This probably include various organs also! Do they not send organs to the us?

The Chinese Nuclear Weapons Program: Problems of Intelligence Collection and Analysis, 1964-1972 Edited By William Burr March 31, 2000http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB26/index.html

Link to DCI STATEMENT ON DAMAGE ASSESSMENT review:
http://ftp.fas.org/sgp/news/dci042199.html
...

China obtained by espionage classified US nuclear weapons information that probably accelerated its program to develop future nuclear weapons. This collection program allowed China to focus successfully down critical paths and avoid less promising approaches to nuclear weapon designs.


China obtained at least basic design information on several modern US nuclear reentry vehicles, including the Trident II (W88).
China also obtained information on a variety of US weapon design concepts and weaponization features, including those of the neutron bomb.
We cannot determine the full extent of weapon information obtained. For example, we do not know whether any weapon design documentation or blueprints were acquired.
We believe it is more likely that the Chinese used US design information to inform their own program than to replicate US weapon designs.
China's technical advances have been made on the basis of classified and unclassified information derived from espionage, contact with US and other countries' scientists, conferences and publications, unauthorized media disclosures, declassified US weapons information, and Chinese indigenous development. The relative contribution of each cannot be determined.

Link to the Cox report: http://www.house.gov/coxreport

Chapter 2: http://www.house.gov/coxreport/chapfs/ch2.html

The People's Republic of China (PRC) has stolen classified information on all of the United States' most advanced thermonuclear warheads,
The stolen U.S. secrets have helped the PRC fabricate and successfully test modern strategic thermonuclear weapons.
in the mid-1990s the PRC stole from a U.S. national weapons laboratory classified U.S. thermonuclear weapons information
The W-88 is a miniaturized, tapered thermonuclear warhead. It is the United States' most sophisticated strategic thermonuclear weapon.
 the PRC has stolen classified U.S. information about neutron bomb warheads from a U.S. national weapons laboratory.
the Select Committee is aware of other PRC thefts of U.S. thermonuclear weapons-related secrets.
the PRC will exploit elements of the stolen U.S. design information for the development of the PRC's new generation strategic thermonuclear warheads
People's Liberation Army (PLA) mobile ICBMs, the DF-31, may be tested in 1999 and could be deployed as soon as 2002.
PRC's collection of intelligence on smaller U.S. thermonuclear warheads began in the 1970s

http://www.washingtonpost.com/wp-dyn/content/story/2008/04/02/ST2008040204050.html?sid=ST2008040204050

Chinese Spy 'Slept' In U.S. for 2 Decades
Espionage Network Said to Be Growing

Prosecutors called Chi Mak the "perfect sleeper agent," though he hardly looked the part. For two decades, the bespectacled Chinese-born engineer lived quietly with his wife in a Los Angeles suburb, buying a house and holding a steady job with a U.S. defense contractor, which rewarded him with promotions and a security clearance. Colleagues remembered him as a hard worker who often took paperwork home at night.

Eventually, Mak's job gave him access to sensitive plans for Navy ships, submarines and weapons. These he secretly copied and sent via courier to China -- fulfilling a mission that U.S. officials say he had been planning since the 1970s.

Mak was sentenced last week to 24 1/2 years in prison by a federal judge who described the lengthy term as a warning to China not to "send agents here to steal America's military secrets." But it may already be too late: According to U.S. intelligence and Justice Department officials, the Mak case represents only a small facet of an intelligence-gathering operation that has long been in place and is growing in size and sophistication.

The Chinese government, in an enterprise that one senior official likened to an "intellectual vacuum cleaner," has deployed a diverse network of professional spies, students, scientists and others to systematically collect U.S. know-how, the officials said. Some are trained in modern electronic techniques for snooping on wireless computer transactions. Others, such as Mak, are technical experts who have been in place for years and have blended into their communities.

"Chi Mak acknowledged that he had been placed in the United States more than 20 years earlier, in order to burrow into the defense-industrial establishment to steal secrets," Joel Brenner, the head of counterintelligence for the Office of the Director of National Intelligence, said in an interview. "It speaks of deep patience," he said, and is part of a pattern.

Other recent prosecutions illustrate the scale of the problem. Mak, whose sentence capped an 18-month criminal probe, was the second U.S. citizen in the past two weeks to stand before a federal judge after being found guilty on espionage-related charges.

On Monday, former Defense Department analyst Gregg W. Bergersen pleaded guilty in Alexandria to charges that he gave classified information on U.S. weapons sales to a businessman who shared the data with a Chinese official.

In March, the Reston company WaveLab pleaded guilty to violating export laws when it shipped militarily sensitive power amplifiers to China, according to court papers. A lawyer for the company said it neglected to get proper licenses and did not engage in "underhanded" behavior.

Dongfan Chung, a Boeing engineer arrested in February for allegedly passing classified space shuttle and rocket documents to Chinese officials, was accused in court documents of responding to orders from Beijing as long ago as 1979 -- making him a second alleged longtime agent.

Yesterday, federal prosecutors in Chicago indicted a software engineer for allegedly stealing business trade secrets and trying to take more than 1,000 paper and electronic documents from a telecommunications company on a one-way trip to China last year.

The cases are among at least a dozen investigations of Chinese espionage that have yielded criminal charges or guilty pleas in the past year. Since 2000, Immigration and Customs Enforcement officials have launched more than 540 investigations of illegal technology exports to China.

The FBI recently heightened its counterintelligence operations against Chinese activities in the United States after Director Robert S. Mueller III cited "substantial concern" about aggressive attempts to use students, scientists and "front companies" to acquire military secrets.

Recent prosecutions indicate that Chinese agents have infiltrated sensitive military programs pertaining to nuclear missiles, submarine propulsion technology, night-vision capabilities and fighter pilot training -- all of which could help China modernize its programs while developing countermeasures against advanced weapons systems used by the United States and its allies.

"The intelligence services of the People's Republic of China pose a significant threat both to the national security and to the compromise of U.S. critical national assets," said William Carter, an FBI spokesman. "The PRC will remain a significant threat for a long time as they attempt to develop their military capabilities and to develop their economy in order to compete in today's world economy."

While military technology appears to be the top prize, the Chinese effort is also aimed at commercial and industrial technologies, which often are poorly protected, several officials said. "Espionage used to be a problem for the FBI, CIA and military, but now it's a problem for corporations," Brenner said. "It's no longer a cloak-and-dagger thing. It's about computer architecture and the soundness of electronic systems."

Calls placed to the Chinese Embassy in Washington requesting comment on recent spy cases were not returned. But Chinese officials have repeatedly denied that their country is stealing military technology. "We have reiterated many times that allegations that China stole U.S. military secrets are groundless and made out of ulterior motives," Chinese Foreign Ministry spokesman Qin Gang said at a recent news conference in Beijing, commenting on the Mak case.

But U.S. intelligence and defense officials say China has been able to use technology of U.S. origin in a new generation of advanced naval destroyers and quiet-running, stealthy submarines.

Some of those secrets may have been obtained with the help of Mak, a 67-year-old electrical engineer who became a naturalized U.S. citizen in 1985 along with his wife, Rebecca Chiu Mak. The two settled in Southern California, where Mak eventually accepted a job with Power Paragon, a defense contractor that specialized in advanced naval propulsion technology. In 1996, Mak was given a security clearance at the "secret" level, which gave him access to sensitive engineering details for U.S. ships and submarines.

In 2003, Mak became the subject of an intensive federal investigation that included court-ordered wiretaps, secret property searches and the clandestine installation of a video camera inside his home. Through surveillance, FBI agents discovered that Mak was in the process of copying thousands of pages of technical documents onto computer disks, which he arranged to send to China using his brother and sister-in-law as couriers.

According to court documents, the Maks encrypted the disks to avoid detection and used coded words to arrange a drop-off of the disks to a Chinese intelligence operative. In one phone conversation, the brother, Tai Wang Mak, intimated that he would be traveling with his wife and a third companion he described as his "assistant" -- a reference, prosecutors said, to the disks, hidden in his luggage.

The plan was foiled on Oct. 28, 2005, when agents arrested Tai Wang Mak as he was preparing to board a plane at Los Angeles International Airport. Chi Mak and his wife were arrested at their home the same day.

A key piece of evidence was a to-do list of apparent intelligence targets, written in Chinese script. The note, which had been shredded, was retrieved from Chi Mak's garbage and painstakingly reassembled to reveal what prosecutors said were instructions from Beijing on the kinds of technology Mak should seek to acquire.

Mak, who testified in his defense at his six-week trial, denied he was a spy and said the information he copied was available from nonclassified sources on the Internet. Defense witnesses said that much, if not all, of the documents acquired by Mak were not officially classified, though transmitting them to China was prohibited under U.S. export laws. Mak's attorney, Ronald O. Kaye, said his client was a scapegoat for other U.S. intelligence failures and a "symbol of the government's cold war against the Chinese."

In another recent case, former Northrop Grumman scientist Noshir Gowadia, who helped build the B-2 bomber, was indicted last fall for allegedly sharing cruise missile data with the Chinese government during a half-dozen trips to China. He is scheduled to go on trial in October.

A defense lawyer for Gowadia did not return calls, but Gowadia's family in Hawaii has told local journalists that the charges stem from a misunderstanding.

Robert Clifton Burns, a Washington lawyer who specializes in export cases, said the Chinese acquisition of sophisticated U.S. technology "is fast coming out from under the radar" as authorities crack down on such shipments to foreign powers. But Burns, who closely tracks prosecutions in the area, said the government sometimes overstates the risks of exporting U.S. items.

"People who violate export laws should be thrown in jail, no question about it," Burns said. But he added that there are also people "who would be better addressed by . . . a civil result where they get a small fine."

http://news.cnet.com/8301-1009_3-10107323-83.html

November 24, 2008 5:12 PM PST
Report: U.S. vulnerable to Chinese cyber espionage
Posted by Elinor Mills

China is actively conducting cyber espionage as a warfare strategy and has targeted U.S. government and commercial computers, according to a new report from the U.S.-China Economic and Security Review Commission.

"China's current cyber operations capability is so advanced, it can engage in forms of cyber warfare so sophisticated that the United States may be unable to counteract or even detect the efforts," according to the annual report (PDF) delivered to Congress on Thursday.  http://www.uscc.gov/annual_report/2008/annual_report_full_08.pdf

...

• China’s space architecture contributes to its military’s command,
control, communications, computers, intelligence, surveillance,
and reconnaissance (C4ISR) capability. This increased capability
allows China to project its limited military power in the western
and southern Pacific Ocean and to place U.S. forces at risk sooner
in any conflict.
• Cyber space is a critical vulnerability of the U.S. government and
economy, since both depend heavily on the use of computers and
their connection to the Internet. The dependence on the Internet
makes computers and information stored on those computers vulnerable.
• China is likely to take advantage of the U.S. dependence on
cyber space for four significant reasons. First, the costs of cyber
operations are low in comparison with traditional espionage or
military activities. Second, determining the origin of cyber operations
and attributing them to the Chinese government or any
other operator is difficult. Therefore, the United States would be
hindered in responding conventionally to such an attack. Third,
cyber attacks can confuse the enemy. Fourth, there is an underdeveloped
legal framework to guide responses.
• China is aggressively pursuing cyber warfare capabilities that
may provide it with an asymmetric advantage against the United
States. In a conflict situation, this advantage would reduce current
U.S. conventional military dominance.

