The trial of four employees of the Anglo-Australian mining company Rio Tinto has begun in the Chinese city of Shanghai.

The four were arrested in July 2009 during negotiations, which later collapsed, about iron ore contracts. They are accused of bribery and industrial espionage. If found guilty, they could receive prison sentences of up to 20 years. Three of the accused are Chinese. The fourth holds an Australian passport.
 
The affair has led to increased tensions between Australia and China. Despite a request by the Australian government for transparent proceedings, the trial has been closed to foreign reporters.
 
The trial is widely being seen as a test of whether China is willing to honour commitments to foreign investors. Australian Prime Minister Kevin Rudd has told China the world will be watching "very closely".

In spite of the trial, last week Rio Tinto announced a deal with Chinese company Chinalco to build a huge mine in Guinea.