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US Levels Espionage Charges Against 6 Chinese Nationals

Taco Cowboy writes: The U.S. government has indicted five Chinese citizens and arrested a Chinese professor on charges of economic espionage. The government alleges that they took jobs at two small, American chipmakers — Avago Technologies and Skyworks Solutions — in order to steal microelectronics designs. "All of them worked, the indictment contends, to steal trade secrets for a type of chip popularly known as a “filter” that is used for acoustics in mobile telephones, among other purposes. They took the technology back to Tianjin University, created a joint venture company with the university to produce the chips, and soon were selling them to both the Chinese military and to commercial customers."

It's interesting to note that the Reuters article keeps mentioning how this technology — used commonly as an acoustic filter — has "military applications." It's also interesting to look at another recent case involving Shirrey Chen, a hydrologist who was mysteriously arrested on suspicion of espionage, but then abruptly cleared five months later. One can't help but wonder what's driving the U.S.'s new strategy for tackling economic espionage.

60 of 100 comments (clear)

  1. Change of tactics? by fey000 · · Score: 1

    Perhaps they've studied the SEC, and are now realising that a shakedown racket pays far better than justice?

  2. SubjectsInCommentsAreStupid by lesincompetent · · Score: 1, Insightful

    Yes but what about when it's the US that pulls this kind of espionage? Oh right, they're the good guys.

    1. Re:SubjectsInCommentsAreStupid by AmiMoJo · · Score: 1

      That's the point of making noise about these arrests. Distract people from what the US is doing, maybe drum up some support for it because after all everyone else is doing it... Make China look like the big bad, to justify offensive hacking.

      --
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    2. Re:SubjectsInCommentsAreStupid by dunkelfalke · · Score: 1
      --
      "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
    3. Re:SubjectsInCommentsAreStupid by king+neckbeard · · Score: 1

      Actually the US government does very little to no industrial espionage

      You should do stand-up

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      This is my signature. There are many like it, but this one is mine.
    4. Re:SubjectsInCommentsAreStupid by GroeFaZ · · Score: 1

      It could be argued that the NSA-BND cooperation was a case of outsourcing the espionage activities, so the US really did not do any espionage here, just like the US outsource their manufacturing. The fact that they made the BND spy on their own country's companies is just a little ironic icing on that shit cake.

      --
      The grass is always greener on the other side of the light cone.
  3. Using the same logic by Anonymous Coward · · Score: 1

    Using the same logic Wernher von Braun should have been arrested, charged and sentences for espionage when he learn rocket making secrets, financed by one type of government, and soon was contributing to the manufacturing of rocket devices in USA.

    You know, rocket devices have huge economic potential, as well as potential military applications.

    You can bet that Germany can present enough evidence and collect serious royalties for USA, including late fees, for all the benefits and gains attributable to von Braun's inventions.

    1. Re:Using the same logic by gl4ss · · Score: 1

      I'm pretty sure Von Braun never visited nazi germany again after leaving it(would have been pretty hard to do).

      anyways, it's probably some feedback filter. and military applications? yeah, they use walkie talkies.

      totally ground breaking tech only available from the few small companies? veery fucking unlikely. doubt they even had decent patent protection.

      --
      world was created 5 seconds before this post as it is.
    2. Re:Using the same logic by gl4ss · · Score: 1

      it wouldn't be a trade secret if it was on a patent.

      it's quite likely that in this case there wasn't that much of secrets anyways, that weren't "common industry knowledge" that they just happened to learn in these two companies.

      --
      world was created 5 seconds before this post as it is.
    3. Re: Using the same logic by WindBourne · · Score: 1

      Oddly, the Germans learned how to do liquid rockets from Goddard, an american. And most of that was stolen.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  4. "Theft" of trade secrets? Huh? by bradley13 · · Score: 4, Interesting

    Back when I learned about this stuff, companies basically had two options to protect their technology: patents and trade secrets.

    - If you file for a patent, the theory is that you tell the whole world how it works, but get the exclusive right to produce it yourself, or license it to others. Yes, the patent system has problems, but that's theory. This is supposed to help technology advance, because you can build on other people's work.

