Editorials

Fair business landscape

(China Daily)
Updated: 2010-03-30 07:51

Editor's note: The verdict of the Rio Tinto case is a signal that foreign companies will not be the exception when they violate the China's laws and we should not let the case jeopardize the Sino-Australia relations.

Monday's verdict by a Shanghai court against the four defendants in the Rio Tinto case drew an initial end to a months-long dispute that has defused tension between China and Australia. The four employees of the British-Australian iron ore giant Rio Tinto, including Australian citizen Stern Hu, were given seven to 14 years in jail for bribery and stealing commercial secrets.

The court case has been handled in line with Chinese laws. Only by bringing justice to the guilty can the dignity of the law be upheld. The verdict will also guarantee a healthy environment for businesses.

As an isolated court case, the Rio Tinto case should not be used to gauge the climate of Sino-Australian relationship. The case together with several other mishaps last year has sunk bilateral ties to a new low that hasn't been felt in years. This has done a disservice to building mutual trust and understanding between the two governments and two peoples.

Now that the Rio Tinto case will be soon wound up, there is no reason whatsoever for those who still want to dwell on its downside and refuse to move on.

In fact, business between the two countries remained robust even in the darkest moment in bilateral ties last year. Cooperation between Rio Tinto and its Chinese counterpart has also gained momentum. All this indicates that trade ties are sound.

On the other hand, some in the international arena have interpreted the Rio Tinto case as a barometer to judge China's investment environment. This is a misjudgment.

The majority of overseas companies doing business in China respects the country's laws and has brought their activities in line with the law. However, the case does serve as a timely reminder that all foreign companies that are doing business in China should abide by the laws and regulations of the country. An effective legal system will guarantee that all business transactions are done within the legal framework.

(China Daily 03/30/2010 page8)