China Charges Rio Tinto (RTP) Employees With Spying

China arrested four executives of Rio Tinto Ltd. (NYSE: RTP) on suspicion of stealing commercial secrets, but didn't charge them with the more serious espionage accusations in a move that Rio Tinto said demonstrated that its employees had done nothing wrong, according to the WSJ.

"The charges have been downgraded, and I think that reflects what we've been saying all along, that we don't believe there's any evidence of wrongdoing," Rio Tinto's CEO, Sam Walsh, told reporters Wednesday.

China prosecutors approved the formal arrest of the four on suspicion of using improper means to obtain commercial secrets about China's steel enterprises and commercial bribery.

Rio Tinto's said that its understanding is that no formal charges have been laid but an arrest warrant has been issued that allows authorities to hold the employees in custody during further investigations.

"Rio Tinto will strongly support its employees in defending these allegations. From all the information available to us, we continue to believe that our employees have acted properly and ethically in their business dealings in China," according to Walsh.

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