hu goes there.
so.. its not totally clear what happened to stern hu. he was found guilty of something and sentenced in a shang hai court . it is clear that it has something to do with the price of iron ore which is at an all time high (140 a tonne or something.)
the fact is at this (high) level of business involvement---billions of dollars and the supply of vital raw materials to china--- the distinction between what is criminal and what is sound business is not so clear....
it would be as big a mistake to condemn the chinese justice system as to affirm the innocence of rio tinto, bhp or any player in this market. it is a poker game. the clenliness of players' skins is not really what its about.
oligopsony .. (isnt a pretty word in any language.)
the chinese will learn that the way to keep the price down is to get hold of the mine. sooner or later. one way or another. but if they think they will be let in on their terms alone, theyre dreaming.
thats my reading of it at least.
australians are fools to sell off unprocessed raw materials. it is what has caused the environmental catastrophy that the good earth has suffered. its not stern hu who needs to be made an example of in particular.. he is but a fall guy. its written all over the contract.
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