"Premier Hu Jintao understands how important that is. He obviously thinks it's far more important than whether or not China antagonises Australia or other Western countries and their companies. Lose, lose, lose."
I have being involved in the China trade in Steel making a few years ago. I strongly disagree with the statement above that appeared in the Australian. In the past it was more a case of BHP & RIO antagonising the Chinese. Australia back then has a near strangle hold over China's source of iron ore and coking coal.
I was involved in negotiations and we were told back then to watchout. Australia may have the superior bargaining position then but watchout....."you are not the only ones with iron ore & coal, there are plenty of comparable quality from Latin America, just wait until they catch up with their infra structure and capable of exporting large quantities...."
Now, years latter, how true was that statement. We now have a major competitor from Brazil - Vale. And as more and more Companies come on-line our position is getting weaker all the time. This applies not only to iron ore but also to coking coal.
IMO we should not take the Malcolm Turnbull approach and behave like a bull in a China shop. I say let the diplomats sort this out. Personally, I think this is just a show of strength by the Chinese. Hopefully it will all be sorted out without damaging the relationship. They need our resources and we need their money.
Most major companies in China employ security firms to regularly sweep their premises for bugs and listening devices. Nowadays they are so advance they do not have to plant them in the premises. They can bug conversations from across the street. Apparantly, some devices can pick up conversations from the vibrations on the window glass.
Here is a real story....many years ago a Western country (which shall remain unnamed) was building a new embassy. The Chinese as "a token of friendship" offered to build the embassy for them as a "gift". It was considered very rude to refuse so the Western country had to agree. After the embassy was finished they had their own people sweep the building for spying bugs.
Lo and behold, surprise, surprise the building was found to be "insecure". The major problem was they can't complain to the Chinese and risk a major fallout. The final solution was the Western Country set fire to the entire building and burnt it down and blamed it on an electrical fault. They then approached the Chinese and asked them to "gift" another new building. This was firmly refused, "you careless foreigners" are getting too damn expensive. Hahahaha......that is diplomacy at it's very best.