China defends handling of Rio case

Beijing - China confirmed on Tuesday that an espionage probe into an Australian executive with mining giant Rio Tinto was complete and defended its handling of the case, which has strained ties with Canberra.

"Shanghai police have completed their investigation into the Rio Tinto case and the case has been turned over to Shanghai prosecutors," said foreign ministry spokeswoman Jiang Yu.

However, Jiang declined to comment on whether Australian passport-holder Stern Hu and three Chinese colleagues would eventually face trial.

The four were arrested in July and initially accused of stealing state secrets. The allegations were later watered down to industrial espionage, centring on alleged bribery during talks over iron ore contracts.

"The case has all along been handled according to relevant Chinese laws, legal processes and China-Australia consular agreements. I believe this case will result in a lawful and just outcome," Jiang added.

The spokesperson said it was up to prosecutors in Shanghai to decide whether and when to bring the case to trial.

Australia said on Monday that it had been notified by China that the case had been turned over to prosecutors.

Hu's arrest soured diplomatic relations with Australia and raised questions about business deals with rapidly industrialising China, the world's biggest iron ore consumer.

It came just weeks after Rio Tinto snubbed a massive cash injection from a Chinese state firm, and coincided with annual iron ore contract talks. The tense negotiations later collapsed.

- AFP