Understanding China, One Blog at a Time

An American in China

Chinese Students In Ameerica Caught Selling Weapons. Technology- WTF?

Posted by w_thames_the_d on October 3, 2014

China sends students to civilized countries so that they can steal valuable ideas and tech. Great idea for China. After all, what else would you expect from a lazy brood of vipers whose last ‘invention was infanticide?

What gets me is how stupid America is. Why in the heck do we allow Chinese access to sensitive ideas and technology?

Excerpt 1- from a few months ago

An undercover federal agent, posing as an international distributor of trade-protected technology, offered to help an Iowa State student illegally export devices to China, according to federal documents released to The Des Moines Register on Friday.

That student, Wentong Cai, 29, and his associate Bo Cai, 28, were later arrested and accused of multiple federal crimes that include smuggling and arms-regulation violations.

The case came to light this week, about four months after it was alleged to have occurred, but it’s still not clear what the men planned to do with the devices. They are not quoted in court documents as saying they had any specific malicious intent.

SEARCH WARRANT APPLICATION: Read federal investigators’ allegations

Copies of the search warrants for both men, obtained by the Register, indicate Wentong Cai contacted a New Mexico business in October and inquired about purchasing as many as 20 ARS-14 sensors. The technology helps gauge precise motion control in aerial and ground-base vehicles.

The devices have civilian uses but are notably used by the military. Exporters must obtain a license from federal officials, Friday’s documents indicate.

Via the Des Moines Register

Excerpt 2 from a few years ago
Chinese students suspects in espionage
Bill Gertz
Originally Published on WashingtonTimes.com

Two Chinese students studying in the United States supplied China’s military with American defense technology that allowed Beijing to produce a special metal used in sensors and weapons, according to a Pentagon report.

“This is a classic example of how the Chinese collect dual-use military technology,” an FBI official said. “Students come here; they get jobs; they form companies.”

The espionage, subject of an ongoing investigation, allowed China’s military to develop a version of the substance known as Terfenol-D, which cost the Navy millions of dollars in research to create.

One of the Chinese students attended Iowa State University, where he worked closely with the Department of Energy’s Ames Laboratory on the school’s campus. The lab developed the material invented by the Navy in the 1970s.

The other student attended Pennsylvania State University.

The Terfenol-D data were stolen within the past three years in a computer hacking incident, the FBI official said.

In its annual report on Chinese military power made public last week, the Pentagon stated that “one of the Chinese students admitted sending this information [on Terfenol-D] to the [People´s Liberation Army].”

The Pentagon noted that “usually the connections between [Chinese] academic, commercial, and military organizations are not so clear cut.”

The FBI official said a Chinese company linked to the theft of the Terfenol-D data, Gansu Tianxing Rare Earth Functional Materials Co. Ltd., known as TXRE, is directly connected to the Chinese military. TXRE was set up by a Chinese official who studied with one of the two Chinese students.

TXRE’s promotional literature states that it has developed a substance that U.S. officials say is Terfenol-D.

Terfenol-D is a high-tech material that changes shape in response to magnetic energy, and can be used in both sensors and mechanical devices. Because it has both commercial and military applications, any sale of the technology is strictly controlled and requires an export license.

The Navy uses Terfenol-D in an advanced sonar system designed to track enemy submarines. The material also has applications for advanced aircraft and spacecraft. U.S. officials said it could be used by the Chinese in a multiple warhead missile stage and in “smart” aircraft wings.

The sole U.S. manufacturer of Terfenol-D is Etrema Products Inc., a private company in Ames licensed to produce it. A company spokeswoman declined to comment on the Chinese acquisition of Terfenol-D.

Last week’s report was the U.S. government’s first public admission that the Chinese military had obtained the defense technology. Details of the Chinese acquisition of Terfenol-D were reported by Insight magazine in October.

“The close relationships between the personnel and organizations involved often makes it difficult to separate the research, funding and cooperation triangle among Chinese universities, government institutes and businesses,” the report said.

The Pentagon report stated that China is using students and scientists to develop its military technologies. “Husband-wife teams” also are employed, the FBI official said.

According to the report, Beijing’s China Defense Science and Technology Information Center is the key collector of foreign technology and is part of the military’s General Equipment Department (GED).

The GED “oversees a complex web of factories, institutes and academies that are subordinate to China’s nuclear, aeronautics, electronics, ordnance, shipbuilding and astronautics industries,” the report said. “Each of these institutions has an import/export corporation to facilitate the import of technology and knowledge.”

The FBI official said China’s government uses people who study advanced technology in the United States to infiltrate U.S. companies to gain access to sensitive information. The collectors then return to China and set up their own companies or provide the information to the military, the official said.

In another case, two Chinese students in the United States were caught sending submarine-related technology to China to a relative working for the Chinese military.

About 50,000 Chinese students currently study in the United States. U.S. officials said a small percentage are involved in intelligence and technology-gathering work for the Chinese government.

“Our position is that the intelligence threat is asymmetrical, and it is all over the United States — in Iowa, Mississippi, Maine or Alabama,” the official said.

The FBI responded to the foreign threat by putting counterintelligence squads in all FBI field divisions.

Excerpt 3

Huawei, aka China Telecom spy, illegally sold US tech to foreign country

BY: Bill Gertz
September 19, 2014 5:00 am

A Chinese telecommunications company linked to the People’s Liberation Army provided U.S.-origin equipment to Cuba in apparent violation of U.S. economic sanctions on the communist-ruled island.

U.S. officials familiar with intelligence reports said the equipment included U.S.-made modems, routers, and switches for telecommunications networks.

The transfer took place within the past two months and was reported by the U.S. Southern Command, the military command with responsibility for Latin and South America in internal channels, said officials who spoke on condition of anonymity.

One official said the transfer violated U.S. economic sanctions imposed on Cuba and that the transfer is under investigation by the Commerce Department.

Excerpt 4
Sir James Dyson says UK universities teeming with Chinese spies

THE inventor Sir James Dyson has warned that Chinese students are infiltrating British universities to steal technological and scientific secrets and even planting software bugs to relay the information to China.

Dyson, best known for inventing the bagless vacuum cleaner, said he had evidence that the bugs were left by postgraduates to ensure the thefts continued after they had returned home.

He said the extent to which foreign students dominated many science, technology and engineering research posts, often paid for by the British taxpayer, was “madness”.

“As an exporter and someone developing technology here, it’s very disheartening to see these universities being used by foreign countries and foreign companies,” said Dyson.

Universities acknowledge the threat from espionage, particularly by Chinese students, and are taking measures to counter it. Nicola Dandridge, chief executive of Universities UK, said: “We are very aware this is going on and we are taking it very seriously.”

The concerns have emerged just days after Theresa May, the home secretary, watered down plans to slash the number of foreign students in Britain. Dyson said: “Britain is very proud about the number of foreign students we educate at our universities, but actually all we are doing is educating our competitors.

“Foreign governments and businesses are prepared to pay quite a lot of money for people to study at Cambridge, Imperial College and other Russell [Group] universities because they appreciate the value of these research posts.

“They go back home taking that science and technology knowledge with them and then they start competing with us. This is mad – it is madness.

“I’ve seen frightening examples. Bugs are even left in computers so that the information continues to be transmitted after the researchers have returned home.”

A number of such cases have been uncovered at British universities, with leading research institutions the most heavily targeted.

David Willetts, the universities minister, said: “This is not something foreign students should be doing in the UK. I will study very carefully the evidence that James Dyson has got.”



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