Rio Tinto case is reminder to keep watchful eye

In addition to tightening internal control policies, international companies need to be aware of which of their Chinese executives are most exposed to corruption and likely to bring risk to the company.

    On March 29 2010, the Shanghai No. 1 Intermediate People's Court handed down its verdict to four defendants in the Rio Tinto corruption case. All were found guilty on charges of bribery and stealing commercial secrets, and sentenced to jail terms ranging from seven to 14 years.

    The trial was closely watched by the international business community in China, viewing its proceedings and outcome as a barometer for how the PRC courts would handle foreign firms. Some Australian officials deemed the sentences overly harsh, but the Chinese government maintained the punishment was in line with the seriousness of the crime.