The report cites news articles and testimony from U.S. officials like Col. Gary McAlum, chief of staff for the U.S. Strategic Command's Joint Task Force for Global Network Operations. It concludes that Chinese cyber attacks, authoritarian rule, and trade violations are impediments to U.S. economic and national security interests.

A spokesman for the Chinese foreign ministry, Qin Gang, said the report was misleading, impeding cooperation between the U.S. and China, and "unworthy of rebuttal," according to an article published late Monday in Secure Computing Magazine.

China is targeting government and private computers in the U.S., including systems operated by the biggest U.S. defense contractors, according to the report, which cited news articles. In 2005, hackers from China nabbed NASA files on the propulsion system, solar panels, and fuel tanks, and an aviation mission planning system for Army helicopters and Army and Navy flight planning software were stolen from the Army Aviation and Missile Command at Redstone Arsenal in Alabama, the report said.

China can access an unclassified U.S. military network called the NIPRNet (Non-secure Internet Protocol Router Network) and "views is as a significant Achilles' heel and as an important target of its asymmetric capability," according to the report. This "gives China the potential capability to delay or disrupt U.S. forces without physically engaging them--and in ways it lacks the capability to do conventionally."

The U.S. government also is at risk as a result of the global computer supply chain, the commission said. Computer components used by the U.S. and manufactured in China are "vulnerable to tampering by Chinese security services, such as implanting malicious code that could be remotely activated on command and place U.S. systems or the data they contain at risk of destruction or manipulation," the report said. Hundreds of counterfeit routers made in China were found in systems throughout the Defense Department, it said.

The Chinese government is training citizens in cyber operations at military academies, and tolerates, or even encourages, actions taken by an estimated 250 hacker groups there, the report said.

Chinese military officials believe the U.S. is doing cyber espionage against China, and believe that by striking first with a cyber attack they can plant misinformation and hide their tracks, according to the report.

U.S. officials and lawmakers have complained about specific incidences where they believed Chinese representatives breached their systems. This summer, two congressmen who have been longtime critics of China's human rights record accused China of compromising computers that had information related to political dissidents. In the spring, government sources told the Associated Press that they were looking into allegations that Chinese officials copied data from a laptop left unattended in China by the commerce secretary

Who is WILLIAM A. REINSCH?

http://news.muckety.com/2011/03/08/bill-reinsch-lobbyist-activist-and-federal-appointee/30971


http://www.uscc.gov/about/commissioners/reinpg.php

William A. Reinsch was reappointed to the Commission by Senate Majority Leader Harry Reid for a fifth term expiring December 31, 2009.
Prior to joining the National Foreign Trade Council, Reinsch served as Under Secretary for Export Administration in the U.S. Department of Commerce. ... Chairman William Reinsch was reappointed to the Commission by Senate Democratic Leader Harry Reid for a term expiring December 31, 2011 and elected Chairman for the 2011 report cycle.

From 1991 through 1993, Commissioner Reinsch was a senior Legislative Assistant to Senator John D. Rockefeller IV, responsible for the senator's work on trade, international economic policy, foreign affairs, and defense.

Update:

Chairman William Reinsch was reappointed to the Commission by Senate Democratic Leader Harry Reid for a term expiring December 31, 2011 and elected Chairman for the 2011 report cycle

http://hardastarboard.mu.nu/?cat=64

William Reinsch, formerly a Clinton Administration hatchetman Undersecretary of Commerce for Export Administration, was an individual whose major asset to that misbegotten socialist regime was the willingness to commit President Clinton’s treason by proxy. Reinsch (spit! No better than a Frenchman!), came away from the corrupt leftist quagmire of the Clinton Administration with a highly respected profession in the treason industry.
http://www.jewishworldreview.com/cols/gaffney042407.php3

Reinsch had a checkered career prior to assuming his current role as Terror’s Lobbyist. For example, during the Clinton Administration, he used his senior position in the Commerce Department to facilitate and excuse China’s acquisition of an array of sensitive and even dual-use technologies, despite restrictions on such transfers.

Now, the former Commerce Under Secretary heads a trade council that favors doing business with America’s enemies and runs interference for those determined to do so. In his present role, Reinsch is working to counter citizens and their elected representatives who believe such business dealings are strategically ill-advised and morally repugnant.

Specifically, Reinsch’s trade association is mobilizing its considerable resources to help public pension fund managers, their Wall Street advisors and state treasurers fight off initiatives like one adopted last year by Illinois. It put an end to investments on the part of that state’s firefighters, police officers, National Guard personnel and other public employees in companies doing business with the Islamofascist and genocidal regime in Sudan.

Not too many decades ago, a scumbag like William Reinsch would have been publicly branded the traitor he was and dealt with accordingly. Today, well…

An August, 2006 article by Charles R. Smith serves as a reminder of Reinsch’s officially sanctioned yet criminal activities under Clinton. {Scroll down to Clinton’s Chinagate Scandal, though the entire link is profoundly well worth reading} http://archive.newsmax.com/archives/articles/2006/8/28/92737.shtml


It should come as no surprise that the NFTC {my note, National Foreign Trade Council} is headed by Clinton-era former Under Secretary for Export Administration, William Reinsch. Reinsch claims, in his NFTC bio, that he “administered and enforced the export control policies and anti-boycott laws of the U.S. government and monitored the condition of the nation’s defense industrial base.”
Reinsch may claim to have “administered and enforced,” but his record from the Clinton years shows that little of either was in place at his office. During his term at the Department of Commerce, Reinsch oversaw the greatest military technology transfer to the Chinese army in U.S. history.

The Chinese army managed to obtain, steal, or buy supercomputers for nuclear weapons research, missile warhead guidance systems, missile nose-cone software, radiation-hardened chip technology, encrypted satellite communications, and Synthetic Aperture Radar systems.
The list of advanced military technology that passed through Reinsch on its way to Beijing is too long for this article. It would not surprise me to find that Bill Reinsch has several awards waiting for him if he should ever visit PLA headquarters.

Suffice to say that the NFTC could not have selected a more qualified individual if it is their intent to transfer whatever technology – military or otherwise – to China for hard, cold cash.
I once confronted Reinsch after a congressional hearing on secure communications. During that meeting, he denied that he had anything to do with the export of advanced encryption satellite technology to the Chinese military. At that point, I presented him with copies of documents showing that he was not only a major player; he also authorized the sale of precisely that technology directly to Chinese military-owned companies.

In any of the countries Reinsch supports more than he does the United States, a citizen like him would likely have been brought before some general or other whose only comment would have been, “Tek heem out and shoot heem!”

by Seth @ 5:04 am. Filed under Traitors To America,


http://archive.newsmax.com/archives/articles/2006/8/28/92737.shtml

Deadly Dealings: Missiles From China to Hezbollah
Charles R. Smith
Monday, Aug. 28, 2006

The Israeli war against Hezbollah (round one) brought with it the realization at the highest levels that dangerous weapons were floating around in dangerous hands. The successful attacks against a cargo vessel by Hezbollah, using Chinese-made C-802 cruise missiles, raised alarm bells all over the globe.

Immediately after the attack, the first alarm bell rang at CIA headquarters, where an intensified global intelligence operation to track weapons deliveries was started. The CIA began to track Iranian efforts to resupply Hezbollah with more Chinese-made C-802 missiles.

According to reports, the CIA discovered that an Iranian Il-76 cargo plane, loaded with another Chinese-made missile launcher and up to eight C-802 missiles, was being prepared to fly to Syria. The weapons on board were for Hezbollah. Officially, the Iranian cargo plane was carrying medical and other non-military aid to help innocent victims of war inside Lebanon.

....
Clinton Chinagate Scandal


It should come as no surprise that the NFTC is headed by Clinton-era former Under Secretary for Export Administration, William Reinsch. Reinsch claims, in his NFTC bio, that he "administered and enforced the export control policies and anti-boycott laws of the U.S. government and monitored the condition of the nation's defense industrial base."


Reinsch may claim to have "administered and enforced," but his record from the Clinton years shows that little of either was in place at his office. During his term at the Department of Commerce, Reinsch oversaw the greatest military technology transfer to the Chinese army in U.S. history.


The Chinese army managed to obtain, steal, or buy supercomputers for nuclear weapons research, missile warhead guidance systems, missile nose-cone software, radiation-hardened chip technology, encrypted satellite communications, and Synthetic Aperture Radar systems.

The list of advanced military technology that passed through Reinsch on its way to Beijing is too long for this article. It would not surprise me to find that Bill Reinsch has several awards waiting for him if he should ever visit PLA headquarters.


Suffice to say that the NFTC could not have selected a more qualified individual if it is their intent to transfer whatever technology – military or otherwise – to China for hard, cold cash.


I once confronted Reinsch after a congressional hearing on secure communications. During that meeting, he denied that he had anything to do with the export of advanced encryption satellite technology to the Chinese military. At that point, I presented him with copies of documents showing that he was not only a major player; he also authorized the sale of precisely that technology directly to Chinese military-owned companies.

Reinsch turned very pale and literally ran from the room. Since then he has refused to answer any of my questions and failed to return any calls.

http://www.dnaindia.com/report.asp?newsid=1213993&pageid=0

Indian infotech sector is main focus of Chinese spying
Monday, December 15, 2008
Josy Joseph

Bangalore: BANGALORE: A few months ago, a major Bangalore-based infotech company lost out on a $8 million contract. The company was expecting a business delegation to visit India before signing the contract, but 15 days before the date set for the deal, the meeting was abruptly called off.

The same team went to China instead. When the Indian firm investigated the matter, it discovered a gaping hole in its security. The computers of several of its top executives had been compromised by Chinese hackers and privileged information leaked to a Chinese competitor, who walked away with the deal by quoting a lesser price.

Welcome to war of another kind - corporate espionage. Chinese companies are increasingly spying on the Indian IT industry, the only major business area where India leads the Chinese by several years. With many companies reportedly becoming victims of Chinese espionage, Indian intelligence officers are beginning to take a close, hard look at the influx of Chinese nationals into Bangalore, India's IT hub.

The Chinese presence in the Bangalore-Mysore belt largely comprises students in Mysore University. Besides, there are several Chinese citizens who are training or working at Indian IT firms.

Intelligence officers are probing whether the sudden surge of Chinese interest in
Bangalore and Mysore is part of a larger game plan to steal India's IT advantage through massive industrial espionage. The main aim, obviously, is to replicate Indian IT's successes in mainland China, grab major contracts, and gain the upper hand in a hostile future competitive scenario.

