China denies spies targeted Australia PM and Rio Tinto

By Rob Taylor

CANBERRA (Reuters) - China denied on Friday that its spies attempted to hack into the phone and computer of Australian Prime Minister Kevin Rudd during a visit to Beijing, amid growing unease in Canberra over Chinese investment.

The Australian newspaper said on Friday China directly targeted Rudd during a visit to China last August. It said Rudd and his staff were under constant cyber attack from authorities trying to access communications gear.

"It is a totally groundless saying and not worth any comment, this so-called cyber spying," Chinese embassy spokesman Jin Liu told Reuters.

The newspaper, citing intelligence sources, said Beijing's blatant electronic espionage had alarmed Rudd's centre-left government and led to a tightening of communications security for senior government figures travelling to China.

Rudd, speaking in London after the G20 meeting of leading economies, said had not been advised of a specific attack, but the government was wary of cyber espionage.

"The (December) national security statement clearly identified the threat of cyber attacks," Rudd told reporters.

A defence planning paper due out later this month is expected to deal with cyber espionage, following concerns raised by former diplomat Rudd last year.

Anti-Chinese sentiment has been building in Australia with opposition lawmakers accusing the Mandarin-speaking prime minister of being a "roving ambassador" for China and too close to senior figures in Beijing.