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Anglo-Australian mining giant Rio Tinto Group issued its strongest reaction yesterday to the detention of four mainland-based employees on spying charges earlier this month.
Analysts said, however, that the protest would do little to help resolve the escalating row and might even backfire on the miner.
Some mainland steel industry executives are also wary of dealing with the group, one of China's largest iron ore suppliers, out of concern about potential risks, although Rio said it was maintaining high levels of shipments to the country.
'Rio believes that the allegations in recent media reports that employees were involved in bribery of officials at Chinese steel mills are wholly without foundation,' Sam Walsh, the chief executive of the group's iron ore business, said in a statement.
'We remain fully supportive of our detained employees and believe that they acted at all times with integrity and in accordance with Rio's strict and publicly stated code of ethical behaviour.'
Four of Rio's Shanghai-based employees, including Stern Hu, a Chinese-born Australian citizen and the firm's chief iron ore salesman on the mainland, were detained by the Shanghai branch of the Ministry of State Security on July 5.
Rio's statement effectively turned the spotlight back on to allegations by the foreign and the security ministries.
Beijing alleges that Mr Hu and his colleagues bribed steel industry executives for key information that would give Rio an edge in its talks with mainland steelmakers over the pricing of long-term iron ore supply.
'It risks pushing the Chinese into the corner,' said Ian Stones, the owner of  Beijing-based Fast China Consultants. 'It seems, in compiling this statement, apparently they mainly sought consultation from lawyers instead of public relations experts with China know-how.'
David Goodman, a professor of Chinese politics at the University of Sydney, said: 'I don't think it would make any difference. But it's quite reasonable for an employer to make that kind of statement to stand by their employees. It's good. There are things much worse than that [in terms of resolving the dispute], like the grandstanding and drum-beating by the Australian opposition.'
Tony Ng, a principal consultant with Shanghai Easy Accord Investment Consultants, said it boiled down to rhetoric and posturing. 
'But  at the end of the day, this kind of row would be resolved by pragmatic horse trading under the table,' he said.
Low-key and diplomatic efforts do not guarantee quick results for foreign  governments whose citizens are charged with crimes on the mainland. James Peng, a Chinese-born Australian businessman, was detained in 1993 by mainland authorities and later sentenced to 18 years in prison on fraud charges, which were later overruled. He was not released until 1999 despite years of low-profile diplomatic representations from Australia.
Mr Hu's fate is still up in the air, but Rio is already suffering fallout from the dispute. An executive from a steel mill said his mill had temporarily stopped buying iron ore from Rio because of the spat.
'Iron ore prices in the market offered by suppliers are almost the same. Why should I buy iron ore from Rio if it may bring me headaches?' the executive said, emphasising that it was just a temporary move.
Another steel industry analyst in Shanghai said several steel mill managers had expressed similar concerns to him.
However, Rio's statement also emphasised that it was 'maintaining high levels of iron ore shipments' from Australia despite the dispute.
Analysts said Rio had to tread carefully.
'As the incident involves state and national interests, if Rio does not manage the matter correctly and smoothly, its business in the mainland may be affected,' said Cao Xuefeng, a vice-general manager at steel consultancy Beijing Custeel E-Commerce.



No basis for spy charges, says Rio