Australian Prime Minister Kevin Rudd has warned that China has big economic interests at stake in the case of a mining executive accused of spying.

He said the matter was being watched closely from abroad.

Mr Rudd has been under pressure at home to be more assertive with China, to better protect the detained Australian citizen, Stern Hu.

China says it has evidence of spying, bribery and theft of state secrets in a widening probe of the steel industry.

"Australia of course has significant economic interests in its relationship with China, but I also want to remind our Chinese friends that China too has significant economic interests at stake in its relationship with Australia and with its other commercial partners around the world," Mr Rudd told a press conference.

"A range of foreign governments and corporations will be watching this case with interest and be watching it very closely, and will be drawing their own conclusions as to how it is conducted," he said.

Domestic pressure

He told Australian media that his government had made a total of 20 representations to China since Mr Hu’s arrest in Shanghai on 5 July, adding the government was deploying "all levels of consular and diplomatic representations in support of Mr. Hu’s interests."

It was a "massively complex" case to work through, he said.

"We pursue a broad-based relationship with the Chinese, one where we will pursue all of our interests simultaneously," he said.

"When it comes to prosecuting the interests and supporting the well-being of individual Australians abroad that will be done with full vigour … without compromise to the interests of a single Australian," he said.

Daily press commentaries and Australia’s opposition have criticised Mr Rudd for failing to stand up for Australian interests.

They have used his known skills in Chinese language and diplomacy against him, saying it has made him subservient to Chinese power.

The Shanghai-based staff of the Anglo-American mining firm Rio Tinto, including Australian Stern Hu, Rio’s top iron ore salesman there, are accused of stealing state secrets from Chinese steel mills.

China has widened its investigation into the industry’s workings by investigating executives at Chinese state-owned steel firms in recent days.

China is Australia’s biggest trade partner.

Reports suggest the spying case is complicating difficult talks between China and iron ore suppliers around the world.</p

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