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China Crime Government United States Technology

US Levels Espionage Charges Against 6 Chinese Nationals 100

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.
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US Levels Espionage Charges Against 6 Chinese Nationals

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

  • Yes but what about when it's the US that pulls this kind of espionage? Oh right, they're the good guys.
    • by AmiMoJo ( 196126 )

      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.

  • by Anonymous Coward

    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 Bra

    • by gl4ss ( 559668 )

      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.

    • Oddly, the Germans learned how to do liquid rockets from Goddard, an american. And most of that was stolen.
  • by bradley13 ( 1118935 ) on Wednesday May 20, 2015 @07:03AM (#49734579) Homepage

    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 [wikipedia.org]. 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.

    • by C0R1D4N ( 970153 )
      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.
  • 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.
  • '...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.

    • 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 [3m.com].

  • by hey! ( 33014 ) on Wednesday May 20, 2015 @08:34AM (#49735075) Homepage Journal

    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.

    • by Anonymous Coward

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

    • 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, govern
  • Wall Street Journal:

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

  • Not as if there is any risk in hiring foreign nations. Absolutely no chance that our trade secrets are going to go to countries that do not respect our laws, and may be hostile to our interests, and already have a near monopoly on our manufacturing.

    • 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?
  • by swb ( 14022 ) on Wednesday May 20, 2015 @08:49AM (#49735153)

    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.

  • by Anonymous Coward on Wednesday May 20, 2015 @09:45AM (#49735521)

    "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.

  • 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.
  • 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.

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