    - If you go with a trade secret (think: the secret recipe for Coca Cola), that means that you don't want to publish the information, so you receive no protection from the government. Protecting the secret is up to you; if someone steals it, that's your problem. This lack of protection is deliberate, providing motivation for filing patents and publishing information.

    What I didn't know is that in 1996, the government passed the Economic Espionage Act. This essentially grants government protection to trade secrets, not only by criminalizing their theft (but that is likely a criminal act anyway), but also by criminalizing the use of the trade secrets by another company.

    Of course, the act also explicitly exempts the government; the government can spy on you as much as it wants.

    The act also funds the Boys and Girls Clubs of America. You've gotta admire the US Congress - they never miss an opportunity to include pork.

    --
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    1. Re:"Theft" of trade secrets? Huh? by C0R1D4N · · Score: 1

      I think the idea is that going in and stealing them is bad (and theft), but you are not protected from people reverse-engineering your trade secret.

  5. Re:Now Germany! by Anonymous Coward · · Score: 2, Informative

    All german parties except of the CDU/CSU (which are "sister parties"), led by the leftists, who were created from the remaining parts of the totalitarian SED that governed the GDR, and, out of this "tradition", have a very anti-US and pro-russia position (nicely observable in the debate about ukraine), agree that this form of espionage is far too much. There has been some critical politicians before too, but now, after two years of snowden, we finally see something really moving inside political berlin. This is largely thanks to the SPD, the other party of the coalition that forms the government, which has positioned itself against espionage inside the last voting season, and, until now, mostly broken their promises in this regard. Now, thanks to them, and the pressure from the press, there is some activity at least.

    In the current debate, it has turned out that the CDU/CSU has lied about a planned anti-spy treaty in order to get votes in the elections. Its seldom that you have it this crystal clear that a politician is lying.
    Also, it became public that, in inter-state cooperations, where german agencies give US agencies data about terrorist suspects, the US side has requested data not just about criminals, but also about diplomats of befriended governments, including the french, which are the best buddies of the germans, and the austrians, close to germans due to history and shared language. Now the BND found out about it, and it came to the press. Now the german government (the leading CDU/CSU part) seriously first wants to ask the US agencies whether it may share those hostile and reputation-hurting requests (only the names!) with a special section of the german bundestag, which has the task to oversee germanie's secret agencies.

    I'm really ashamed of my government here in this case. Germany isn't a colony. Directly after the war, where there was a high comitee of the allies that oversaw german politics and other parts of the state, this might have been understandable, but not 70 years after it.

  6. Re:On behalf of planet earth by Anonymous Coward · · Score: 1

    The topic at hand is industrial espionage. Either point out actual cases of this or STFU.

    Perhaps you have not been paying attention to current events. Oh, it's easy to complain when someone else does it to YOU, isn't it?

  7. Never assume that ALL your Chinese workers are in by mnemotronic · · Score: 1

    Companies really like Chinese engineers. Many are highly degreed, many of those are highly educated, they work hard and they're cheap. Only a few are going to steal IP. If a dedicated Chinese engineer has family back in China there's no way to know what kind of pressure the Chinese govt is going to apply, and, IMHO, it's all about the Chinese govt. Ya pays yer money, ya takes yer chances. I would like to encourage Apple to hire lots of H1Bs from SE Asia.

    --
    The Russians have won. They have made the world a cesspool of distrust, greed, fear and hate.
  8. Re:On behalf of planet earth by cheesybagel · · Score: 1

    There is also the General Electric - Enercon windmill case a couple of years back.

  9. Re:On behalf of planet earth by knightghost · · Score: 4, Insightful

    You didn't read your own linked story. The USA snoops on powers but doesn't hand that over to corporations. OTOH, the Chinese snoops #1 priority is to steal everything nailed down so that they can duplicate it for economic gain. Pretty much complete opposites.

  10. Re:Now Germany! by Richard_at_work · · Score: 2

    I really hope you are being sarcastic or something, and you don't really think that...

