Fallout from the Stern Hu case

The Black China Blog can confirm that Rio tinto has ordered all foreign staff out of China. “There are no expats left in China” one Rio executive told me.

The same order has also apparently been given within the ranks of BHP Billiton, although we have not been able to confirm this.

We understand also that both companies are presently conducting urgent reviews of their internal security, with everything from email accounts being checked to meeting rooms being checked for listening bugs. We understand Rio has ordered senior executives not to use mobile phones for any important discussion.

It seems that the other, and perhaps real objective from the Chinese side is for the formation of a single buying entity for iron ore and similar resources. China resented the recent various attempts of BHP Billiton and Rio Tinto teaming up, accusing the two countries of monopolistic behaviour. Now, the Chinese themselves are forming a monopoly on the buying side. A single entity will be responsible for all buying.

With China being the world’s largest customer for iron ore, coking coal, alumina and so on, it’s hard to see how they cannot be accused of the same behaviour.

The stakes are getting higher.

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2 Responses to “Fallout from the Stern Hu case”

  1. Alex says:

    A monopoly on the buying side is called a monopsony

  2. LWS says:

    It is time to teach these Aussies a good lesson on how to behave in the Asian Continent, which they obviously do not belong in the first place. They must remember they are merely decendants of white colonial conquerers illegally transported onto Asia without our approval. Their presence is an insult to us.

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