Investigators are tight-lipped on the progress of their inquiry. But a source says they are looking at parallels between the presence of Chinese nationals in Karnataka and what has been reported about Chinese espionage in industrial complexes around the world.

Across Europe, Australia, and US, many espionage cases involving the Chinese have been reported at industrial clusters and cutting-edge firms. In most of these cases, investigations have revealed the key role played by Chinese students and workers in obtaining information for firms and institutions back home.

Recent instances of Chinese hacker attacks on major Indian IT companies only serve to illustrate the seriousness of the threat. The top brass of one IT firm were unnerved when they landed in China and discovered that their hosts knew everything about their plans. The Chinese knew what their proposed branch intended to do, what salaries would be offered to locals, the number of jobs on offer, et al. "The Indian officials were surprised and came back to carry out a security audit," said the source. "They found that their computers had been compromised for a long time."

Investigators suspect the Chinese are probably using their traditional network of students, workers, and tourists to extract sensitive information and gain access to any next-generation technology that Bangalore firms may be working on. "It may have started with Huawei Telecom, but today many Chinese firms have a presence in Bangalore," said security analyst Rahul Bhonsle, an ex-army officer who, way back in 2000, wrote about the threat to the IT sector from China. "Some of them are definitely fronts for intelligence operations."

Over the past two years, the government has rejected several of Huawei's proposals, including a deal with MTNL, citing security concerns. In 2006, a high-powered government committee had recommended that no Chinese investment be allowed in critical sectors.

"In tomorrow's asymmetric information warfare scenario, it [a critical presence in India's IT sector] would give them a great advantage," said Bhonsle. "Besides, it is possible for a sleeper to wreak havoc in, say, some banking software created by an Indian firm and deployed with an international banking major."

Investigators are also beginning to look at a significant number of joint ventures, collaborations and other work relations being built up between Indian IT firms and Chinese companies. "Many of them could be just a cover for industrial espionage," said a source involved in the investigation.

http://abclocal.go.com/wls/story?section=news/local&id=6228552

Woman accused of spying for China at Motorola
Wednesday, June 25, 2008 | 10:55 PM

By Chuck Goudie(WLS) -- A Chinese spy was caught "red-handed," according to federal authorities, as she was about to board a plane at O'Hare bound for Beijing.
Hanjuan Jin says she worked as a computer engineer for Schaumburg-based Motorola, a global leader in communications technology.
Federal agents say Jin was also working as a spy for a Chinese company, and she has been charged in a corporate espionage case that reflects a growing national security problem.
She doesn't look much like the villainess in a James Bond film. But the FBI says 37-year-old Hanjuan Jin played the spy role in real life.

Jin, a Chinese-born American citizen and graduate of the Illinois Institute of Technology, had been working at Motorola headquarters in Schaumburg since 1998. She was a software engineer, living in a comfortable townhouse not far from her job.
Two years ago, according to a federal indictment handed up in April, Jin went on medical leave from Motorola.
Despite claiming to be deathly ill, investigators say, she traveled from Chicago to Beijing where she agreed to work for a Chinese tech company that allegedly recruited her to steal Motorola secrets."The federal government is saying basically that you're a corporate spy. What about that?" the I-Team's Chuck Goudie asked Jin.
"No, I'm not. I'm not. I'm not," she responded.
"You're not a spy?" Goudie asked.
"They made a mistake," Jin said.
According to the indictment, a Chinese executive told Jin, "You should share in the fruit of our collective effort," once she'd stolen top-secret Motorola files, schematics and military communication plans.
When Jin returned to Motorola from medical leave in February of 2007, authorities say, she did just that, downloading hundreds of confidential documents from the company's supposedly secure internal network, including documents related to public safety organizations in Africa, the Middle East and Europe.
Two days later, she arrived at O'Hare Airport with a one-way ticket to Beijing.
"What were you doing at O'Hare Airport with a one-way ticket to China?" Goudie asked.
"No, I go to visit my mom. My husband and my mom are China," she said.

Hanjuan Jin was just a few steps away from boarding a United 747 non-stop to China. It was only a routine check of passengers by customs agents that revealed she was carrying $30,000 in cash after declaring she had only $10,000.
"Why were you on a one-way ticket?" Goudie asked.
"Because I can buy it cheaper to China," Jin said.
"They say you're a spy," Goudie said.
"They say that, but it's not true. They make mistake. They're paranoid. They wrongly accuse me. I have fatal disease," Jin said.
"What is the fatal disease?" Goudie asked.
"I have TB and meningitis," Jin said.
"You have tuberculosis?" Goudie asked.
"I almost died," Jin responded.
During the search of Jin and her bags at O'Hare, federal agents say they found a laptop computer and more than 30 compact data storage devices containing stolen Motorola files.
Jin told Goudie the files had been given to her by a supervisor at Motorola to refresh her memory from the medical leave.
"He assigned me too much work. I couldn't do it," Jin said.
"So you were gonna take and do it in China?" Goudie asked.
"That's OK," Jin responded before getting into a car.
On its Web site, Motorola touts the company's internal security but declined an invitation from the I-Team to explain how an employee just off medical leave could nearly board a plane to Beijing with $600 million in corporate secrets. That is Motorola's own estimate quoted by the FBI.
In a brief, generic statement, Motorola cited its "extensive policies, procedures and training in place to protect the security and confidentiality of the Company's intellectual property."

Motorola isn't alone. This month, Illinois Senator Dick Durbin asked for an investigation of whether senate computers are among dozens of government devices hacked into by the Chinese. And national security agencies are now warning all Americans attending the Beijing Olympics this summer to leave cell phones and laptops at home because, they say, there is a 100 percent likelihood that Chinese agents will scan and steal the contents.
The FBI, apparently unimpressed by American corporate security, recently increased counterintelligence against Chinese infiltration of U.S. companies. FBI director Robert Mueller says he has "substantial concerns" that China is using scientists, students and "front companies" to steal U.S. military secrets, and that poses a threat to our national security.
In the past year, there have been at least a dozen criminal cases of Chinese espionage brought in the U.S.

Seven years to prosecute?

http://tech.blorge.com/Structure:%20/2008/11/22/real-life-chinese-spy-case-ends-in-silicon-valley/

November 22, 2008 | Real life Chinese spy case ends in Silicon Valley
By Michael W. Jones


The new James Bond film may be wowing audiences in theaters, but industrial espionage in Silicon valley is making headlines. Two Chinese nationals were sentenced to one year each in Federal prison on Friday. The sentencing hearing marked the end of a seven-year-old case involving the theft of chip designs from Valley manufacturers, destined for use by mainland China chip manufacturers.

According to the AP, the two were the first people convicted of the most serious crime under the Economic Espionage Act (EEA) of 1996. The first defendant was Fei Ye, a United States citizen. The second was Ming Zhong, who is a permanent resident of the United States. They were both accused, under the EEA, of attempting to provide economic benefit to China via the chip designs that they had stolen. The prosecutors in the case stopped short of alleging that the Chinese government was are of the activities of Ye and Zhong.

The two defendants were arrested in 2001 at the San Francisco International Airport, trying to board a flight to China with luggage containing sensitive design documents describing how to manufacture specific computer chips. The documents had been taken from four Silicon Valley manufacturers for whom the pair had worked. The firms from whom the secrets had been stolen were NEC Electronics Corp., Sun Microsystems Inc., Transmeta Corp. and Trident Microsystems Inc.

At the time of their arrest, Ye and Zhong were also carrying documents showing that they had been working with Chinese government agencies who would be providing funding for the Chinese start-up venture they were planning. The  Economic Espionage Act was used in the prosecution because the combination of evidence strongly suggested that the abilities of China in the area of chip manufacturing would have been substantially advanced by the information stolen by Ze and Zhong.

The two could have been sentenced to as much as 30 years each for the crimes, but prosecutors asked for the one-year sentences passed down because the two industrial spies had cooperated in the investigation of the charges.

Well with the naming of Leon Panetta as CIA director and Hillary CLinton as Sec. of State and the old Clinton Justice dept. crew in place, there is almost no doubt that Chinese espionage will now be emboldened once again... for your enjoyment Congressional record of the COSCO arms and Long Beach Naval shipyard sale to the the Chinese...

No one guarding the hen house now....

http://www.fas.org/irp/congress/1997_cr/h970415-cosco.htm

COSCO: A COMMUNIST CHINESE-OWNED COMPANY (House of Representatives - April 15, 1997)

[Page: H1534]
The SPEAKER pro tempore (Mr. Taylor of North Carolina). Under the Speaker's announced policy of January 7, 1997, the gentleman from California [Mr. Cunningham] is recognized for 60 minutes.

Mr. CUNNINGHAM. Mr. Speaker, I do not plan to take the whole time. My colleagues just spoke on the issue of our generation and future generations on taxation, and as important as it is, I feel it is very important that we bring up another subject. That is the subjugation of the United States by a Communist-owned company, and control of.

What I would like to do tonight is talk on the facts. Those facts are based on when I served in the U.S. Navy, I served on 7th Fleet staff and was responsible for all Southeast Asia countries, the defense of, not only in the training exercises, but in the real world threat.

For example, in Team Spirit in Korea, we ran exercises involving our allies in the defense of Korea. That involved our reserves, that involved all of our friendly assets that we had to bear if North Korea came across a line. But at the same time, I had access to some 13 linguists that monitored North Korea's frequencies to give us an idea of real threats.

For example, my last year there, the two Mig 21's came over across the line and defected, and we were responsible for that as well. While at Navy Fighter Weapons School my job was to plan and coordinate not only offensive but defensive impacts and invasions of Southeast Asian countries, so I come tonight with experience and fact. I would like to give those tonight to the Speaker to make his decision, as I hope the American people do.

Cosco is a Communist-owned, Communist Chinese-owned company. Its purpose is ship containers in and out of major ports all over the world. Recently, California has been devastated by the President's defense cuts. We have lost over 1 million jobs. The additional BRACC cuts in base closings and realignments have cost thousands to millions of jobs in the State of California. The people of Long Beach have lost thousands of those jobs, as we did at Kelly Air Force Base, as we did at El Toro and Miramar, and the shifting of different assets.

In that process, the people of Long Beach are looking for help. They have mouths to feed just like anyone else. They have children to send to college. They have been devastated from these cuts in national security in base realignment and closures.

What I plan to show tonight is a direct link between the White House fundraising with China and assets that have gone in favor of Communist China that could pose as a national security threat to the United States. I have intelligence reports that state so. I have facts that also state so, and I would like to make that case this evening.

First, Mr. Speaker, let us look at Long Beach perspective. Again, people have been devastated. They are without jobs, and they need help.

Mr. Speaker, I would say that all of my colleagues on both sides of the aisle that are opposed to a Chinese Communist company taking over Long Beach Naval Air Station would be more than willing to do everything we can to help Long Beach recover those jobs, but not to a Communist-controlled nation of the Chinese Republic.