    The German airforce has over 200 front line offensive aircraft in its inventory, 109 of them being the Eurofighter.

    The German army has over 230 Leopard 2 main battle tanks, a tank commonly held as one of the best in the world, and over 150 PzH 2000 self propelled guns, again commonly held as one of the best in the world.

    The German navy has 81 commissioned ships in service, 43 of them front line offensive in nature.

    Germany isn't exactly a nation I would want to currently face in battle, not even with a top tier military such as the US, France, UK et al - those military's would almost certainly win any competition, but they wouldn't come out unscathed....

  11. military applications by morgauxo · · Score: 1

    '...article keeps mentioning how this technology â" used commonly as an acoustic filter â" has "military applications."'

    Sure. Soldiers communicate. So do civilians. A soldier has to shit too. I guess if they were stealing the recipee for Charmin that would also be military secrets.

    1. Re:military applications by king+neckbeard · · Score: 1

      According to TFS, It looks like it's primary usage is in telephones. You should stop being obtuse and realize that saying something has military applications is just some bullshit to add on to make it scarier.

      --
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    2. Re:military applications by Bob+the+Super+Hamste · · Score: 1

      I guess if they were stealing the recipee for Charmin that would also be military secrets.

      No that is civilian tech only. For the military version they need to talk to 3M.

      --
      Time to offend someone
    3. Re: military applications by Type44Q · · Score: 1

      Non-stick toilet paper??

    4. Re:military applications by morgauxo · · Score: 1

      Again, if everything that could have some important use to the military is kept from the public then the rest of us do what? Go back to living in caves? Oh, wait.. those might be good bomb shelters...

  12. Re:Now Germany! by dunkelfalke · · Score: 1

    led by the leftists, who were created from the remaining parts of the totalitarian SED that governed the GDR

    The worst lie is a half truth. The left party was created as a fusion of PDS (itself a successor of SED, true enough) and WASG. Now WASG never had anything to do with DDR, being a party of disillusioned former social democrat party members from West Germany. This way the majority of the left party is just what SPD used to be once upon a time, but with the additional bonus of Gregor Gysi - a brilliant orator.

    And no, Germany is not a colony. Germany is a vassal state.

    --
    "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
  13. Once more into the breech, dear friends. by hey! · · Score: 3, Insightful

    I have no problem with going after people who steal trade secrets, anything more than I have a problem with going after people who steal nuclear secrets. The only thing is that the FBI has a long history of racist paranoia about Chinese scientists, from Quan Xuesen in the early 50s to Wen Ho Lee in the 90s.

    Rhwew may well of a legitimate case against these guys and if they do I hope they nail the bastards. But I'm not jumping to any conclusions based on FBI say-so.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    1. Re:Once more into the breech, dear friends. by Anonymous Coward · · Score: 1

      That or they've seen a long-term pattern. Only the fools deny that this is exactly what's happening.

    2. Re:Once more into the breech, dear friends. by SmaryJerry · · Score: 1

      If you have even done any business at all in China, you know this story is 100% true and probably under-exaggerated if anything. China has a completely different cultural perception about copying/stealing ideas and general bribery and collusion of organizations. Try to do any business where you purchase something in China without being offered a bribe. Seriously try it. It's not racist, if anything it would be nationalist. Everyone is out to make an extra buck and has no problem doing so. Companies, government officials, banks, judges, no one in China is going by the books because they all play the bribe game. I can't tell you how many people have had their ideas stolen by building their products in China. You have to have extremely strict control of your organizations with constant monitoring to build protects in China. That is why typically only the cheapest things are made there and why Apple moved their production to Brazil. The problem with building there is you end up like Jamie Lanister and even though you pay someone a bunch of money to protect your secret they still go and try to sell it to make more.

  14. Re:Now Germany! by luis_a_espinal · · Score: 2

    I really hope you are being sarcastic or something, and you don't really think that...

    The German airforce has over 200 front line offensive aircraft in its inventory, 109 of them being the Eurofighter.

    The German army has over 230 Leopard 2 main battle tanks, a tank commonly held as one of the best in the world, and over 150 PzH 2000 self propelled guns, again commonly held as one of the best in the world.

