On July 5, Stern Hu, an Australian citizen who headed Rio Tinto's iron ore marketing team in China, was detained by the Chinese authorities along with three Chinese nationals also employed by the diamond mining company on suspicion of stealing state secrets.

The Chinese authorities formally arrested the suspects in August on a lesser charge of stealing commercial secrets.

China’s Ambassador to Australia Zhang Junsai said yesterday that Stern Hu’s detention was a one-time, isolated incident. The Ambassador stated: "It will not affect the relationship between China and Australia. According to Chinese law, he has committed some crimes. It has nothing to do with the Australian government, this is an isolated legal case.”

In a speech presented earlier to the Australia-China Investment Forum, Ambassador Zhang Junsai said that relations between China and Australia remain strong and that two-way trade and investment are essential for the ties to continue gaining momentum.

He added: "Trade and investments have strengthened the link and trust between our two countries and our two peoples. I suggest we step up cooperation in emerging industries like climate change, green energy and saving energy."

The Ambassador reiterated that trade relations between both countries need to be conducted on a long-term, strategic basis, which should not be put off by short-term obstacles.