Cosco's ships fly flags of the People's Republic of China. The port lease with Cosco will provide Cosco with its own terminal. Major imports from China to Long Beach include toys, sporting goods, footwear, apparel, electrical parts, and machinery.

But Mr. Speaker, that is not all. Last year, it was Cosco that delivered to the State of California 2,000 AK-47's. The company that builds the AK-47's, the company that negotiates the trade of AK-47's around the world, the company Cosco, all set up by the PRC, the People's Republic of China, owns. They do not report to department heads. Their CEO is Communist China, all owned and coordinated and controlled by Communist China. Yet, they delivered over 2,000 AK-47's into our country, with the intent of selling these arms to our inner cities to disrupt, to disrupt our inner cities, and disrupt our political environment within the United States of America.

At the same time, the Clinton White House accepted both Cosco and the gunrunners themselves in a White House coffee. I will later show the direct tie between the $366,000 that was conducted to the DNC by the White House recipients and Chinese investors to allow Cosco to gain this favored status.

Long Beach Naval Shipyard closed as a result, as I said, of the additional base closures and lots of jobs were lost. We have a long way to protect those. I would also like to point out that during the bid to reclaim Long Beach Naval Shipyard, the marines lost a bid for the site to a China Cosco firm, and I quote from the Washington Times:

Several officers in the Marine Corps have raised questions about why the Clinton administration favored turning over a military base in Long Beach, CA to the Chinese ocean shipping company, Cosco, over the protest of marine reserve battalion made homeless by the 1994 Northridge earthquake. Briefings on the firm fail to convince many of its members. The CIA, the Office of Naval Intelligence, and the Coast Guard reinforced the view that Cosco's strong link with the Chinese Government is a fatal flaw in its proposal to deliver the base to a company.

Mr. Speaker, there is a current report, an updated report from the FBI, that states that Cosco is currently actively involved in placing intelligence officers, spies, in all of their ports of call. That is a national security interest.

Cosco has enjoyed a 15-year access to Long Beach Naval Shipyard. I have no problems with that. My problem comes with Cosco taking over complete control of the 145 acres in which they will control access of

every ship there. Every cargo container that comes off there, they will place it. They will have control of who sees where that cargo goes, where it is stored, what time of night it goes out, and who receives it.

Mr. Speaker, if we give China that opportunity, we are going to see an increase of illegal aliens in which two Cosco ships forced, in the last Congress, two ships owned by Cosco shipped in illegal aliens, the Chinese, it was in the newspapers, along with the AK-47's. At the same time, you remember it was a Cosco ship that plowed into the port recently and nearly devastated the port in another U.S. facility.

We cannot discuss the actual details of that intelligence briefing as it would not be prudent and it was a classified briefing. But I want to mention that two of the representatives that represent, and I understand their needs, they represent the people that are looking for jobs, one of those individuals stated that, and I quote, `All intelligence agencies that briefed us have assured us that Cosco represents no threat to our national security.'

I want to tell you, Mr. Speaker, it is an untruth, the fact that the same intelligence briefers, the CIA, the National Security, the Coast Guard, have all stated that no such comment was ever made and ever intended. And as a matter of fact, they were very, very upset at the dear colleague press release.

Why? Because they stated that this is a policy issue for them to discuss, and they would never say that there is a national security interest, nor would they say that there is not.

So I would submit that is not the case and that after careful deliberation of experience that there is a national security interest.

Let me go through some of the facts. The national security of the United States is a responsibility of Congress and the President, not the city of Long Beach.

Cosco has been attendant at Long Beach since 1991. The proposed lease agreement would turn over 145 acres of port property and grant Cosco a much more significant presence at that port, which I have discussed.

Cosco ship, Empress Phoenix, had attempted to smuggle in some 2,000 AK-47's fully automatic assault weapons, the same kinds of weapons, Mr. Speaker, that were used in the bank holdup in Los Angeles that placed our law enforcement agents in great jeopardy, the same companies in port at which we recently found down off the border, M-2 fully automatic weapons going to Mexico to disrupt their elections which are going to take place over the next 90 days and cause anti-American, antireform legislators and affect the elections in Mexico City. That the Chinese regime is not steadily a U.S. ally.

On January 24, 1996, the New York Times reported warnings by the former Ambassador, Charles Freling, quoting a Chinese official that China would intimidate Taiwan because U.S. leaders would care more about Los Angeles than they would Taiwan.

When the U.S. fleet started to go through the straits, when communist China started shelling Taiwan and missile attacks, the Chinese responded as we started to enter our fleet that either we withdraw or the threat of nuclear warfare on the city of Los Angeles.

Now, let's take a look at a Communist-owned and controlled facility in Long Beach Naval Shipyard. Hutchinson Group, also owned by Communist China, recently purchased both ends of the Panama Canal. This would give the Chinese control of the Panama Canal, it would give them control of Long Beach Naval Shipyard, and all of the access to and from and who sees what and where it goes. We feel that this would be a major national security threat.

Mr. Speaker, let us take a look at why economically China would want to do this. There is a study coming out by the military. China's number one import from the United States is wheat.

Why, Mr. Speaker, does not China or other cargo-containing vessels go around the horn instead of using the Panama Canal? Primarily, it has affected seagoers for centuries, the weather is bad and the threat of lost ships.

If they own both ends of the Panama Canal, the major export of wheat out of the United States to China is controlled through Long Beach Naval Shipyard, they could control economically price fixing of all of our exports going out of our major port at Long Beach. And we feel that this is also an economy threat as well as a military security threat.

According to the New York Times, Chinese officials had conveyed an ominous message to Anthony Lake, President Clinton's national security adviser, just weeks earlier: `The possibility that American interference in Beijing efforts to bring Taipei to heel could result in devastating attack on Los Angeles.'


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[TIME: 2245]

San Diego Union Tribune, March 31, 1996.

Panama Canal, one of the most strategic locations on the globe, has been brought under COSCO's web. Hutchinson Port Holdings Incorporated, a Hong Kong operated, controlled, again by a corporation, by Chinese Communists with direct ties to the Pacific and Atlantic entrances to the Panama Canal and global, syndicated columnist, Georgie Anne Geyer, Universal Press Syndicate, March 26, 1997.

At the same time, Mr. Speaker, we lost the Panama Canal, both ends of it, to Communist China owned companies. We had an American company from Alabama that bid on those same sites. They won the contracts for both of those sites. It was selected by Panama. After selection, after announcement, the Chinese government went in with sacks of cash, much like they did with our government here in the United States, and said, here is $25,000 for you, here is another $25,000 for you. And guess what? That decision was reversed and it went to Chinese Communists instead of a U.S. based firm. Johnny Chung, a Chinese American businessman from California, gave $366,000 to the Democrats, the DNC, that was later returned on suspicion it illegally came from foreign sources. Chung brought 6 Chinese officials to the White House last year to watch President Clinton make his weekly radio address. One of the 6 was the advisor from COSCO who was later given by the President access to Long Beach shipyard and also the actual gun runners that were there in the White House gave money to the DNC.

The chairman of one of these two Chinese arms companies implicated in the scheme to smuggle the 2,000 illegal Chinese-made weapons into Oakland aboard COSCO's ship had coffee in the White House in an affair associated with D.C. fundraising. Officials of the weapons company were indicted for shipping those arms.

I would reiterate, Mr. Speaker, the company that shipped it, the company that made the rifles, the company that were the arms dealers are all owned by a CEO called Communist China. So what if we turn over a port to COSCO, complete control of a Communist Chinese operated state. We will have illegal immigrants come into the United States. We will have an increase of drugs come into the United States. We will have an increase of Chinese intelligence officers within the United States on our borders, and it could prove a devastating national security issue.

On the campaign trail last year and in a White House meeting in 1995, President Clinton endorsed the proposal to transfer land of the Long Beach Naval shipyard to COSCO, but it was this March, 1995, the White House radio address that had critics talking. A COSCO advisor was among the Chinese businessmen invited to hear the President in the oval office just two days after a California businessman, Johnny Chung, made a $50,000 donation to the DNC and hand-delivered it to Mrs. Clinton's chief of staff Margaret Williams, CBS Evening News, March 11, 1997.

Shortly after the Long Beach Naval shipyard land transfer was arranged, the Clinton administration helped arrange, listen to this, Mr. Speaker, in the President's budget that he submitted, he gave free, no strings, gave to Communist China $50 million to burn a coal burning plant, after these meetings and after these DNC fund-raisers from the Chinese. He can cut impact aid for education, but he can also give $50 million to Communist China in the name of trade and just give it. That is not fair trade.

He also gave a multimillion dollar loan to build 5 Communist Chinese ships, COSCO ships, in a nonrecourse loan. What that means, Mr. Speaker, this is a loan of some $137 million, which may not be much to many Members around this body, but you ask the American people, $137 million of their taxpayers' dollars back up a nonrecourse loan to Communist China, a state-controlled company by Communist China, and if they forfeit, who is left holding the bag? The United States taxpayers. Our own ship builders do not have access to this type of loan, Mr. Speaker. Incredible. But yet the administration gives Communist China.

Over the past year a COSCO ship plowed into New Orleans boardwalk injuring 116 people and 6 COSCO ships were denied or detailed for violating international safety regulations by our Coast Guard. This is since January, COSCO has violated by the Coast Guard and had 6 violations since January and declared as an unsafe company, not only for plowing into the pier at New Orleans and devastating that pier, causing millions of dollars in injuries, but for the other violations as well.

COSCO was fined for paying kickbacks to shippers instead of abiding by tariffs. This is, again, a Chinese-operated company that was cited for giving kickbacks, payoffs for access.

We want to make it clear that we do not mean any ill will toward the people of Long Beach. As a matter of fact, we will do everything we can to restore the jobs that they lost in the BRACC closures and defense cuts. My colleagues on both sides of the aisle that are opposed to COSCO taking over this port will do that and do so vigorously.

COSCO's track record, if they were a company owned by some of our greatest allies, Great Britain or others, I would not want them in my backyard for the violations. But I would say this, if they want to stay as a tenant of Long Beach and not have total control and access of a former national security base, most of us would support that, Mr. Speaker.

Our problem, again, is giving them total access to a security base that controls entry of illegals, of drugs, of illegal arms and intelligence officers and could pose an economic and national security threat.


[Page: H1536]
Mr. Speaker, President Clinton took a personal role in promoting the interests of COSCO. At the same time he was cutting over 100 warships from the U.S. fleet, drawn up by the Bush administration, a 23 percent cut. The symbolism could not be anymore stark.

Richard Fisher, senior policy analyst with the Asian Studies Center of the Heritage Foundation, noted the real security concerns of Long Beach Steel in a Washington Times column on April 13. His main point is given below.

