Rudd should rethink AustChina’s friendship

Kevin Rudd might wish to reconsider his friendship with Chinese businessman Ian Tang in the face of growing evidence that Tang’s company Beijing AustChina has a rather dubious approach to business ethics.

Despite weeks of publicity, we still aren’t much clearer on precisely what Ian Tang and Beijing AustChina do. The Prime Minister himself has admitted he’s not “really across what Tang does.” AustChina claims to act as a distributor for Australian communications companies in China but, as we will see in a moment, their track record is rather patchy. Its local representation is a $1 company with a house in the Sydney suburb of Warriewood, where the phones only go through to a fax machine.

More seriously, a number of companies identified on Beijing AustChina’s website as “Strategic Partners” have either never heard of AustChina or have severed all ties with them years ago and have no current business relationship with them. Sydney company Integrated Research says it has been a partner with AustChina for 6 years. However, of the remainder of AustChina’s “strategic partners”:

  • Radio Frequency Systems: say they severed ties with AustChina in 2005 for “failing to meet milestones”.
  • Q-Mac: had never heard of Beijing AustChina until this week.
  • Future Fibre Technologies: severed ties with AustChina several years ago.
  • CSIRO: have advised that, while it is not aware of any relationship, it is checking its files to confirm.
  • LongReach: refused to comment, but Crikey’s own efforts have revealed no evidence of any relationship between them.

AustChina appears to have a highly imaginative approach to its business connections. One former customer described them as “MBAs – Master Bullsh*t Artists”. In response to queries about why it is claiming these links, AustChina says that it is “in discussions with a number of local suppliers regarding opportunities to export Australian products to China.”

AustChina will indeed be in discussions with at least one of these firms – it has asked its lawyers to write to Ian Tang to demand that reference to its purported ties be removed.

And then there is the question of AustChina’s and Ian Tang’s links with the Chinese Government. There are suggestions that Tang is closely associated with Beijing. Given that he claims to be a supplier of, inter alia, military communications equipment, it is unlikely he is not in some way linked to the Chinese military.

You don’t have to go too far up the grassy knoll to start wondering if AustChina is a front for other activities.


10 Comments

  1. Steve
    Posted Thursday, 20 March 2008 at 3:45 pm | Permalink

    This piece is a load of crap, Bernard. It’s all speculation. Businesses “sever ties” for all sorts of reasons. The “links with miltary” line is tired. Cold, hard evidence should be the norm before you go to print. This is not what I read Crikey for.

  2. Patricia Weston
    Posted Tuesday, 25 March 2008 at 2:22 am | Permalink

    Much more of this wandering up the grassy knoll by Bernard Keane and I shall be re-thinking my own relationship with Crikey. Lots of “questions” and surmising but no facts. Great example of how to make a story out of innuendo.

  3. Peggy Balfour
    Posted Thursday, 20 March 2008 at 5:20 pm | Permalink

    Easy to look up their website. Pics of John Howard and others there.
    I have figured our what they do. They manufacture secret communication technology. like ‘Get Smart” brand cones of silence. Have one built in your office so no one can bug you.

  4. Dave Liberts
    Posted Thursday, 20 March 2008 at 3:13 pm | Permalink

    As long as private/corporate donations to parties exist, increased attention or other favours will be expected. Howard sent this whole area backwards. Rudd declared everything and played by Howard’s rules. Public political funding is the only safe option.

  5. Mmm
    Posted Thursday, 20 March 2008 at 2:38 pm | Permalink

    ’ Hong Kong Govt’ (again an arm of Beijing central CP govt) has been advertising on Fairfax my career in Feb 08 jobsite for a policy analyst with Chinese language to report on ‘business and political developments in Australia’. Huh? Is that like ASIO ads?

  6. David
    Posted Thursday, 20 March 2008 at 3:32 pm | Permalink

    Question time today revealed former Howard Ministers had been in contact with the China Co and Tang since 2002. BUT this morning on the ABC the Opposition pusher of the “dirt” denied knowledge of the Co or Tang before the election a deliberate lie Mr Robb

  7. Mmm#2
    Posted Thursday, 20 March 2008 at 2:46 pm | Permalink

    Treasurer Swan recently denied (as Nelson asks in Parlt right now of the PM) p1 The Oz 19/3/08 there were any guidelines to block investment by any one country, while ‘massive expansion of Chinese mining interests is happening here’. Talk about soft power

  8. Andrew
    Posted Thursday, 20 March 2008 at 2:35 pm | Permalink

    Don’t blame, I didn’t vote for him. Perhaps if people had asked questions we would have know a bit more about the man who wanted to be PM. We could have questioned China, the expelling of several union officials and the brutality over his wife’s buisness.

  9. Stephen
    Posted Thursday, 20 March 2008 at 3:00 pm | Permalink

    I have been sending email to Kevin Rudd for several weeks and have yet to receive a single reply. But Ian Tang can speak to him at any time. It shows that access to our politicians can be bought, by anyone. I just wonder what else can also be bought.

  10. Mmm#3
    Posted Thursday, 20 March 2008 at 2:51 pm | Permalink

    Swanny says its dependent on ‘national interest’. But that didn’t stop China Inc preying on Metal Storm super machine gun, as reported on Ch9 Sunday 2 years back. It’s one thing losing cutting edge solar to China Inc via their own expatriate. Caution!