China allays fears over Rio Tinto case

(BEIJING) - China sought to ease worries Thursday over the arrest of an Australian mining executive after a European business group said firms were concerned their employees could unwittingly face similar probes.

"The Chinese government is dealing with the case according to law to... create a sound and fair commercial environment which is in the long-term interest of foreign companies in China," foreign ministry spokeswoman Jiang Yu told reporters.

The European Union Chamber of Commerce in China on Wednesday called on Beijing to better define its "national interests" following the arrest of Rio Tinto employee Stern Hu, an Australian passport-holder.

Hu and three Chinese colleagues were detained in Shanghai in July. The group has now been formally arrested and stands accused of industrial espionage and bribery during fraught iron ore negotiations.

Chamber president Joerg Wuttke said European businessmen had concerns they could unwittingly fall afoul of the Beijing authorities simply by not understanding Chinese law.

"It would be helpful to get a more candid definition of what 'national interest' is," he said.

He added he had not heard of a "single case" of a European firm reconsidering its China presence following Hu's arrest.