If it so desires, the Chinese leadership can direct that COSCO assets be put at the disposal of the People's Liberation Army, the PLA, or the main espionage organ, the Ministry of State Security, the MSS. Do we really want a subsidiary of the People's Republic of China, a future superpower, to have such large presence at a port on our own coast, one of the only two West Coast ports with a dry dock large enough to repair our aircraft carriers?

Mr. Speaker, I would say that we do not. It is one of the reasons that the gentleman from California [Mr. Duncan Hunter] and I offered a bill to stop this takeover by a Communist power of U.S. territory.

The Clinton administration, and I would like to go through this step by step, it is not enough that there is a national security interest, but the Clinton administration and the China connection is very complicated. Unless you go step by step through it on how the various pieces seem to fit together, it is difficult to draw any special direction.

Webster Hubbell, John Huang, Johnny Chung, Charles Yah Lin Trie will be discussed. The other incidences of Roger Tamraz, a felon, Susan McDougal, White House and DNC Immigration and Naturalization Service, Arapaho Indian Tribe, Oklahoma fundraising--all of these I will not discuss, Mr. Speaker, because they do not have a direct tie, although indirectly, to the Chinese taking over a shipyard in Long Beach. I would like to go through and show how devastating the empirical indictment of a conflict of interest between the White House and Long Beach Naval Shipyard.

Let me first start with a family called the Riady family. The Riady family is based in Indonesia, controls a $12 billion financial empire operating under the umbrella of the Lippo Group. The family patriarch, one son, Stephen Riady has served as Lippo chairman since 1991. James Riady lived in Arkansas in the 1980's and there came to know then Governor Bill Clinton. The Riady family has an unusually big stake in maintaining most-favored-nation status for China since Lippo maintains enormous investments in Hong Kong, which is also the company that Mr. McDougal worked at.

The China connection. A Justice Department investigation into improper political fundraising activities has uncovered evidence that representatives of the People's Republic of China sought direct contributions from foreign sources to the DNC, the Democratic National Committee, before the 1996 Presidential election.

Mr. Speaker, our intelligence--the FBI and CIA--warned Janet Reno directly that China was attempting to influence the White House in policy decisions through campaign finance reports, much like they did in the port that we just talked about, by giving cash donations.

The Justice Department task force has discovered that in early 1995, Chinese representatives developed a plan to spend nearly $2 million to buy influence in Congress, this body, and the Clinton administration, and investigators are apparently trying to determine if any of that money was received by John Huang, Charlie Trie, among others. So the FBI has given us warning and the CIA that the Chinese are trying to influence our Government to make decisions in their favor. And then the Clinton administration gives them a $50 million coal burning plant, gives them a $127 to $137 million loan to build Chinese Communist ships. Then they give them access to Long Beach Naval Shipyard and complete control of it. We think that there is a direct problem.

John Huang, the Commerce Department and Lippo. John Huang, with no background check, with no background check, received top-level security clearance for work at the Commerce Department while still working for Lippo. This, despite Mr. Huang's ties to a Lippo bank that was ordered to cease and desist money laundering and despite Lippo commercial ties to China and its intelligence services, was granted access to top level intelligence services within the White House.

President Clinton attended a September 13, 1995, White House meeting with John Huang, James Riady of Lippo Bank, Bruce Lindsey, and C. Joseph Giroir, the lawyer who hired then-Governor Clinton's wife, Hillary Clinton, to the Rose Law Firm and who is now doing Riady business in China.


[TIME: 2300]

It was at that meeting that the transfer of Huang from the Department of Commerce to the DNC was arranged. A January 13, 1997, letter from the Commerce Secretary Mickey Kantor says that Mr. Huang got a weekly intelligence briefing centered on the People's Republic of China and the materials related to those briefings were under the control of the CIA. And again there was no security clearance whatsoever, although they were warned, the administration, that this man had ties to Communist China.

Senior White House aides learned that Commerce Department officials had concerns about John Huang in mid-1995, several months before the White House helped place him in a sensitive fund-raising job in the DNC, the Democratic National Committee. People at the Commerce Department itself described Mr. Huang as `bad news.'

According to several people familiar with the matter, officials at the Department were worried that Mr. Huang's government work posed a conflict with his past employment with Lippo and direct ties with Communist China.

In his second week on the job at the Commerce Department, Mr. Huang and Webster Hubbell, who has recently been in the news and who was then employed by Lippo, met for lunch in Washington. At the time, according to the internal White House documents, administration officials were monitoring Mr. Hubbell's cooperation with the Whitewater independent counsel. That evening, Mr. Huang joined Mr. Riady and Mr. Clinton at the President's birthday party.

It is no secret that these were some of the individuals that gave Mr. Hubbell over $500,000, quote, as a friend.

John Huang received 37 CIA-documented intelligence briefings at the Commerce Department, saw more than two dozen intelligence reports, and made over 70 phone calls to a Lippo-controlled bank in Los Angeles, his former employer.

Mr. Huang's message slips from the Commerce Department also showed calls from one Chinese Embassy official in February 1995 and three calls from the Embassy's commercial minister in June and August of that year.

Mr. Huang's desk calendar entries had three meetings scheduled with Chinese Government officials. He attended policy breakfasts at the Chinese Embassy in October 1995 and visited the Indonesian Embassy on October 11, 1995.

In March, President Clinton, after this meeting in Indonesia by Mr. Huang, in March 1996, President Clinton reversed a key administrative policy on immigration following a $1.1 million Asian fund-raising dinner, the most successful Asian-American political fund-raiser in United States history. Held the previous month and organized by, who else? John Huang, a former employee of Lippo.

President Clinton had previously opposed the practice of allowing foreign-born siblings of naturalized U.S. citizens to come to the United States, based on recommendations of a commission he appointed himself, and affirmed his desire to halt immigration in an early 1996 letter to the Speaker of the House.

But in March 1996, President Clinton made a last-minute about-face, after the Indonesian meeting with Mr. Huang and after the fund-raising of $1.1 million, and reversed his position and put top priority recommendations made in a strongly worded John Huang memorandum to Bill Clinton. And then, and now former, Senator Alan Simpson said: I never in 18 years in Congress, and I quote, saw an issue that shifted so fast and so hard.

After receiving $1.1 million from Indonesia, Mr. Huang began aggressively arguing for U.S. trade policy toward Vietnam only 1 day after joining the Commerce Department, and again with no security clearances whatsoever or background check, in July 1994, and pushed the idea for the next 17 months when Lippo Group sought to expand its investment empire into Vietnam itself. He also attended interagency meetings of an Indonesian working group. The next month, a United States trade mission to China resulted in a $1 billion power plant that Lippo would finance and benefit from. This is at the same time when the President agreed to give Communist China $50 million for a Chinese coal-burning plant.

In 1992, Candidate Clinton described as unconscionable Indonesia's treatment of the East Timorese, 200,000 of whom had perished since Indonesia had annexed East Timor 20 years ago. The administration even supported the United Nations resolution criticizing Indonesia's East Timor policy. Around the same time, Mark Grobymer, an Arkansas lawyer who golfs with Mr. Clinton, joined Mr. Huang and Mr. Riady on a trip to East Timor. In April the three men visited Mr. Clinton, and, guess what? The President reversed his position. Human rights activists claimed the administration's concern for Timor would be looked into.

John Huang helped raise $425,000 from an Indonesian couple whose primary bread earner was as a landscaper. When it was looked into, and that checks were made concurrently by the same source and it was brought up to the press, the DNC returned the money.

John H. K. Lee, of Cheong Am America, United States subsidiary of a South Korea company, gave $250,000 in illegal contributions to the DNC following a private meeting with President Clinton, and arranged by guess who? John Huang. The money was returned following a press story.

Mr. Speaker, what I am trying to show is that there was a direct link between fund-raising of foreign powers and the takeover of a national security base, Long Beach Naval Shipyard, by the Communist Chinese. And that if we allow this to happen, that in the interest of national security and economic security, that this administration has sold itself out to fund-raising interests from overseas.

On March 9, 1995, Margaret Williams, Chief of Staff to Hillary Clinton, accepted a $50,000 donation to the Democratic party from Johnny Chung, a California businessman who emerged as a central figure of the Justice Department and congressional investigations into Democratic fund-raising. Mr. Chung made a $50,000 donation to Democrats the same week as he escorted COSCO and also the gun runners that were there at the White House, a $50,000 donation to the DNC from these groups.

After that visit, President Clinton told his aides that he was not sure we want photos of him made with these people circulating around, end quote.

Mr. Chung told Mrs. Williams earlier in the administration that he wanted to give money to the Clintons personally, sought to exploit his contributions to excess commercial gain. Associates of Mr. Chung have said that he used his political access to submit business deals with investors from China, Taiwan and Hong Kong, bringing them to the White House events for fund-raisers.

National security warnings ignored: Robert L. Suetting, a Chinese specialist on National Security Council, warned that Mr. Chung was quote a hustler who appeared to be involved in setting up some kind of

consulting operation that will thrive by bringing Chinese entrepreneurs into the town for exposure to high level United States officials, that is, COSCO.

Three months later Mr. Suetting expressed concern to Anthony Lake, who was at the time President Clinton's national security adviser, after the White House learned that Mr. Chung was leaving for China and planned to get involved in the sensitive case of imprisoned Chinese dissident Harry Wu.

Mr. Chung visited the White House 51 times, records show. Twenty-one of these times he was cleared for entry by the office of the First Lady. Mr. Chung made 17 visits to the White House after the April 1995 Committee on National Security memorandums identify him as a hustler and urged caution, and 8 visits after the second warning memorandum was sent to the NSC, Director Anthony Lake, in July 1995.

In March 1997, in her first extensive public remarks about the DNC fundraising controversy, the First Lady said she did not know why Johnny Chung had as much access and was spending so much time around her staff offices in the executive office building, but yet 21 of the 51 times it was the First Lady's office that granted direct access to Mr. Chung.

In March 1996, Charlie Trie, a Little Rock restaurateur and long-time friend of President Clinton, presented Michael H. Cardozo, executive director of the Presidential Legal Expense Trust, a defense fund set up for President Clinton and Mrs. Clinton to help pay their legal bills, with two manila envelopes containing checks and money orders for more than $450,000.

The fund returned about 70,000 immediately but deposited $378,300. Two months later, after the fund ordered an investigation, the rest of the money is returned. The investigation found that some of the money came from sequentially numbered money orders, supposedly from different people in different cities, and apparently signed in the same handwriting. And guess what? It was done by Mr. Trie and Mr. Huang again.

According to a defense fund trustee, Harold Ickes and Hillary Clinton had knowledge of the corrupt money and did nothing to stop the flow of it until newspaper columns and stories triggered Ickes' tip-off to the DNC that maybe Trie's fundraising would be linked to John Huang and James Riady and, yes, Mr. McDougal.

