Monday, April 12, 2010

Sentence of Rio Tinto's Mr Stern Hu to 10 years

The sentence of Australian Rio Tinto executive Mr Stern Hu to 10 years by a Chinese court last month for charges of bribery and appropriating commercial secrets drew comments by the Australian government. Officials interpreted the sentence as "harsh". Others commented on the trial's lack of transparency. However, while the sentence might be harsh given that sentences for "extraordinarily large bribes" in China is somewhere between 5 and 15 years, one might question whether Mr Hu's gain was "extraordinarily large" in the Chinese context. What have not been probed in-depth are the internal machinations of the Chinese government leading up to Mr Hu's trial. China's foreign affairs ministry, closely associated with the case, is considered as the most liberal of China's ministries. However, leading up to the trial, some conservative ministries mooted in the local press that any lenient sentence or deal making in the case would not be appropriate. In this context, Mr Hu's sentence may also reflect a growing influence of more conservative elements within the Chinese leadership. Reading the Chinese political and business environments is never easy.