{"id":25095,"date":"2023-01-19T13:16:17","date_gmt":"2023-01-19T13:16:17","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/?p=25095"},"modified":"2023-01-19T12:56:23","modified_gmt":"2023-01-19T12:56:23","slug":"industrial-espionage-how-china-sneaks-out-americas-technology-secrets","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets","title":{"rendered":"Industrial espionage: How China sneaks out America\u2019s technology secrets"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span>It was an innocuous-looking photograph that turned out to be the downfall of Zheng Xiaoqing, a former employee with energy conglomerate General Electric Power.<\/p>\n

According to a Department of Justice (DOJ) indictment, the US citizen hid confidential files stolen from his employers in the binary code of a digital photograph of a sunset, which Mr Zheng then mailed to himself.<\/p>\n

It was a technique called steganography, a means of hiding a data file within the code of another data file. Mr Zheng utilised it on multiple occasions to take sensitive files from GE.<\/p>\n

GE is a multinational conglomerate known for its work in the healthcare, energy and aerospace sectors, making everything from refrigerators to aircraft engines.<\/p>\n

The information Zheng stole was related to the design and manufacture of gas and steam turbines, including turbine blades and turbine seals. Considered to be worth millions, it was sent to his accomplice in China.<\/p>\n

It would ultimately benefit the Chinese government, as well as China-based companies and universities. Zheng was sentenced to two years in prison earlier this month. It is the latest in a series of similar cases prosecuted by US authorities.<\/p>\n

In November Chinese national Xu Yanjun, said to be a career spy, was sentenced to 20 years in prison for plotting to steal trade secrets from several US aviation and aerospace companies \u2013 including GE.<\/p>\n

It is part of a broader struggle as China strives to gain technological knowhow to power its economy and its challenge to the geopolitical order, while the US does its best to prevent a serious competitor to American power from emerging.<\/p>\n

The theft of trade secrets is attractive because it allows countries to \u201cleapfrog up global value chains relatively quickly \u2013 and without the costs, both in terms of time and money, of relying completely on indigenous capabilities\u201d, Nick Marro of the Economist Intelligence Unit told the BBC.<\/p>\n

Last July FBI director Christopher Wray told a gathering of business leaders and academics in London that China aimed to \u201cransack\u201d the intellectual property of Western companies so it can speed up its own industrial development and eventually dominate key industries.<\/p>\n

He warned that it was snooping on companies everywhere \u201cfrom big cities to small towns \u2013 from Fortune 100s to start-ups, folks that focus on everything from aviation, to AI, to pharma\u201d.<\/p>\n

At the time, China\u2019s then foreign ministry spokesman Zhao Lijian said Mr Wray was \u201csmearing China\u201d and had a \u201cCold War mentality\u201d. \u2018China seeks to topple our status\u2019<\/p>\n

In the DOJ statement on Zheng, the FBI\u2019s Alan Kohler Jr said China was targeting \u201cAmerican ingenuity\u201d and seeking to \u201ctopple our status\u201d as global leader.<\/p>\n

Zheng was an engineer specialising in turbine sealing technology and worked on various leakage containment technologies in steam turbine engineering. Such seals optimise turbine performance \u201cwhether by increasing power or efficiency or extending the usable life of the engine\u201d, the DOJ said.<\/p>\n

Gas turbines that power aircraft are central to the development of China\u2019s aviation industry. Aerospace and aviation equipment are among 10 sectors that the Chinese authorities are targeting for rapid development to reduce the country\u2019s dependence on foreign technology and eventually surpass it.<\/p>\n

But Chinese industrial espionage is targeting a wide range of other sectors too. According to Ray Wang, founder and CEO of Silicon Valley-based consultancy Constellation Research, they include pharmaceutical development and nanotechnology \u2013 engineering and technology conducted at the nanoscale for use in areas such as medicine, textiles and fabrics and automobiles.<\/p>\n

A nanometre is a billionth of a meter. It also includes pharmaceuticals, bioengineering \u2013 mimicking biological processes for purposes such as the development of biocompatible prostheses and regenerative tissue growth.<\/p>\n

Mr Wang cited an anecdote by a former head of research and development for a Fortune 100 company, who told him that \u201cthe person he entrusted the most\u201d \u2013 someone so close that their children grew up together \u2013 was eventually found to be on the payroll of the Chinese Communist Party.<\/p>\n

\u201cHe kindly explained to me that the spies are everywhere,\u201d he said. In the past industrial espionage from countries such as Japan, South Korea, Taiwan and Singapore was a concern, Mr Marro said.<\/p>\n

