https://mentourpilot.com/us-court-sentences-ge-engine-spy-for-china/
A court in New York sentenced a man to 2 years in jail for stealing industrial secrets from engine maker GE, on behalf of parties in China.
Before the end of 2022, Chinese aircraft maker Comac celebrated the delivery of its first C919 narrowbody jet to its first customer, China Eastern Airlines. This is a key development that could greatly affect the sales of both Boeing and Airbus in the country. China represents a major market for both aircraft manufacturers.
But many of Comac’s suppliers for the C919 are outside China, including its engine supplier. The aircraft currently uses a variant of the CFM LEAP engine, a type that also powers the 737 MAX and much of the A320neo aircraft family. Some dispute the production potential of the C919 since the majority of its production cost involves its engines and other key imported parts.
And this is why there has been a lot of interest in the case of an individual on trial for conspiring to steal trade secrets from engine maker General Electric, on behalf of China. This is a 59-year-old man called Xiaoqing Zheng, who resides in New York. He started working for GE in 2008 and continued to do so for around ten years.
CONTROVERSY AND ENGINE DEVELOPMENT IN CHINA
Authorities in China have denied any involvement in the case. But the trial indicated that Zheng conspired with others to hand over engine secrets to various companies and institutions in China. Zheng’s specialty when working for GE was in turbine sealing technology. GE and Safran, in France, are 50-50% partners in the CFM venture, that makes the LEAP engine.
In the future, Comac plans to equip the C919 with an engine made in China. This will be the ACAE CJ-1000A, which is still under development. It should enter service after 2030. A smaller variant of the same engine could also power a version of the ARJ21, Comac’s previous airliner.
Zheng’s conviction follows that of a Chinese national last November, in Cincinnati. That individual conspired to steal secrets from multiple aerospace companies in the United States. US authorities have brought charges against other individuals for similar espionage cases.
All this takes place while trade relations between the United States and China remain tense. This seems to be affecting Boeing, which hasn’t made a sale of passenger aircraft to China for several years.
Former GE Power Engineer Sentenced for Conspiracy to Commit Economic Espionage
A New York man was sentenced today to 24 months in prison for conspiring to steal General Electric (GE) trade secrets, knowing or intending to benefit the People’s Republic of China (PRC).
Xiaoqing Zheng, 59, of Niskayuna, New York, was convicted of conspiracy to commit economic espionage, following a four-week jury trial that ended on March 31, 2022. According to court documents, Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the PRC and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
“Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric," said U.S. Attorney Carla B. Freedman for the Northern District of New York. "We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
“American ingenuity is an integral part of the United States economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
U.S. District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve one year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI).
The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers for the Northern District of New York, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section.
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