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US Company's China Employee Allegedly Stole Code To Help Local Government (csoonline.com)

Reader itwbennett writes: Xu Jiaqiang, a Chinese national, worked as a developer for an unnamed U.S. company's branch in China (a Reuters report says it's IBM) from November 2010 to May 2014, when he resigned voluntarily. A year later he was allegedly caught trying to sell stolen proprietary source code to U.S. undercover agents, who claimed they were starting a large-data storage company. The software is described in the original complaint as a key component of one of the world's largest scientific supercomputers and of commercial applications that require rapid access to large volumes of data. In December 2015, Xu was arrested by the FBI, alleged to have stolen for his own benefit and that of the National Health and Family Planning Commission in China, although no specific charges relating to actual transfer of the code to the National Health and Family Planning Commission are mentioned in the superseding indictment.

49 comments

  1. This is... by Anonymous Coward · · Score: 2, Insightful

    Unsurprising

  2. afraid to use the words. by will_die · · Score: 2

    From the article he stole the information for the Chinese government and was in New York when he tried to sell it again. So how is him being in New York make China a "local government"
    Call it like it is the guy stole computer code and information for the Chinese government and one of its agencies.

    1. Re:afraid to use the words. by Anonymous Coward · · Score: 0

      well, maybe if he stole it for them, then what he did was steal it from them to sell, and now the FBI, China's little bitch, is enforcing Chinese law

    2. Re: afraid to use the words. by Anonymous Coward · · Score: 0

      You have it wrong. He was in China, working for a subsidiary there when he stole it. There, he apparently sold or provided it to the local government there. Though the details on that are a bit vague, he was fired but obviously further prosecution would go nowhere.

      Then he went to New York where the FBI nabbed him for trying to sell it again to someone else.

      That is why he is now under arrest.

    3. Re:afraid to use the words. by parkinglot777 · · Score: 2

      How about he was in China at the time he was employed? He stole it for "local government" because he was not in the U.S. yet. Until May 2015, he was trying to sell the code to U.S. undercover in the U.S. Then he came to NY in December 2015 and was arrested. Everything is on TFA...

    4. Re:afraid to use the words. by Anonymous Coward · · Score: 0

      Let's face it, China steals everything they can. Nothing new there. Happened at a company I once worked for, and I'm sure it's happening to the company I work at now.

    5. Re: afraid to use the words. by Anonymous Coward · · Score: 1

      We just need to figure out how to get guns into software, so it can defend itself.

  3. Par for the course by Anonymous Coward · · Score: 0

    If you are a software developer with any kind of marketable product and you hire foriegn nationals with or without H1B visas, prepare to have your code stolen. This guy got caught, but the other 99% don't...

    1. Re: Par for the course by Anonymous Coward · · Score: 0, Troll

      I have no sympathy for multinational companies that out source their workforce.

  4. FBI is China's Little Bitch by zenlessyank · · Score: 1

    Fuck.

    1. Re:FBI is China's Little Bitch by Anonymous Coward · · Score: 0

      Well, that would require A) The FBI to have engaged in questionable behavior that would ruin their reputation among the American public, B) China to have hackers with the prowess to obtain such information, and C) China to have a platform to broadcast that information that would be credible enough to get traction - or enough information so as to be indisputable or render other explanations non-credible at best.

  5. XU JIAQIANG SOLD ME HADOOP FOR $3.50 by Anonymous Coward · · Score: 0


     

  6. Common in china by NotInHere · · Score: 3, Insightful

    this is common if you cooperate with china. They let you show how to do it and then they erect a second factory owned by the brother or the nephew or something. Ten years later you will be bought by that company.

    And China wants to get the "free market" label. ROFL at this ridiculousness. OOXML is ten times more an open standard than china is a free market.

    1. Re:Common in china by Anonymous Coward · · Score: 0

      The ability to sell your company's secrets is a part of the free market. Regulations and artificial monopolies (copywrite, etc) are its enemies.

    2. Re:Common in china by Sax+Russell+5449D29A · · Score: 4, Interesting

      Everyone operating in China is aware of this (hopefully). I've heard some funny stories how some companies are going as far as to leave intentionally broken blueprints laying around in their internal systems honeypot style.

      --
      -SR
    3. Re:Common in china by Required+Snark · · Score: 1
      You realize that IBM used to be notorious for doing the same thing. They would partner with a company that had developed new technology, hardware and/or software, and bring a produce to market with the IBM logo. Meanwhile they would have a team building a second generation and when time came to roll out the nextgen version it would be all IBM. The original developers would be screwed, because they had effectively left the market place because of the IBM branding and they were in direct competition with IBM.

      So you could view this a karmic payback.

