China still grasping on Rio Tinto

ARTICLE: China Broadens Steel Inquiry Beyond Rio Tinto, By DAVID BARBOZA, New York Times, July 13, 2009

The development:

The investigation, which began with accusations that the four Rio Tinto workers had conspired to steal state secrets, has rapidly widened, according to accounts on government Web sites and in Chinese news media. It now includes accusations of widespread bribery in business dealings, as well as allegations that the four workers paid for detailed government trade and manufacturing data to give Rio Tinto executives an edge in iron ore negotiations with Chinese state-controlled steelmakers.

Bit more defensible, but it still comes off as frighteningly heavy-handed and deliberately punitive. Beijing better wise up on this pronto.