, imports of iron ore prices rose by 5 times. According to statistics, in 2008 China imported 443.6 million tons of iron ore, the cost of an increase of 146 billion yuan, equivalent to annual profits of the national iron and steel enterprises the sum of a negotiation in a passive, the national 3.6 million workers would no use of steel a year of hard work. or from another point of calculation, we signed the agreement on the word is equivalent to one-third of GDP, Shenyang, more than a year by foreign oligarchs make a go. Thus, iron ore talks have not only business issues, industry issues, take public letter to Minister Li's words, the negotiations are far from reaching target FMG is overestimated the significance of the price. It is a little progress, but not the key to progress in a critical moment. Overall, neither the talks help future negotiations on a long association ore pricing mechanism, but also help to China regain pricing negotiations.
Obviously, this is a special price alone with the three major iron ore companies mm difficult negotiations will continue; contract period from 2009 July 1 to December 31, next year year kicked off a new round of talks soon, the new pricing mechanism is still negotiating with undetermined; China imported iron ore from FMG of the total 1 / 10; FMG's second-largest shareholder in China's Hunan Valin mm Iron and Steel Group holds FMG17% of the shares, making the negotiations can not be without influence.
Steel Association's goal is to develop a long association of iron ore prices for the international iron ore pricing, it seems that both without success.
Externally, the Steel Association subject to the iron mining monopoly, each break is not easy. not because of political or diplomatic, but rather the market. Because there is rigid demand for iron ore in China, Rio Tinto reduction of dependence means dependence on the increase in iron ore giants, therefore, want to get from Vale iron ore 40% expected decline, it was impossible. In fact, July 20, Vale publicity relevant person in charge RenataBellozi has confirmed the company is prepared to cooperate with some of the fact that Chinese steel enterprises, as 40% decline is not clear. If China wants to make a breakthrough, only to hurt the enemy a thousand, eight hundred of the move from loss surgery strict control of domestic steel production capacity, resulting in oversupply of iron ore in order to drive down prices. But the fact on the contrary, domestic steel prices in the case of excess production capacity rose, the first two months of imports of iron ore Diego high, so that the Chinese public letter Minister of August 13 issue representatives, the long association with the presence of the spot price, but also has a long association mining is the big steel mills, if the Association to try to unify the country in steel prices and quantities of iron ore, the first object is the big steel mills, this way, CISA can exist is unknown. Therefore, the Steel Association, they should be tight encirclement, the first peace within, and outside together. the internal market is the biggest risks is not reunification.
3, Made in China not achieved overnight. On the other hand, we should, through China to the world demand for iron ore, the amount of days, not so long deep reflection optimization model of economic development. If it is not preferred over the heavy chemical industry, the domestic iron As the ore demand will not reach 500 million tons a year to the extent of import of foreign iron ore giant that does not mean the soft underbelly of China to seize the significant price increases at every turn.
a long time, China's economic growth was primarily driven by the government-led investment, technological progress in the role of economic growth far behind developed countries and newly industrialized countries, rapid economic growth while making a lot of energy and raw materials consumption. In particular, the rapid development of heavy industry is swallowing large part of the energy and basic resources. At present, China's industrial sector energy consumption accounts for 70% of total energy consumption over the iron and steel, nonferrous metals, chemicals, building materials, energy consumption, high energy-consuming industries, but also the total industrial terminal more than 70% of consumption. These growth despite high energy consumption industries driving the growth of GDP, but the amount of primary energy per capita is far below the world average of China, harm than good as.
as China in the international economy pattern is still in the bottom of the division of labor in the short term is difficult to challenge the developed countries in international commodity pricing of monopoly power, so even though China is a big buyer of commodity markets, it is difficult to make the international prices of primary products in the market place is conducive to their own change; Moreover, the vast majority of Chinese exports is processing, OEM manufacturing, pricing control in foreign hands, their processing can only earn a meager profit, most of the export profits are exported. Chinese workers still at a low level of income, but have to buy expensive imported energy. Obviously, the current state of this balance can not be sustained.
is difficult to overcome the short term because of supply bottlenecks of resources, there is reason to worry about China's current high-speed economic train will one day because of slow or even stop the above reasons. After all, China's current economic size is not large, only about 6% of the world's total, to greater reliance on the existence of the world's resources; if China par with the United States economies of scale, it is clear dependence on the world's resources more important. then the United States that China may not have the capacity of the global allocation of resources, economic development would have difficulty continuing.
Therefore, China should strive to gain international commodity pricing On the other hand, but also to improve the system and technology innovation to effectively change the mode of economic growth and firmly curb blind investment, low-level redundant construction, eliminate waste, reduce consumption and improve resource use efficiency, to form a favorable production patterns and resource conservation consumption.