      --
      Why is Snark Required?
    4. Re:Common in china by Anonymous Coward · · Score: 0

      Too free for you?

    5. Re:Common in china by Anonymous Coward · · Score: 0

      Hate to break it to you, but that is pretty much a picture perfect example of a free market. The new entrant to the market (the brother, nephew, or something) has access to the same information as the existing player (you) and therefore competes with you on price/quality. The entire concept of intellectual property, patents, trade secrets, etc. is antithetical to a free market, as it is artificially restricting the availability of information.

    6. Re:Common in china by Anonymous Coward · · Score: 1

      Unethical behavior in the past does not negate unethical behavior in the present.

      A country stealing from a foreign corporation is not "karmic paybalck" for a corporation copying from another corporation.

  7. Remember when the Russian stole from Goldman Sacs by m00sh · · Score: 1, Interesting

    Remember the story where a Russian immigrant stole trade secrets from Goldman Sacs? Turned out it was open source code and it was uploaded to work on it from home?

    Though the Xu was trying to sell it, I have a feeling that this is probably more of the anti-China that Slashdot has rather than really taking the time to talk about what is really going on.

    And, National Health and Family Planning Commission in China? What is the link to that agency and the code?

  8. Old news by rickb928 · · Score: 0

    Already got this...

    --
    deleting the extra space after periods so i can stay relevant, yeah.
  9. So let's stop dealing with China. by Anonymous Coward · · Score: 0

    There seems to be stories like this again and again, and all over the world you can find and buy one-off Chinese copies of U.S.-developed technology. At one point do we decide that cheap labor just isn't worth it?

    1. Re: So let's stop dealing with China. by Anonymous Coward · · Score: 0

      When we decide we want to pay more for stuff, and we want our stock portfolios to go down in value. Ie, never.

    2. Re:So let's stop dealing with China. by losfromla · · Score: 2

      When we decide that jobs are important and that increasing profits for multinationals just won't work once the only jobs left are those at McDonalds and Walmart.

      --
      Only I can judge you.
  10. It's not stealing if the code is still there by Anonymous Coward · · Score: 0

    source: https://news.slashdot.org/story/16/06/15/1358249/trent-reznor-youtube-is-built-on-the-back-of-stolen-content#comments

  11. The real surprising thing is... by Anonymous Coward · · Score: 0

    The real surprising thing is that he got caught.

  12. The max penalty for treason is death by Joe_Dragon · · Score: 0

    The max penalty for treason is death. Maybe we can get trump to pull the switch.

  13. Re:The max penalty for treason is death by The-Ixian · · Score: 0

    Trump could stand in the middle of Fifth Avenue and shoot somebody. And he wouldn't lose any voters, OK? It's like incredible.

    --
    My eyes reflect the stars and a smile lights up my face.
  14. Spectrum Scale/GPFS by Anonymous Coward · · Score: 0

    This is probably in reference to GPFS, now re-branded (ugh) as "Spectrum Scale".

    1. Re:Spectrum Scale/GPFS by Anonymous Coward · · Score: 0

      Yes it is. Xu was one of the engineers that worked on GPFS: http://news.softpedia.com/news...

    2. Re:Spectrum Scale/GPFS by jabuzz · · Score: 1

      Which puzzles me, because other than running it without a license I am not sure how having the source code to GPFS particularly helps given that end users are unlikely to have the specialist in depth knowledge of how the GPFS code works.

      Even then the licensing for GPFS is completely open in it's enforcement, you just declare a node as sever or client, no actual checking going on. So buy a single server license and a handful of client nodes and you are good to go.

      I guess one could read the code to determine exactly what some of GPFS's undocumented switches actually do. So exactly what are samba ACL's? Precisely what does cifsBypassShareLocksOnRename do? However it would not be hard to work out with a bit of testing.

      Disclosure I have expert to guru GPFS administration expertise.

  15. He got caught by Lead+Butthead · · Score: 2

    because he got greedy. Had he simply handed the code over to his Chinese government handler and move on, he would've been free to do this again else where. What an idiot.

    --
    ELOI, ELOI, LAMA SABACHTHANI!?
    1. Re:He got caught by Anonymous Coward · · Score: 0

      No, we should congratulate his behavior. I hope more follow in his path and reveal themselves.

  16. wrong by Lead+Butthead · · Score: 1

    the entire country('s politicians) is China's bitch. No other country are its politicians for sale to foreign interest more than the United States.

    --
    ELOI, ELOI, LAMA SABACHTHANI!?
  17. Common in capitalist society by Lead+Butthead · · Score: 2

    For some reason, the capacitor electrolyte fiasco some decade ago comes to mind...