A Justice Department FBI task force investigating allegations that China may have directed contributions to the DNC, charges that the Chinese Government denies, is focusing on a series of substantial wire transfers in 1995-96 from a bank operated by the Chinese Government. The transfer, made from the New York office of the Bank of China, and usually made in increments of $50,000 and $100,000, came at a time when Mr. Trie was directing large donations, again to the DNC.

The Democratic National Committee has returned $187,000 that Mr. Trie personally contributed and plans to return another $458,000 he helped raise from others. The DNC said the donations appear to have foreign sources, which would make them illegal, and they returned them.

Some of the donors invited to the White House who participated in events with the President include: Mr. Russ Barakat, a south Florida Democrat party official who, 5 days after attending a White House coffee session in April 1995, was indicted on criminal charges and ultimately convicted of tax evasion.

A Florida newspaper was full of the stories about Mr. Barakat's problems with the law before the executive mansion get-together.

Mr. Wang Jun a Chinese businessman and the head of a military-owned arms company, while a part of the United States Government, was out investigating Wang Jun for allegedly smuggling in arms to this country, that is, 2,000 AK-47's. He was with Mr. Clinton at a White House coffee courtesy of Charlie Trie.

I will not speak about Eric Wynn because there is no tie.

Chong Lo, convicted of tax evasion in 1980 under the name of Esther Chu, who was another visitor at the coffee of the White House Clintons, has since been arrested again on 14 charges of falsifying mortgage applications, to which she had pleaded not guilty at the time.

In March 1997, Mr. Speaker, former White House Chief of Staff Leon Panetta acknowledged that the 1996 Clinton reelection committee played a role in the spending of some $35 million to $40 million in soft money contributions on campaign commercials. Mr. Panetta's comments marked the first time that a member of Mr. Clinton's inner circle publicly stated that the President's reelection campaign helped direct the spending of these funds.

[Page: H1538]

[TIME: 2315]

When asked if it was illegal for the Clinton campaign to use soft money, Mr. Panetta replied it was not because the money was spent as a part of overall Democratic strategy in confronting the Republican Congress.

The key witnesses in the Democratic fundraising probe, Webster Hubbell, John Huang, and former White House aide Mark Middleton have reportedly invoked their fifth amendment rights and refused to turn over subpoenaed papers to the White House Government Reform and Oversight Committee, although in recent developments in the news, Mr. Hubbell has been forthcoming.

The Democratic National Committee has said it will return $3 million in illegal, improper or suspicious donations including $1.6 million raised by Mr. Huang, $645,000 raised by Charlie Trie and $366,000 raised by Johnny Chung.

What I would say, Mr. Speaker, is we need to take a look. Is there a conflict of interest between payments to the DNC, to the White House, and to the takeover of a Communist-controlled COSCO in Long Beach Naval Shipyard, a company again that shipped in AK-47's, a company that is owned by Communist China. Another company that actually made the arms, owned by Communist China. Another company that directs the sales of those and delivery of those arms owned by Communist China. All three corporations, their CEO is Communist China. And what future developments could we have by Communist China completely controlling and having access to Long Beach Naval Shipyard?

Again if they want to have a right to port there like they have over the 15 years, we have no problem with that. Our problem is it gives them complete control of the 145 acres and access, and where things go.

Mr. Speaker, we are opposed to the takeover of Long Beach Shipyard by a Communist Chinese power. Recently Communist China has increased its military spending by over 30 percent in one year. They recently purchased 250 SU-27's which outclass, nonparity, our F-15 Strike Eagles and our F-14-D's. Their AA-10, AA-11 and 12 missiles that they bought from Russia outclass our AMRAAM to where we do not have parity, even with those fighters.

Russia has currently a follow-on to that, the SU-35. Communist China and COSCO have illegally shipped nuclear weapons to all of our former enemies, including Iraq, Iran, and Syria. They have been cited for shipping chemical and biological weapons to Iran, Iraq, and Syria. That, with the threat to the United States that if we got involved with one of their holdings, Taiwan, that they would threaten us with nuclear retaliation on the city of Los Angeles, is that a country that we want to have control and access to our port? I say no, Mr. Speaker.

I believe in China, and I believe in trade, that it is hard to change a 10,000-year-old dog, and I think we need to get involved in investment with China. But currently we have one of the largest deficits, trading deficits with any other Nation with China. When we talk about trade, we need to talk about fair trade. We do not want access of Chinese-controlled government, we do not want them to slap us in the face with the threat of Taiwan. I think under Republican and Democratic administrations, Mr. Speaker, that our weak link is our State Department. I think our new successor in that department is probably the absolute best person we could have. She is tough, she is tough on negotiations, and I think she will stand up for our workers' rights over trade with China. But it has not happened in the past. And Madeleine Albright, I think if anybody can do it in the administration, she can, and I support that, because she is tough and that is what we need for a change in our trade negotiations. I supported NAFTA and I supported GATT, but yet our administration now and under Republican administrations in many of my colleagues' opinion has not stood up for our workers. Yes, we do need to trade with China. We do need to trade with other countries. But not when they keep slapping us in the face, and currently and in the future pose a national security threat to this country.

Mr. Speaker, all these facts are documented in newspaper articles.

END

We are already loosing all our jobs to them!

She's just doing what she's been paid to do....

Hillary replaces Mao

The old Long Beach Naval port is back in the news again... with little rays of sanity....

http://www.gsnmagazine.com/cms/features/news-analysis/1471.html
Port of Los Angeles prepares to cancel its controversial Chinese X-ray contract
By Jacob Goodwin, Editor-in-Chief
Published February 3rd, 2009

Nearly seven months after taking delivery of a mobile X-ray system manufactured in the People's Republic of China, the Port of Los Angeles is on the verge of canceling the controversial contract.

The staff at the port has recommended that the Board of Harbor Commissioners find DULY Research, Inc., the California-based broker who represents the Chinese manufacturer, in default of the terms of the contract, when it next meets on Feb. 5.

"Cancellation of the purchase contract is recommended because after delivery of the mobile scanning unit to the Port of Los Angeles on July 8, 2008, field tests and other research revealed that the manufacturer and vendor failed to meet the requirements of the Purchase Contract," said a staff summary submitted to the board.

The contract created a stir in the media and on Capitol Hill because the manufacturer is Nuctech Company Limited, a Chinese company headquartered in Beijing, whose president happens to be the son of the President of the People's Republic of China.

Critics of the deal argued that procuring a Chinese-built X-ray scanning system could endanger U.S. national security, that it would outsource U.S. manufacturing jobs, and that it was possible that Nuctech had "reverse engineered" patented U.S. and European X-ray technologies. The fact that a large portion of the purchase price would be reimbursed with a port security grant from the U.S. Department of Homeland Security drew additional criticism.
The contract was originally signed between the Port of Los Angeles and DULY Research, of Rancho Palos Verdes, CA, on October 24, 2007, for a total price of $1,880,000, said the memo prepared by the port's homeland security division. Since that time, the Board agreed to certain "add-on" options – that were not described in the staff memo -- that raised the total cost of the deal to more than $2.4 million.

In recommending that the board declare DULY Research in default and cancel the entire contract, the homeland security division made no mention of any of the political controversy that swirled around the original contract.

The fact that the port had signed such a contract to purchase a Chinese-built X-ray system was first disclosed in a front-page article published in the October 2008 edition of GSN: Government Security News. Shortly thereafter, Lou Dobbs, a TV newsman on the CNN; Michael Savage, a conservative radio talk show host; and Rep. Dana Rohrabacher (R-CA), whose congressional district includes the Port of Los Angeles, all blasted the port's X-ray contract.
On Jan. 23, perhaps jumping the gun, Lou Dobbs reported that "the port of Los Angeles has apparently come to its senses on a very important issue."

The next day, in anticipation of the board's vote, Rep. Rohrabacher welcomed the Harbor Commissioners' upcoming move. "The decision to cancel this contract was the right decision and I would hope moving forward, the Ports are given direction by the federal government not to just accept the lowest bidder," said the congressman.

In fact, the board has not yet taken any official action to cancel the Chinese X-ray contract.

According to the staff memo, DULY Research and Nuctech have fallen short of the terms of their contract in several ways:

• The mobile scanning vehicle cannot be lawfully imported into the U.S. as a "conforming motor vehicle" and is not capable of being driven legally in California;
• The unit does not meet European Union standards regarding the control of fluorinated greenhouse gasses;
• DULY Research has not provided evidence of compliance with ISO 9001 quality standards;
• DULY Research has not provided system documentation or operational checklists in the English language;
• The generator for the X-ray unit failed during training due to a faulty solenoid;
• Two different perimeter monitoring radiation dosimeters failed;
• DULY Research has not provided documentation certifying the calibration of the radiation detectors, and;
• "During testing, the Mobile Scanning Unit consistently failed to operate as specified without the intervention and assistance of a DULY Research/Nuctech technician."

The staff memo says that, if the board cancels the Chinese contract, "The Port Police will evaluate current technologies to determine how best to reprogram these funds."

David Yu, the president of DULY Research told GSN that the board is "thinking of cancelling the contract," but no final decision has been made yet.

"The result of your publication has generated a lot of negative feelings," he said on Feb. 3.

Yu and other members of the public will be granted three minutes each to address the board at its upcoming meeting. The president of the board has the right to offer Yu additional time.

http://norfolk.fbi.gov/dojpressrel/pressrel08/bribery111708.htm

MONDAY, NOVEMBER 17, 2008
VIRGINIA PHYSICIST PLEADS GUILTY TO ILLEGALLY EXPORTING SPACE LAUNCH DATA TO CHINA AND OFFERING BRIBES TO CHINESE OFFICIALS

WASHINGTON – A physicist in Newport News, Va., has pleaded guilty today to charges that he illegally exported space launch technical data and defense services to the People’s Republic of China (PRC) and offered bribes to Chinese government officials.

The guilty plea was announced today by Dana Boente, Acting U.S. Attorney for the Eastern District of Virginia; Patrick Rowan, Assistant Attorney General for National Security; Matthew Friedrich, Acting Assistant Attorney General of the Criminal Division; Arthur M. Cummings, II, Executive Assistant Director, FBI National Security Branch; and Alex J. Turner, Special Agent-in-Charge, FBI Norfolk Division.

Shu Quan-Sheng (Shu), 68, a native of China, naturalized U.S. citizen and Ph.D. physicist, entered his plea before Judge Henry C. Morgan, Jr. in U.S. District Court for the Eastern District of Virginia, Norfolk Division. Shu is the President, Secretary and Treasurer of AMAC International Inc., (AMAC), a high-tech company based in Newport News and that has offices in Beijing.

Shu pleaded guilty to a three-count criminal information. Count one alleges that from January 2003 through October 2007, Shu violated the Arms Export Control Act by willfully exporting a defense service from the United States to the PRC without first obtaining the required export license or written approval from the State Department. Specifically, the information alleges that Shu provided the PRC with assistance in the design and development of a cryogenic fueling system for space launch vehicles to be used at the heavy payload launch facility located in the southern island province of Hainan, PRC.

