Ex-GE engineer convicted over trade secret conspiracy

A New York federal jury has convicted a former General Electric engineer over an alleged conspiracy to steal turbine technology trade secrets to benefit China.

On Friday, April 1, the US Department of Justice (DoJ) announced that, after a four-week trial, the jury convicted Xiaoqing Zheng of conspiracy to commit economic espionage.

Zheng, and a Chinese businessman, were charged with economic espionage and conspiring to steal GE’s trade secrets back in April 2019.

The DoJ said that Zheng—who was employed at GE Power & Water in New York, as an engineer specialising in sealing technology—had conspired to steal trade secrets surrounding GE’s steam and gas turbine technologies, knowing or intending to benefit China.

Assistant attorney general Matthew Olsen of the DoJ’s national security division, said: “Zheng conspired to steal trade secrets from his employer, GE, and transfer this information to his business partner in China, so they could enrich both themselves and companies receiving support from the PRC government. This is the kind of exploitation of our economy and open society that the department will continue to counter relentlessly.”

Sentencing is scheduled for August 2, 2022, before US District Judge Mae D’Agostino. Zheng faces up to 15 years in prison, a fine of up to $5 million, and a term of supervised release of up to three years.

US attorney Carla B. Freedman for the Northern District of New York added: “Today’s verdict holds Xiaoqing Zheng accountable for betraying his employer and trying to help China cheat in the global marketplace.

“With our law enforcement partners, we will continue to investigate and prosecute individuals who connive to steal trade secrets and valuable technology from the innovative companies doing cutting-edge work in our district.”

While Zheng was convicted of one count of conspiracy to commit economic espionage, the jury acquitted the former engineer of two counts of economic espionage and two counts of trade secret theft.

The jury could not reach a verdict on one count of conspiracy to commit trade secret theft, two counts of economic espionage, three counts of trade secret theft, and one count of making a false statement to the FBI.

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