ASSESSMENTS

China, Australia: The Espionage Case Continues

Jul 14, 2009 | 17:25 GMT

Summary

Anshan Iron and Steel Group Corp. came under investigation on July 14, as the Chinese Ministry of State Security continues to round up people involved in the Rio Tinto espionage case. This is the first espionage case since China has passed amendments to its laws guarding state secrets at the March National People's Congress, which expanded the scope of economic and commercial espionage. Although many questions still linger on how this will affect Sino-Australian government relations and whether this qualifies as an espionage case, a state agenda to reconsolidate central control over the Chinese economy is one of the main drivers behind Beijing's crackdown on Rio Tinto.

China's effort to regain control of its economy is a primary factor in the espionage case. ...

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