China

Chinese-American engineer charged with stealing General Electric trade secrets to take to China

Xiaoqing Zheng sneaked out turbine technology data by hiding it within the code of a digital photo, the FBI said

Agence France-Presse UPDATED :

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A Chinese-American engineer faces charges of stealing valuable technology from General Electric, sneaking it out hidden in a picture of the sunset to take to China, the US Justice Department said.

Xiaoqing Zheng, 55, a US citizen also believed to have Chinese nationality, was scheduled to appear before a judge in Albany, New York, on Thursday, a day after his arrest, federal prosecutors said.

After a four-year investigation, the FBI arrested Zheng after searching his home and finding, among other things, a handbook detailing “resources” Beijing would grant to individuals providing certain technologies.

Zheng’s arrest comes as US President Donald Trump intensifies the trade war with Beijing, largely over complaints that China steals US technology or obliges American companies to share know-how in exchange for doing business in the country.

Trump imposed punishing tariffs on tens of billions in Chinese imports and plans more to increase the pressure on Beijing to correct the pervasive industrial espionage.

US investigators believe Zheng may have begun stealing thousands of files containing GE’s industrial secrets as far back as 2014, according to court documents.

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Zheng worked for or owned Chinese companies dealing in the same technologies produced by GE Power, which produces and markets energy generation techniques around the world, the FBI found.

“The GE proprietary technologies on which Zheng works would have economic value to any of GE’s business competitors,” FBI Special Agent MD McDonald said in an affidavit.

GE monitored Zheng as he allegedly transferred files containing turbine technology to his personal email account while hiding the data within the binary code of a digital photograph of a sunset, a process known as “steganography,” McDonald said.

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After a search of Zheng’s home in Niskayuna, New York, FBI agents said they retrieved the reward handbook and a passport showing five trips to China in the past two years.

FBI agents questioned Zheng on Wednesday and said he acknowledged taking GE’s proprietary information using steganography on around five to 10 occasions.

Charged with a single count of theft of trade secrets, Zheng faces a maximum of 10 years in prison and a fine of US$250,000 as well as three years of supervised release.

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