The space launch facility at Hainan will house liquid-propelled heavy payload launch vehicles designed to send space stations and satellites into orbit, as well as provide support for manned space flight and future lunar missions, according to a criminal complaint filed in the case. Among those PRC government entities involved in the Hainan facility are the People's Liberation Army's General Armaments Department and the 101st Research Institute (101 Institute), which is one of many research institutes that make up the China Academy of Launch Vehicle Technology, as overseen by the Commission of Science Technology and Industry for the National Defense, according to the criminal complaint. 

Count two of the criminal information alleges that on Dec. 20, 2003, Shu violated the Arms Export Control Act by willfully exporting a defense article to the PRC without first obtaining the required export license or written approval from the State Department. Specifically, the information alleges that Shu illegally exported to the PRC controlled military technical data contained in a document entitled “Commercial Information, Technical Proposal and Budgetary Officer – Design, Supply, Engineering, Fabrication, Testing & Commissioning of 100m3 Liquid Hydrogen Tank and Various Special Cryogenic Pumps, Valves, Filters and Instruments.”

Count three of the criminal information alleges that Shu offered, paid, promised and authorized the payment of bribes to Chinese government officials to influence their decisions and secure an improper advantage, in violation of the Foreign Corrupt Practices Act. Specifically, Shu, acting on behalf of his company, AMAC, and a French company he represented, offered to pay money to foreign officials of the PRC’s 101 Institute to obtain a contract for the development of a 600 liter per hour liquid hydrogen tank system, according to the information.

The criminal information indicates that Shu offered money on three occasions to three PRC officials with the 101 Institute to secure the contract. In February 2006, he offered “percentage points” worth approximately $56,800. In April 2006, he offered “percentage points” worth some $56,800, and in May 2006, he offered “percentage points” worth approximately $75,700, for a total of $189,300, according to the criminal information. In January 2007, the $4 million hydrogen liquefier project was awarded to the French company that Shu represented.

Sentencing in this matter is scheduled for April 6, 2009, where Shu faces a possible maximum sentence of 10 years in prison and a fine of $1,000,000 for each violation of the Arms Export Control Act, and a possible maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain for violating the Foreign Corrupt Practices Act.

This investigation was conducted by the FBI, with assistance from U.S. Immigration and Customs Enforcement and the U.S. Department of Commerce, Office of Export Enforcement. 

http://www.outlookseries.com/news/Security/5456.htm

Virginia Physicist Shu Quan-Sheng Arrested for Illegally Exporting Space Launch Data to China and Offering Bribes to Chinese Officials
Sept. 24, 2008


Shu Quan-Sheng (“Shu”), 68, a native of China, naturalized U.S. citizen and PhD physicist, was arrested in Newport News by FBI agents. Shu is the President, Secretary and Treasurer of AMAC International (“AMAC”), a high-tech company located in Newport News. AMAC International also has an office in Beijing, China. Shu made his initial appearance earlier today in U.S. District Court for the Eastern District of Virginia, Norfolk Division.

Shu is charged in a criminal complaint with unlawfully exporting a defense service to foreign persons without prior approval, in violation of the Arms Export Control Act; unlawfully exporting a defense article in violation of the Arms Export Control Act; and bribing, offering a bribe, and attempting to bribe a foreign government official, in violation of the Foreign Corrupt Practices Act (FCPA). Shu faces a possible sentence of 10 years in prison for each violation of the Arms Export Control Act, and five years in prison for violating the FCPA.

According to the complaint, beginning in or around January 2003, Shu provided technical assistance and foreign technology acquisition expertise to several PRC government entities involved in the design, development, engineering and manufacture of a space launch facility in the southern island province of Hainan, PRC. This facility will house liquid-propelled heavy payload launch vehicles designed to send space stations and satellites into orbit, as well as provide support for manned space flight and future lunar missions.

Among those PRC government entities involved in the space launch facility in Hainan are the People's Liberation Army's General Armaments Department and the 101st Research Institute (101 Institute), which is one of many research institutes that make up the China Academy of Launch Vehicle Technology, as overseen by the Commission of Science Technology and Industry for the National Defense. The Beijing Special Engineering Design Research Institute (BSEDRI) is the governmental entity responsible for the procurement of cryogenic liquid storage tanks for the Hainan launch facility

According to the complaint, Shu has been involved in the PRC's systematic effort to upgrade their space exploration and satellite technology capabilities by providing technical expertise and foreign technology acquisition in the fields of cryogenic pumps, valves, transfer lines and refrigeration equipment, components critical for the use of liquefied hydrogen in a launch facility. Shu has also been instrumental in arranging for PRC officials to visit various European space launch facilities and hydrogen production/storage facilities.

Shu's efforts include the successful brokering of a January 2007 contract between the PRC’s 101 Institute and a French company for the production and supply of a 600 liter per hour hydrogen liquefier. This liquefier will be part of the 101 Institute's comprehensive research, development, and test base for liquid-propelled engines and space vehicle components, and at the time, the liquefier represented the first in as many as five additional projects to be undertaken by AMAC and the French company, all to be used as ground-based support for the launch vehicles at the Hainan launch facility.

Shu is accused of illegally exporting technical data related to the design and manufacture of a “Standard 100 M3 Liquid Hydrogen (LH) 2 Tank,” and illegally providing assistance to foreign persons in the design, development, assembly, testing or modification of the “Standard 100 M3 LH2 Tank” and related components of fueling systems for a foreign launch facility. At no time during this period did Shu have the required licenses or written approvals with respect to brokering, export of defense articles, or proposals to provide defense services to the PRC.

The complaint also alleges that Shu offered bribes to government officials with the PRC’s 101 Institute to induce the award of the hydrogen liquefier project to the French company Shu represented. According to the complaint, on Dec. 1, 2003, Shu and his company AMAC entered into an agreement with the French company establishing AMAC and Shu as the French company’s representative in China. The agreement provided that AMAC was entitled to a success fee of ten to fifteen percent.

"US-China Economic and Security Review Commission"  2008 report
http://www.uscc.gov/annual_report/2008/annual_report_full_08.pdf


DEAR SENATOR BYRD AND SPEAKER PELOSI:
On behalf of the U.S.-China Economic and Security Review Commission, we are pleased to transmit the Commission’s 2008 Annual
Report to the Congress—the sixth major Report presented to Congress by the Commission—pursuant to Public Law 106–398 (October
30, 2000), as amended by Public Law 109–108 (November 22, 2005). This report responds to the mandate for the Commission ‘‘to
monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship
between the United States and the People’s Republic of China.’’ In this Report, the Commission reached a broad and bipartisan consensus;
it approved the Report unanimously, with all 12 members voting to approve and submit it.

In accordance with our mandate, this Report includes detailed treatment of our investigations of the areas identified by Congress
for our examination and recommendation. 

These areas are:

• PROLIFERATION PRACTICES—The role of the People’s Republic of China in the proliferation of weapons of mass destruction
and other weapons (including dual-use technologies), including actions the United States might take to encourage the People’s
Republic of China to cease such practices;

• ECONOMIC TRANSFERS—The qualitative and quantitative nature of the transfer of United States production activities to
the People’s Republic of China, including the relocation of high technology, manufacturing, and research and development facilities,
the impact of such transfers on United States national security, the adequacy of United States export control laws, and the
effect of such transfers on United States economic security and employment;

• ENERGY—The effect of the large and growing economy of the People’s Republic of China on world energy supplies and the role
the United States can play (including joint research and development efforts and technological assistance) in influencing the energy
policy of the People’s Republic of China;

• UNITED STATES CAPITAL MARKETS—The extent of access to and use of United States capital markets by the People’s Republic
of China, including whether or not existing disclosure and transparency rules are adequate to identify People’s Republic of
China companies engaged in harmful activities;

• REGIONAL ECONOMIC AND SECURITY IMPACTS—The triangular economic and security relationship among the United
States, [Taiwan] and the People’s Republic of China (including the military modernization and force deployments of the People’s
Republic of China aimed at [Taiwan]), the national budget of the People’s Republic of China, and the fiscal strength of the People’s
Republic of China in relation to internal instability in the People’s Republic of China and the likelihood of the externalization
of problems arising from such internal instability;

• UNITED STATES–CHINA BILATERAL PROGRAMS—Science and technology programs, the degree of noncompliance by
the People’s Republic of China with agreements between the United States and the People’s Republic of China on prison labor
imports and intellectual property rights, and United States enforcement policies with respect to such agreements;

• WORLD TRADE ORGANIZATION COMPLIANCE—The compliance of the People’s Republic of China with its accession agreement
to the World Trade Organization; and

• FREEDOM OF EXPRESSION—The implications of restrictions on speech and access to information in the People’s Republic of
China for its relations with the United States in the areas of economic and security policy.

The Commission conducted its work through a comprehensive set of nine public hearings, taking testimony from over 92 witnesses
from the Congress, the executive branch, industry, academia, policy groups, and other experts. It conducted eight of these hearings in
Washington, DC, and conducted one field hearing in New Orleans, Louisiana, on seafood imported into the United States. For each of
its hearings, the Commission produced a transcript (posted on its Web site—www.uscc.gov). The Commission also received a number
of briefings by officials of executive branch agencies, intelligence community agencies, and the armed services, including two days of
classified briefings on China’s cyber operations and espionage. (The Commission is preparing a classified report to Congress on those
topics.)

Commissioners also conducted official visits to China, Hong
Kong, and Taiwan, and to South Korea and Japan to hear and discuss
the perspectives of those nations on China and its global and
regional activities. In these visits, the Commission delegations met
with U.S. diplomats, host government officials, representatives of
the U.S. and foreign business communities, and local experts.
The Commission also relied substantially on the work of its excellent
professional staff, and supported outside research in accordance
with our mandate.

The Report includes 45 recommendations for Congressional action.
Our 10 most important recommendations appear on page 17
at the conclusion of the Executive Summary.
We offer this Report to the Congress in the hope that it will be
useful as an updated baseline for assessing progress and challenges
in U.S.-China relations.

Thank you for the opportunity to serve. We look forward to continuing
to work with you in the next Congress to address issues of
concern in the U.S.-China relationship.

reference:

15 November 2007
http://news.bbc.co.uk/2/hi/americas/7097296.stm

China spying 'biggest US threat'
 
The US must boost its computer security, congressional advisers say
Chinese espionage poses "the single greatest risk" to the security of US technology, a panel has told Congress.
China is pursuing new technology "aggressively", it says, legitimately through research and business deals and illegally through industrial espionage.

China has also "embraced destructive warfare techniques", the report says, enabling it to carry out cyber attacks on other countries' infrastructure.

A foreign ministry spokesman in Beijing denied any spying activities by China.

"China and the US have a fundamental common interest in promoting sound and rapid development," said Liu Jianchao, quoted by the Associated Press news agency.


The allegations were made by the US-China Economic and Security Review Commission in its annual report.
 

