Australia-China and Stern Hu : a dint in relations or business as usual?

China’s economic growth over the last decade has been spectacular and Australia has been a beneficiary of this growth in terms of China’s demand for resources and the strength of Chinese exports. Pundits even suggest that Australia avoided the global recession as a result of this strong trade relationship. Trade relations between Australia and China resulted in China becoming Australia’s key trading partner. The arrest and charging in 2009/10 of four Rio Tinto executives (including Stern Hu the head of Rio’s operation in China) based in China raised fears of posing a strain on this vital economic relationship. Moreover China’s inability to takeover Rio Tinto and the significance and consequences of this incident are at the core of this paper. How do these events reflect the uncertainties of doing business in China or do these events demonstrate China’s sovereign right to enforce anti-corruption legislation? While China has embraced the international business community, to what extent has the arrest and imprisonment of Stern Hu changed the Australian-China trade
relations including doing business in this thriving and buoyant market?

Miscommunication in Australia-China relations: the Stern Hu Affair

This paper explores communication and miscommunication in international business relations by studying the case of former RIO Tinto executive Stern Hu who was prosecuted for stealing trade secrets and taking bribes in kickbacks from Chinese steel firms. Using newspaper articles about the case that were published in Australia, China and other countries via Internet in either Chinese or English from July 2009 to April 2010, a series of differences in the way the Chinese and Australian protagonists were framed both in terms of relevant facts and value judgments. Apart from various obvious stereotypes, more subtle differences in the perspectives of the two nations emerge in my reading of their presses regarding the nature of trust, the role of corporations, government and how morality and business intermesh in two culturally distinct systems. Using this case, this paper illustrates the nature and types of misunderstandings that emerge over time and across locations within each cultural setting.