    --
    ELOI, ELOI, LAMA SABACHTHANI!?
    1. Re:Common in capitalist society by Sax+Russell+5449D29A · · Score: 1

      My circa 2003 motherboard would have to agree with that. :-)

      --
      -SR
    2. Re:Common in capitalist society by AlejandroTejadaC · · Score: 1

      :D Thanks for remember this! https://www.theguardian.com/te...

  18. "Change" vs "stay the course" by Okian+Warrior · · Score: 1, Insightful

    Trump could stand in the middle of Fifth Avenue and shoot somebody. And he wouldn't lose any voters, OK? It's like incredible.

    There's a really obvious reason why he's so popular, so I don't think "incredible" is the right word to use.

    A lot of people are facing complete ruin and are scared, holding their breath hoping that something will change.

    Trump is the candidate for "change", and Clinton is the candidate for "stay the course".

    I'm not a Clinton supporter, but I don't think that statement about Hillary is particularly controversial even among her supporters. She's definitely a political insider, is funded by moneyed interests, and her website has a list of issues that give a sense of "direction" without promising anything concrete. Typical of politicians for the last 50 years - nothing bad or unusual about that.

    Trump has a list of 7 things that he will change, with a concrete list of changes for each. All of his proposed changes are aimed at making peoples' lives better.

    People who are secure in their position, who have a job and don't see themselves being laid off or expect to find a new job quickly if they are laid off should vote for Hillary. There are a lot of these people in the country, and "stay the course" is the least risky choice for them to make.

    People who are unemployed, struggling, or in fear of losing their situation should vote for Trump, because he's proposing to make changes.

    As the theory goes, when you're doing well you should minimise risk - don't do anything that could change your situation. When you're doing poorly, you can tolerate more risk in the hopes that it might help.

    So it really all boils down to the proportion of people in the country who are at-risk and scared, versus the proportion who think the current situation is "pretty good".

    We're presented with a never-ending stream of depressing news about this here on Slashdot, so it's easy to believe that majority of the country might be shivering in fear hoping for something to change, but that might not be an accurate view.

    "Change" or "stay the course"? The voters will probably decide this November.

  19. No, and neither does he by raymorris · · Score: 1

    Aleynikov, the programmer you're speaking of, said it "contained open-source code mingled with code that was proprietary to Goldman". He said that he uploaded it so that he could look at it later and remember how he did it. That's the story from his side. Goldman obviously has their side of the story too.

  20. Outsourcing by Anonymous Coward · · Score: 0

    How much do you want to bet that the original company is still outsourcing development because it's more "cost effective"?
    (assuming that company is still in business, of course)

    Do I sound bitter after losing my last job to outsourcing? Noooooo......

  21. Re:The max penalty for treason is death by Required+Snark · · Score: 1
    This guy is not a US citizen, so it can't be treason.

    If you are a Trump supporter it would not be a surprise. That's the kind of illiterate non-reasoning that Trump and his ignorant hoard specialize in.

    By the way, we are not at war with China (are you aware of this?) so it is very unlikely that any spying a Chinese citizen could do would be a death penalty case.

    --
    Why is Snark Required?
  22. "Hoard" versus "horde" by Okian+Warrior · · Score: 1

    If you are a Trump supporter it would not be a surprise. That's the kind of illiterate non-reasoning that Trump and his ignorant hoard specialize in.

    "Hoard" is to stock or store something, "horde" is a group of people.

    I'm a trump supporter.

  23. What is new , check on India. by Anonymous Coward · · Score: 0

    There are lots of Indian companies that do government contracts "made in India" with massive stolen code from foreign companies that we stupid enough to outsource some small part of a system and share the big source code with the Indians. I know a German company that found a clone of their system running in India "implemented" by a former subcontractor (one of the big IT companies) that wrote some marginal interface but stole the entire codebase.

  24. It is stolen in the classical sense.. by Anonymous Coward · · Score: 0

    of trade secrets or technological espionage.

    In most cases this is internal proprietary technology, some of it publicly available, but much of it institutional knowledge for in-house use in manufacturing and other industries.

    I will leave it up to others to better describe the difference between that and the entertainment industry's products.

  25. Microsoft did the same thing... by Anonymous Coward · · Score: 0

    As did Apple, and probably a few other companies I am forgetting.

  26. You realize... by Anonymous Coward · · Score: 0

    both of the places you mentioned as the only jobs left have automation programs in place to make 90+ percent of their workforces redundant, right?

    I'd worry about a whole nation without jobs, but given the saber rattling on the eastern front I think there is a good chance a new round of depopulation is going to take place before this decade or the next is through.

  27. Re:Remember when the Russian stole from Goldman Sa by Anonymous Coward · · Score: 0

    What makes you say /. is anti-China?