DoJ charges two with China-backed GE trade secrets theft
The US Department of Justice (DoJ) has unsealed economic espionage charges against two individuals who allegedly conspired to steal technology from General Electric (GE) for the benefit of the People’s Republic of China.
In a press release issued yesterday, April 23, the DoJ further claimed that the two defendants received financial assistance from the Chinese government to develop turbine technology on the back of the trade secrets theft.
Assistant attorney general John Demers said that the indictment alleged a “textbook example of the Chinese government’s strategy to rob American companies of their IP and to replicate their products in Chinese factories”.
“We will not stand idly by while the world’s second-largest economy engages in state-sponsored theft”, he added.
One of the individuals stole technical information while employed as an engineer at GE, the release said. According to the DoJ, he conspired to transfer the technology to a businessman in China, who was also charged.
The former GE engineer, who is also charged with making false statements to the Federal Bureau of Investigation, has pled not guilty.
The technology related to design models, engineering drawings, configuration files, and material specifications for gas and steam turbines.
The defendants’ economic espionage was “done knowing and intending that the thefts would benefit the People’s Republic of China and one or more foreign instrumentalities”, including research and academic institutes, the DoJ claimed.
The charges include six counts of economic espionage and six counts of trade secrets theft.
WIPR has contacted GE and Chinese officials for comment.
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