    The German navy has 81 commissioned ships in service, 43 of them front line offensive in nature.

    Germany isn't exactly a nation I would want to currently face in battle, not even with a top tier military such as the US, France, UK et al - those military's would almost certainly win any competition, but they wouldn't come out unscathed....

    Dude, you might want to check this: Germany’s army is so under-equipped that it used broomsticks instead of machine guns (Feb, 19, 2015)

    Or this older article from 2014: http://www.washingtonpost.com/world/europe/the-german-military-faces-a-major-challenge-from-disrepair/2014/09/30/e0b7997c-ea40-42be-a68b-e1d45a87b926_story.html

    Hell, just google "Germany military equipment problems". When German soldiers have to use broomsticks to hide the facts they did not have heavy machine guns during a NATO exercise, I have to say your post is full of uninformed baloney. This particular incident, that is the kind of crap I would expect from an underdeveloped nation, not from the fourth largest economy.

  15. Not 1st time: one year ago (to the day) by walterbyrd · · Score: 1

    Wall Street Journal:

    U.S. Charges Five in Chinese Army With Hacking
    http://www.wsj.com/articles/SB10001424052702304422704579571604060696532

  16. Byproduct of a patent-and-monopoly mindset? by swb · · Score: 4, Interesting

    I wonder if this is a byproduct of the general corporate tendency to look at "innovation" as a way to get a patent which is then used to enforce a monopoly and collect rents. Collecting rents is a disincentive towards more innovation, product improvements and other business efficiencies. Why compete when you can just charge rents?

    If there wasn't a patent-and-monopoly mindset, perhaps there would be greater effort put into innovation as a means to more rapidly improve products (as well as a focus on other business efficiencies). If somebody "stole" your IP in this model, it would matter less because your pace of innovation may render the stolen IP retrograde by the time it was turned into useful products, and your sales would be driven by the strength of your products not because you had a legalized monopoly.

  17. Re:On behalf of planet earth by jblues · · Score: 3, Interesting

    [Proof needed]. What fucking sense does it make for the NSA to spy on Brazil's deep-ocean oil drilling technologies if not for giving that info to American* companies?

    * Gee, I wonder if Bush's family wouldn't benefit from that info. Noooo, that kind of corruption does not exist, the government is pristine.

    There was a similar case like this in Australia where the Australian Federal Police were spying in order to gain advantage in a gas resources deal with poor - and recently "liberated" - neighbor East Timor. When it came to light, the Australian lawyer representing East Timor was roughed up and had documents seized.

    These are just the cases we hear about. Presumably the secret service manage to keep their operations secret some of the time.

    --
    If it acquires resources on instantiation like a duck, then its a shared_ptr<Duck>
  18. Re:On behalf of planet earth by St.Creed · · Score: 4, Informative

    The USA snoops on powers but doesn't hand that over to corporations.

    [Proof needed]. What fucking sense does it make for the NSA to spy on Brazil's deep-ocean oil drilling technologies if not for giving that info to American* companies?

    Monitoring violations of the Benthic Treaty.

    --
    Therefore, by the (faulty) logic you're using, you're just a cow with a keyboard - osu-neko (2604)
  19. Re:Now Germany! by cheesybagel · · Score: 1

    Greece has more tanks than Germany. That's how few tanks Germany has. Russia has like 10x the amount of tanks.

  20. Re:Now Germany! by cheesybagel · · Score: 1

    Greece has 353 Leopard 2 MBTs. Russia has 930 T-90s, 4500 T-80s in reserve, 8000 T-72 MBTs in reserve.

    Russia also has 443 Su-27 derived aircraft.

  21. USA handles industrial espionage THE AMERICAN WAY by GroeFaZ · · Score: 2
    --
    The grass is always greener on the other side of the light cone.
  22. Avago and Skyworks are massive by Anonymous Coward · · Score: 3, Informative

    "two small, American chipmakers — Avago Technologies and Skyworks Solutions"

    Avago has a market cap over 30 billion, and Skyworks is almost a 20 billion dollar company. They're not exactly garage start-ups, and everyone in the RF world recognizes them as being quite big players.

