Smith admitted the trial of Stern Hu, the former head of the Anglo-Australian miner's Shanghai office who was jailed for 10 years for bribery and stealing trade secrets, had caused friction between the two sides.

"The relationship is in very good shape. Yes, in recent times we have had differences over the Stern Hu matter, but the strength of the relationship continues," Smith told reporters in Shanghai.

He was speaking after the official inauguration of Australia's pavilion at the World Expo, which he said aimed to bolster trade and investment and strengthen ties with China.

Rio Tinto is one of the main sponsors of Australia's exhibit, which has attracted more than 500,000 visitors since it opened on May 1.

China is the world's largest importer of iron ore and Chinese steel mills are key customers for Rio.

Smith said the rejection on Monday of the appeals of Hu's three Chinese colleagues -- Hu chose not to appeal -- had brought the process to a conclusion and Hu would soon be transferred to a Shanghai jail for convicted foreigners.

"We will continue to provide him with support and assistance as we have been from day one," Smith said.

In March, Australia slammed the "very tough" bribery sentence handed to Hu and said there were "serious unanswered questions" about the industrial espionage segment of the trial, which took place behind closed doors.

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