My first reaction when I read the report last week that China had detained 4 Rio Tinto executives was to ask the question ‘What Constitutes a State Secret in China?”  A July 13 article titled ‘What is a ‘state secret’? China metals analysts increasingly nervous’ focuses on this and says “Following the arrest of the Rio Tinto Four for ‘stealing state secrets’, China’s metals analysts are increasingly nervous on what the state considers secret information”, and “China’s detention of steel executives suspected of leaking state secrets could reduce the flow of market information in China as analysts and researchers self-censor to avoid trouble”.

When I commented last week I focused on concern that executives doing business in China might be less interested in visiting China than they otherwise would be, absent clear and unequivocal rules as to how China defines ‘state secrets’.  That analysts and researchers might similarly be affected did not occur to me until now.  Again, to me this suggests a need for early resolution by China of the specific Rio Tinto issue – but more importantly early enunciation by China of exactly what it means by ‘state secrets’ in order for China/Rest of World business relations to go forward without a specter hanging over them.  In my view, the referenced article is one worth reading.

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