Miscommunication in Australia-China relations: the Stern Hu Affair

This paper explores communication and miscommunication in international business relations by studying the case of former RIO Tinto executive Stern Hu who was prosecuted for stealing trade secrets and taking bribes in kickbacks from Chinese steel firms. Using newspaper articles about the case that were published in Australia, China and other countries via Internet in either Chinese or English from July 2009 to April 2010, a series of differences in the way the Chinese and Australian protagonists were framed both in terms of relevant facts and value judgments. Apart from various obvious stereotypes, more subtle differences in the perspectives of the two nations emerge in my reading of their presses regarding the nature of trust, the role of corporations, government and how morality and business intermesh in two culturally distinct systems. Using this case, this paper illustrates the nature and types of misunderstandings that emerge over time and across locations within each cultural setting.