  23. already tit-for-tat by peter303 · · Score: 1

    Chinese requires a visa at aminimum of $130. This was in reaponse to the visa increase by the US after 9-11.

  24. Re:Now Germany! by myowntrueself · · Score: 2

    Greece has 353 Leopard 2 MBTs. Russia has 930 T-90s, 4500 T-80s in reserve, 8000 T-72 MBTs in reserve.

    Russia also has 443 Su-27 derived aircraft.

    Greece actually has an enemy right on its border that it might plausibly go to war with in the not too distant future... Germany not so much.

    --
    In the free world the media isn't government run; the government is media run.
  25. Re:Better get more visa workers to replace them by crimson+tsunami · · Score: 1

    Then they will just move on to plan B and pay a 'local' to steal it.
    What, you thought America didn't have criminals or greedy people?

  26. Re:Now Germany! by Anonymous Coward · · Score: 1

    Yes, it turns out the ministry of defense is just a large money printing machine for Heckler & Koch, and friends.
    Guttemberg has wanted to change this, and started reforms, but then suprise suprise his doctor title based on copy+paste. What a coincidence it became public right then.
    Let's see what they find out about von der Leyen...

  27. Re:Now Germany! by dunkelfalke · · Score: 1

    The majority of SED leftovers actually went to east-CDU. And now we have an ex FDJ secretary for propaganda as a chancellor. I'd take Gysi instead anytime.

    --
    "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
  28. Re:On behalf of planet earth by cyberchondriac · · Score: 1

    If you think only the US government taps individuals and companies, then you are incredibly naive.

    A few minor tweaks holds true as well.

    --

    Look back up at my post, now look back down, you're on the Internet. Now look back up. I'm a signature.
  29. taco, it is driven by spies. by WindBourne · · Score: 1

    As one that has dealt with one Chinese spy , and potentially, another one, it is obvious that China is hard at work stealing as much tech as they can. Sadly, our clearance methods were compromised by privatizing them. We should give it back to FBI, along with ICE. There are far far too many chinese spies in the west.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  30. Re: On behalf of planet earth by WindBourne · · Score: 1

    Not just for economic gain. In general, China wants offensive weaponry as quickly as possible.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  31. Re:Now Germany! by allcoolnameswheretak · · Score: 1

    All german parties except of the CDU/CSU (which are "sister parties"), led by the leftists, who were created from the remaining parts of the totalitarian SED that governed the GDR, and, out of this "tradition", have a very anti-US and pro-russia position

    Are you serious? That is ridiculous. The FDP (liberal party), the SPD (social democrats) and the Green Party are not pro-Russians. None of the parties are pro Russian except the extreme left (Die Linke) and the extreme right (NPD, AfD).

    There is some pro-Russian sentiment among many former citizens of the German Democratic Republic (East Germany), but the vast majority of Germans, especially in West Germany, are very pro USA. Most Germans were actually quite let down by recent revelations that the US does not consider Germany one of its closest allies, at least in terms of intelligence cooperation, as the general perception in Germany has been that it is indeed one of the closest allies.

    The presidency of GW Bush has hurt public perception of the US in Germany a lot, but that is not singular to Germany, this has been the case in almost the entire world.
    Still I would estimate that if forced to choose a side, 80% of Germans would favor partnership with the US over Russia.
    Like Bush before him, Putin seems like he is doing all he can to hurt the Russian reputation accross the globe, but especially in Europe.

  32. Re:Now Germany! by Ottawakismet · · Score: 1

    Germany is a laggard in NATO, that fails to spend what is needed. Germany is still a consumer of security, not a provider of it. NATO troops have had to defend Germany for decades, and US troops are still present in Germany. Germany is the most unreliable country in NATO, look at how cowardly they behaved in Afghanistan. It was appalling! Over the Ukraine, Germany covers its eyes and pretends it cannot see what is going on, and tries to appease Russia The airforce is essentially grounded "Only one of its four submarines is operational. Only 70 out of its 180 GTK Boxer tanks are fit for deployment. Just seven of the German navy’s fleet of 43 helicopters are currently flightworthy." http://www.theguardian.com/wor... Canada has a more reliable military then that, despite spending much less money.

