sunny.png
Sunday October 20th, 2019 6:08PM

Ex-GE engineer charged with stealing trade secrets for China

By The Associated Press

ALBANY, N.Y. (AP) — A former General Electric engineer and his business partner in China were indicted Tuesday on charges they stole the company's trade secrets from a New York plant for the Chinese government in what federal prosecutors called "a textbook example" of industrial espionage.

The Department of Justice announced that Xiaoqing Zheng, 56, of Niskayuna, New York, and Zhaoxi Zhang, 47, of Liaoning Province, China, were charged with economic espionage and conspiracy for stealing GE's turbine technologies for China.

Zheng was working for Boston-based GE's power division in Schenectady when he was arrested at his home last summer. FBI agents raided his suburban home and removed computers, cash and other items. Zhang, the business partner, wasn't charged at the time.

Prosecutors allege that Zheng stole computer files dealing with GE's gas and steam turbines and sent them to Zhang, who's in China.

The thefts are "a textbook example of the Chinese government's strategy to rob American companies of their intellectual property and to replicate their products in Chinese factories," said Assistant Attorney General for National Security John Demers.

GE said at the time of Zheng's arrest that it was cooperating with the investigation.

Zheng was arraigned in federal court in Albany on Tuesday and allowed to remain free on the $200,000 bond he posted after his arrest on Aug. 1, 2018. His lawyer, Kevin Luibrand, said he wasn't commenting on the charges.

According to the 14-count indictment, Zheng specialized in sealing technology at GE and used his access to company files to grab proprietary information and email it to Zhang, who is Zheng's nephew. The two men received financial support from the Chinese government and coordinated with government officials to enter into research agreements with Chinese state-owned institutions to develop turbine technologies, prosecutors said.

"When such technology is stolen it can be devastating to U.S. businesses and can result in American workers losing jobs," said FBI Assistant Director John Brown. "China continues to support behavior that violates the rule of law."

An email seeking comment on the indictment was sent to the Chinese embassy in Washington, D.C.

President Donald Trump has accused China of using predatory tactics to try to overtake U.S. technological dominance in various industries. Chinese officials have rejected the allegations while complaining that Washington's aim is to cripple a rising economic competitor.

In October, the Justice Department charged an operative of China's Ministry of State Security with attempting to steal trade secrets from GE Aviation and other aerospace companies. At the time the charges were made in Cincinnati, Ohio, Demers said the case was a "significant economic espionage matter" and the latest proof China is trying to steal information from American companies.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Looming wave of sex abuse cases poses threat to Boy Scouts
Lawyers across the U.S. are recruiting clients for a potentially crippling new wave of sex abuse lawsuits against the Boy Scouts
5:40PM ( 9 minutes ago )
Brothers sue Jussie Smollett's lawyers, claiming defamation
Two brothers who said they helped Jussie Smollett stage a racist and homophobic attack against himself are suing the "Empire" actor's attorneys for defamation
5:33PM ( 16 minutes ago )
Tension emerges between Congress, 2020 Dems on impeachment
Some top Democrats vying for the White House in 2020 are clamoring for impeachment proceedings against President Donald Trump, but many of their congressional colleagues are far more wary
5:25PM ( 24 minutes ago )
Associated Press (AP)
Trump meets with Twitter CEO amid bias complaints
President Donald Trump says he had a 'great meeting' with Twitter CEO Jack Dorsey, just hours after bashing the company profusely
5:14PM ( 35 minutes ago )
APNewsBreak: 2019 MLB payrolls drop due to signing bonuses
APNewsBreak: Large MLB signing bonuses mask otherwise flat market for 2nd straight offseason
4:59PM ( 50 minutes ago )
S&P 500, Nasdaq close at record highs as earnings roll in
The S&P 500 closed at an all-time high Tuesday, marking the stock market's complete recovery from a nosedive at the end of last year
4:58PM ( 51 minutes ago )
AP Business
AP source: Chiefs get Clark from Seahawks for draft picks
AP source: The Chiefs are acquiring defensive end Frank Clark from the Seahawks for a first-round draft pick this year and a second-round pick in 2020
3:35PM ( 2 hours ago )
S&P 500 index on track for all-time high as earnings roll in
The S&P 500 index was on track for an all-time high Tuesday as big U.S. companies began turning in solid results for the first quarter, despite predictions for the worst quarter of earnings growth in years.
3:26PM ( 2 hours ago )
US expands probe into air bag failures to 12.3M vehicles
U.S. auto safety regulators have expanded an investigation into malfunctioning air bag controls to include 12.3 million vehicles because the bags may not inflate in a crash
11:28AM ( 6 hours ago )
AP Business - Corporate News
Markets Right Now: S&P 500, Nasdaq close at record highs
The S&P 500 is closing at a record high, surpassing its September peak and recouping all the ground it lost in a nosedive late last year.
4:09PM ( 1 hour ago )
North Korea's Kim will go into Putin summit needing a win
As North Korean leader Kim Jong Un heads into his first summit with Russian President Vladimir Putin, he has a long wish list and a strong desire to mark a win after his failed Trump summit _ but will Putin oblige?
2:57PM ( 2 hours ago )
US new-home sales climbed 4.5% in March
Sales of new US homes rose 4.5% in March; strongest pace since November 2017 as market recovers from last year's slump
11:34AM ( 6 hours ago )
AP Business - Economy
Looming wave of sex abuse cases poses threat to Boy Scouts
Lawyers across the U.S. are recruiting clients for a potentially crippling new wave of sex abuse lawsuits against the Boy Scouts
5:40PM ( 9 minutes ago )
Brothers sue Jussie Smollett's lawyers, claiming defamation
Two brothers who said they helped Jussie Smollett stage a racist and homophobic attack against himself are suing the "Empire" actor's attorneys for defamation
5:33PM ( 17 minutes ago )
Tension emerges between Congress, 2020 Dems on impeachment
Some top Democrats vying for the White House in 2020 are clamoring for impeachment proceedings against President Donald Trump, but many of their congressional colleagues are far more wary
5:25PM ( 24 minutes ago )
Ex-USC coach, parent to plead guilty in college bribery scam
Two more people charged in a sweeping college admissions scandal have agreed to plead guilty
5:20PM ( 29 minutes ago )
Looming wave of sex-abuse cases poses threat to Boy Scouts
Lawyers across the U.S. are recruiting clients for a potentially crippling new wave of sex-abuse lawsuits against the Boy Scouts
5:15PM ( 34 minutes ago )