However once indigenous firms emerge as innovative market leaders in their own right \u2013 and so start to want to protect their own intellectual property \u2013 then their governments start passing legislation to take the issue more seriously.<\/p>\n

\u201cAs Chinese firms have become more innovative over the past decade, we\u2019ve seen a marked strengthening of domestic intellectual property rights protection in tandem,\u201d Mr Marro said.<\/p>\n

China has also gained expertise by making foreign companies hand over technology under joint venture agreements in exchange for access to the Chinese market.<\/p>\n

Despite complaints the Chinese government has always denied accusations of coercion. Hacking deal a \u2018joke\u2019 There have been attempts to rein in hacking specifically.<\/p>\n

In 2015 the US and China struck a deal in which both sides pledged not to carry out \u201ccyber-enabled theft of intellectual property, including trade secrets or other confidential business information for commercial advantage\u201d.<\/p>\n

By the following year, the US National Security Agency had accused the Chinese of violating the agreement, although it did acknowledge that the quantity of attempts to hack government and corporate data had dropped \u201cdramatically\u201d.<\/p>\n

But observers say the deal\u2019s overall impact has been minimal. Mr Wang said it was a \u201cjoke\u201d due to a lack of enforcement. Chinese cyber-espionage in the US has been \u201cpervasive\u201d and extends to academic labs.<\/p>\n

\u201cIt has been going on in every aspect of Western businesses,\u201d he told the BBC.<\/p>\n

However Lim Tai Wei from the National University of Singapore noted that there were no \u201cdefinitive uncontested studies\u201d on the extent of the phenomenon.<\/p>\n

\u201cSome believe that there was a short dip in Chinese cyber espionage against the US, but resumed its former level thereafter. Others believe it failed due to the overall breakdown in US-China relations,\u201d he said.<\/p>\n

Meanwhile the US is now directly trying to block China\u2019s progress in the key semiconductor industry \u2013 vital for everything from smartphones to weapons of war \u2013 saying China\u2019s use of the technology poses a national security threat.<\/p>\n

In October, Washington announced some of the broadest export controls yet, requiring licences for companies exporting chips to China using US tools or software, no matter where they are made in the world.<\/p>\n

Washington\u2019s measures also prevent US citizens and green card holders from working for certain Chinese chip companies. Green card holders are US permanent residents who have the right to work in the country.<\/p>\n

The US is beating China in the battle for chips Mr Marro says that while these measures will slow China\u2019s technological advance, they will also accelerate China\u2019s efforts to remove US and other foreign products from its tech supply chains.<\/p>\n

\u201cChina has been trying to do this for years, with muted success, but these policy goals now command greater urgency as a result of the recent US controls,\u201d he said.<\/p>\n

With China also invoking its own national security, the scramble for a technological edge between the world\u2019s two biggest economies is only likely to intensify further.<\/p>\n

But Mr Wang reckons that the US still holds the advantage. \u201cMy cyber-security friends tell me when they hack Chinese sites, the only worthwhile tech [they can find there] is US intellectual property,\u201d he said.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. It was an innocuous-looking photograph that turned out to be the downfall of Zheng Xiaoqing, a former employee with energy conglomerate General Electric Power. According to a Department of Justice (DOJ) indictment, the US citizen hid confidential files stolen from his employers in the binary code of a digital photograph of a […]<\/p>\n","protected":false},"author":84,"featured_media":25094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[233,245,2050,241],"class_list":["post-25095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-mauritius","tag-electric","tag-mauritius"],"yoast_head":"\nIndustrial espionage: How China sneaks out America\u2019s technology secrets - Mauritius<\/title>\n<meta name=\"description\" content=\"It was an innocuous-looking photograph that turned out to be the downfall of Zheng Xiaoqing, a former employee with ener ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Industrial espionage: How China sneaks out America\u2019s technology secrets\" \/>\n<meta property=\"og:description\" content=\"It was an innocuous-looking photograph that turned out to be the downfall of Zheng Xiaoqing, a former employee with ener ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\" \/>\n<meta property=\"og:site_name\" content=\"Mauritius\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-19T13:16:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postQueueImg_1674120067.39.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"976\" \/>\n\t<meta property=\"og:image:height\" content=\"549\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Industrial espionage: How China sneaks out America\u2019s technology secrets\",\"datePublished\":\"2023-01-19T13:16:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\"},\"wordCount\":1238,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postQueueImg_1674120067.39.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mauritius\",\"Electric\",\"Mauritius\"],\"articleSection\":[\"all news\",\"miscellaneous\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\",\"url\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/industrial-espionage-how-china-sneaks-out-americas-technology-secrets\",\"name\":\"Industrial espionage: How China sneaks out America\u2019s technology secrets - 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