Understanding China, One Blog at a Time

An American in China

Sinovel Charged With Cyber Espionage in USA

Posted by w_thames_the_d on August 8, 2013

This is how China does business.


“They were out to kill my company,” said American Semiconductor CEO Daniel McGahn. “We thought we were playing by the Chinese rules. We didn’t anticipate outright theft as part of their business model.”

In filing the charges, US prosecutor John Vandreuil called Sinovel’s actions against American Semiconductor “nothing short of attempted corporate homicide.”

According to a report from the Commission on the Theft of American Intellectual Property published in May, Chinese looting of US technology is costing the US economy up to US$300 billion a year and millions of jobs. The national industrial policy goals in China “encourage IP theft, and an extraordinary number of Chinese in business and government entities are engaged in this practice,” the report concluded.

Former US ambassador to China and co-chairman of the commission Jon Huntsman said the Sinovel case shows that American companies have “had enough” of China’s technology theft, while Michigan congressman Mike Rogers said the US is “no longer going to play nice about what we know is as basic as highway robbery.”

“There ought to be a consequence for it,” Rogers said. “We can’t continue to let them believe that they can steal this property and then go ahead and compete against US companies at a price point that our companies can’t compete with.”



2 Responses to “Sinovel Charged With Cyber Espionage in USA”

  1. Not Chinese said

    China’s business model is: lie, steal,copy and cheat. They can never dominate if they do not change.

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