Sat, Aug 04, 2018 - Page 10 News List

Chinese-American faces charges of stealing GE tech

AFP, WASHINGTON

A Chinese-American engineer faces charges of stealing valuable technology from General Electric Co (GE), sneaking it out hidden in a picture of the sunset to take to China, the US Department of Justice said.

A federal judge on Thursday ordered that Zheng Xiaoqing, 56, be released yesterday on US$100,000 bond and placed under electronic monitoring while surrendering his passport, according to the US Attorney’s Office for the Northern District of New York.

Zheng, a US citizen also believed to have Chinese nationality, was arrested on Wednesday by the FBI, which also searched his home.

The agency allegedly found, among other things, a handbook detailing “resources” Beijing would grant to individuals providing certain technologies, court documents say.

Zheng’s arrest comes as US President Donald Trump intensifies his trade war with Beijing, largely over complaints the nation steals US technology or obliges US companies to share know-how in exchange for doing business in China.

Trump imposed punishing tariffs on US$34 billion of Chinese imports and plans more to ratchet up the pressure on Beijing to correct the pervasive industrial espionage.

GE on Thursday said that it had been cooperating with the FBI for “some time” on the case.

“At GE, we aggressively protect and defend our intellectual property, and have strict processes in place for identifying these issues and partnering with law enforcement,” a spokesman said.

US investigators said that Zheng might have begun stealing thousands of files containing GE’s industrial secrets as far back as 2014, court documents showed.

Moreover, Zheng worked for or owned Chinese companies dealing in the same technologies produced by GE Power, which produces and markets energy generation techniques around the world, the FBI found.

“The GE proprietary technologies on which Zheng works would have economic value to any of GE’s business competitors,” FBI Special Agent M.D. McDonald said in an affidavit.

GE monitored Zheng as he allegedly transferred files containing turbine technology to his personal e-mail account while hiding the data within the binary code of a digital photograph of a sunset, a process known as “steganography,” McDonald said.

Following a search of Zheng’s home in Niskayuna, New York, FBI agents said they retrieved the reward handbook and a passport showing five trips to China in the past two years.

FBI agents questioned Zheng on Wednesday and say he acknowledged taking GE’s proprietary information using steganography on about five to 10 occasions.

Charged with a single count of theft of trade secrets, Zheng faces a maximum of 10 years in prison and a fine of US$250,000, as well as three years of supervised release, although punishments are frequently imposed at less than that.

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