  33. Re: On behalf of planet earth by WindBourne · · Score: 1

    Of course, no tech was passed on those. What happened is that NSA overheard airbus and other companies offering illegal kickbacks to win business, so that was reported. Big difference between economic espionage of giving tech to others, vs. reporting to legal authorized of criminal offenses.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  34. Re:Now Germany! by Ottawakismet · · Score: 1

    What enemy is on Greeces border?? Turkey is a Greek ally, they are pledged to defend each other Russia does not border with Greece, but Kaliningrad is right near to Germany, just a quick hop over the Baltic

  35. Re:Now Germany! by myowntrueself · · Score: 2

    What enemy is on Greeces border?? Turkey is a Greek ally, they are pledged to defend each other

    Russia does not border with Greece, but Kaliningrad is right near to Germany, just a quick hop over the Baltic

    Turkey and Greece are both members of NATO but, while being NATO member states have still almost gone to war! The border is still full of land mines.

    --
    In the free world the media isn't government run; the government is media run.
  36. Re:Now Germany! by allcoolnameswheretak · · Score: 1

    You are exaggerating, but there is some truth to that, for sure.

    Maybe it's worth mentioning that due to some cataclysmic events you might have heard about in history class, Germany has issues with many things related to patriotism and militarism.

    It's no joke. Expressing patriotism or sympathy for militarism is kind of taboo and still frowned upon in Germany.

  37. Re:Now Germany! by wiggles · · Score: 2

    Until you see Russians who aren't carrying broomsticks.

  38. Re:Now Germany! by cheesybagel · · Score: 1

    How about the Netherlands? Who did they invade? Same thing they don't spend on their own defense. Last thing I heard from them was how they sold all their tanks. Used to have 100 Leopard 2. Now 0.

  39. Re:Now Germany! by cheesybagel · · Score: 1

    Might as well roll the red carpet and let the Russians in.

  40. More useful than the dumb War on Terror by WillAffleckUW · · Score: 1

    The impact of actions like this is many many many times greater than any impact from the stupid waste on spying on Americans for the War on Terror.

    The only spying that has worked has been that actually done in Saudi Arabia, Pakistan and other real threats.

    So, about time.

    --
    -- Tigger warning: This post may contain tiggers! --
  41. Re:On behalf of planet earth by sydbarrett74 · · Score: 1

    I'm sorry, but if you believe the American intelligence apparatus doesn't engage in industrial espionage, I can only say that you're rather...innocent, to be diplomatic.

    --
    'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
  42. Re:Now Germany! by dunkelfalke · · Score: 1

    Eckhard, die Russen sind da!

    --
    "It's such a fine line between stupid and clever" -- David St. Hubbins, Spinal Tap
  43. Re:Now Germany! by allcoolnameswheretak · · Score: 1

    The Durch are to busy partying. I mean, who would want to drive around in a cramped and smelly tank when you have one of the highest living standards in the world and Amsterdam?

  44. Re:Now Germany! by cheesybagel · · Score: 1

    Pray Vlad doesn't roll his tanks over Europe then.

  45. Re:Now Germany! by luis_a_espinal · · Score: 1

    As a German, I'd rather see Germans with broomsticks and a healthy economy...

    Because those two are so mutually exclusive. You people are dumb. If you do not want to be an armed country, that's great, just be open about it as opposed to pretending to have an army with broomsticks in lieu of heavy machine guns.

  46. Re: Never assume that ALL your Chinese workers are by mnemotronic · · Score: 1

    Apple and, to be fair, Google & others, want cheaper workers. That's ok. They want to keep costs down. Shareholders agree. They want to artifically control the labor market. That's less ok. They should realize the short-term costs (fines) and longer-term costs (loss of IP). http://www.inc.com/associated-...

    --
    The Russians have won. They have made the world a cesspool of distrust, greed, fear and hate.