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How to Deal with Corruption in China

The Rio Tinto case is not really about any sort of "corruption." It is about putting pressure on Rio (and BHP and Vale) in contract negotiations over the ore price. It is more akin to the PRC government allowing Chinese firms to break derivatives hedging contracts with foreign banks. In other words it is the PRC government violating the customary business practice because it can. But in the long run that is going to cost the PRC as it increases the risks of doing business with PRC based entities. So, the Rio case is not really a good example for the point the author want to make here.