Yes there is money in Perpetual War for Perpetual Peace...  will back-doored/defective bootleg military parts find there way into our armed forces?

http://www.intelligencesearch.com/ia055.html
Chinese Spy Exposes CCP Espionage Network in Europe
July 5, 2005

LONDON - In order to gain competitive advantage in global commerce, the Beijing authorities have laid a meticulous industrial espionage network throughout Europe, which penetrated all levels of the key industries in Europe including national defense, aerospace, chemistry, heavy industry and communication. This spying has taken place for at least 10 years and is causing serious concerns to the governments in Europe; countries including England have already started to fully investigate it.
On the other hand, a recent report by U.S. House of Representatives states that China’s breakthroughs in many scientific and technological fields were achieved by the information obtained through industrial espionage. Those include a supercomputer that runs at speeds previously achieved only by America and Japan, sophisticated communication system and satellite technology, etc.

Experts hold China’s recent advances in the sensitive Taiwan Strait military force is also the result of Chinese espionage against United States. It includes the new cruise missile system that mimics the American Tomahawk cruise missile and the coast defense system that was developed by stealing the blue print of the American Aegis weapons systems

A senior Chinese spy that has been dispatched to stay in Europe for long-term recently defected in Belgium and exposed the Beijing authorities’ plan of obtaining European advanced industrial information and dominating the global industry. The Belgium intelligence expert says the Chinese industrial espionage network in Europe is not only large-scale, but also very penetrating.

The British Daily Telegraph reported that this Chinese spy defector has already turned over the names of several hundred other spies in Europe and detailed their espionage activity to the Belgian government. Because many countries have been penetrated, governments including Germany, France, Holland, Belgium and England have all started full investigations.

As the defector has so far not been granted political asylum, he refuses to appear in public. According to intelligence officials, this defector is a full-time student, who holds a high-ranking position at the Chinese Students and Scholars Association of Leuven (CSSAL) in Belgium, and he is in charge of coordinating Chinese industrial espionage in Europe. (Note: the President of the Brussels-based European Center for Strategic and Security Studies (ESISC), Mr. Moniquet, said that this defected spy had been working at a European university and company for ten years. He is only an ordinary member of CSSAL and has not held any high-ranking positions.)

Intelligence officials say that CSSAL helps Beijing officials to stay in contact with Chinese people in different social classes. Whether they are secret agents at embassies, post-graduate students sent to study abroad in Europe or private individuals, they have all independently worked for five to ten years.

Belgian officials pointed out that the French-based communication company Alcatel is a target of infiltration by Chinese industrial spies in Europe. Alcatel obtained a one billion euros (1.2 billion $US) partnership agreement with its Galileo satellite navigation system, which is considered by European leaders to be competitive with the U.S. Global Positioning System (GPS.)

Intelligence officials say that thanks to the information collected by secret agents, China has been able to successfully become a partner in Galileo satellite navigation system.

Chinese spies have not only infiltrated Europe, they have also penetrated the United States. FBI officials in charge of counter-espionage said that China is rapidly weakening the United States’technological advantages. One official said this was evident when China could produce something that would normally take a decade of development in just two or three years.

This official went on to say that China’s intelligence work is used in every area, including personal business, industry, and institutional technological research; nothing is left out.

The "New" Tiger Song - Since we brought up Tiger Song let's see what that has to do with the Chinese trying to acquire 3COM. hmmm....

http://blog.barofintegrity.us/2008/01/01/mitt-romneys-new-tiger-song.aspx
Mitt Romney's New 'Tiger Song'

Background:

http://www.freerepublic.com/focus/f-news/1916444/posts
China Angles to Buy 3Com

Excerpt:

According to the CIA, Huawei was responsible for the installation of an advanced fiber-optic air defense network in Iraq during Saddam’s brutal rule. The Huawei network, NATO code-named “Tiger Song,” was used to shoot down allied aircraft flying patrol over the Iraqi skies.

The network was installed in violation of an U.N. embargo. Worse still, the air defense network was paid for by the corrupt oil-for-food program which send cash to Huawei that was intended to feed starving Iraqi children.

Despite its history of killing American soldiers — it is Huawei’s teaming with Bain and Goldman Sachs that has enabled the Chinese company to arrange the buyout of 3Com. The Bain/Goldman/Huawei team has influence inside the highest political circles.

For example, current Republican candidate Mitt Romney has links to Bain. Gov. Romney enjoyed a successful career at Bain, helping to amass over a quarter of a billion dollars in his own personal fortune. Romney may have left the company in 2001, but he and his family still own a significant stake in the firm through his blind trust, which according to the Washington Post earned him $7 million to $15 million during the last year.

Bain associates, employees and friends have also been very generous to Gov. Romney’s campaign for the White House. Bain employees have donated over $190,000 to Romney, making the firm one of his largest sources of political cash. This amount does not include the efforts of former and current Bain partners and executives of companies Romney bought who are also raising hundreds of thousands of dollars.

All these financial ties to Bain bring into question the possible conflict of interest that Romney faces. So far, Gov. Romney has refused to comment on the Bain deal. Repeated calls to the Romney campaign were not returned.

------------------------------------------------------------------
Most are not familiar with Huawei. The company’s founder, Ren Zhengfei is a former officer of the People’s Liberation Army.

Excerpt:

http://www.rand.org/pubs/monographs/2005/RAND_MG334.pdf
A New Direction for China’s Defense Industry

Huawei Shenzhen Technology Company. Huawei was founded in 1988 by Ren Zhengfei, a former director of the PLA General Staff Department’s Information Engineering Academy, which is responsible for telecom research for the Chinese military. Huawei maintains deep ties with the Chinese military, which serves a multi-faceted role as an important customer, as well as Huawei’s political patron and research and development partner. Both the government and the military tout Huawei as a national champion, and the company is currently China’s largest, fastest-growing, and most impressive telecommunications-equipment manufacturer...

In analyzing the dynamics of the IT sector, it is first necessary to divide the defense portion of the IT sector into two related but distinct categories. The first includes those subsectors providing the PLA with commercial-off-the-shelf IT systems, such as routers, switches, and computers, which have become increasingly central to the digitization of the U.S. military. Key companies in this category include such “red chips” (the Chinese equivalent of U.S. blue-chip companies) as Huawei, Zhongxing, Datang, Julong, and the Wuhan Research Institute, all of which are private companies spun off from state research institutes that enjoy national-champion preferences within the system. They are marked by new facilities in dynamic locales, such as southern and eastern China, a high-tech workforce, and infusions of foreign technology. These firms are not obligated to provide a social safety net for thousands of unemployable workers and their families in rural areas. Instead, they hire and fire staff using market-based incentives and stock options...

The two most important categories of Chinese IT firms, particularly in dealings with foreign multinationals, are telecommunications equipment and electronics. Publicly, the major players in telecommunications—Huawei, Datang, Zhongxing, and Great Dragon (Julong)—appear to be independent, private-sector actors. By contrast, many of the electronics firms are grouped under ostensibly commercially oriented conglomerates, such as China Electronics Corporation. However, one does not need to dig too deeply to discover that many of these electronics companies are the public face for, sprang from, or are significantly engaged in joint research with state research institutes under the Ministry of Information Industry, defense-industrial corporations, or the military. Indeed, each of the “four tigers” of the Chinese telecommunications equipment market (Huawei, Zhongxing, Datang, and Julong) originated from a different part of the existing state telecommunications research and development infrastructure, often from the internal telecommunications apparatus of different ministries or the military. These connections provide channels for personnel transfers, commercialization of state-sponsored R&D (”spin-off”), and militarization of commercial R&D (”spin-on”)...

Huawei has also become the most successful Chinese exporter of equipment, entering international markets in 1996. According to one source, “For the future, Huawei wants to be the Cisco of the PRC, but also is ambitious to become a global player.” The company is rapidly penetrating Africa, Russia, India, and many other areas ignored by Western telcos...

-----------------------------------------------------------------------

As part of its backbone infrastructure work, Huawei supplied secure fiber optic communications networks widely within the PLA, its missile networks and fire control/command and control systems, and would supply a variant, Tiger Song, to Iraq prior to Operation Iraqi Freedom (during the 1990s) which greatly complicated US interdiction as previous Iraqi anti-air comm had been interceptable, targetable transmissions. The PRC was one of many UN embargo violators (which included our allies France and Germany as well as Russia)

http://www.afpc.org/crm/crm368.shtml

The Chinese-built “Tiger Song” fiber-optic air defense system used by Iraq is comprised of American-made technology obtained with a waiver from the Clinton Administration… The advanced fiber-optic system was a result of the friendship between General Ding Henggao, Commander of the Chinese Army military research bureau COSTIND [Commission on Science and Industry for National Defense] and then-US Defense Secretary William Perry...

In 1994, Professor John Lewis of Stanford University… teamed with General Ding to buy an advanced AT&T fiber-optic communication system for “civilian use” inside China. According to the Far Eastern Economic Review, [Perry] wrote a letter to US Government export control officials, favoring the fiber-optic export to China. The venture was called “Hua Mei.” The Chinese part of the venture was run by the newly formed firm, “Galaxy New Technology,” with General Ding’s wife, Madame Nie Li, as the head of the project.

With the support of Perry and the advice of Prof. Lewis, AT&T shipped the secure communications system directly to a Chinese Army unit, using Galaxy technology as a front. The so-called “civilian” Galaxy firm was packed with senior Chinese military officers… Madame Nie was not only the wife of General Ding, but actually Lt. General Nie Lie of the Chinese Army. Galaxy Director and president was Mr. Deng Changgru, also known as Lt. Colonel Deng Changru, head of the Chinese Army communcations corps. Co-General manager of Galaxy, “Mr.” Xie Zhichao, also known as Lt. Colonel Xie Zhichao, director of the Chinese Army’s Electronics Design Bureau…

“The Chinese army’s Electronics Bureau… modified the American fiber-optics communication system, changing it into a secure air-defense system. The Chinese military then exported the newly modified system to Iraq. The Iraqi air defense network, NATO code-named “Tiger Song,” is made of US and French fiber-optic parts modified by the Chinese military.”

In 2001, Iraqi anti-aircraft missiles, guided by Tiger Song, regularly target US fighter planes. And following the recent US-British attack on the system, Chinese military engineers are reportedly repairing damages to the system.

-------------------------------------------------------------------


HUNTER CALLS ON ROMNEY TO OPPOSE BAIN PARTNERSHIP WITH CHINESE COMPANY

FOR IMMEDIATE RELEASE: November 2, 2007

CONTACT: Gary Becks (619) 334-1655, dlhunter08@yahoo.com

San Diego, CA - - - Presidential candidate and current Ranking Member of the House Armed Services Committee, Congressman Duncan Hunter, today called on former Governor Mitt Romney to send a "clear statement" to the leadership of the company he founded, Bain Capital, to terminate a proposed business deal with a controversial Chinese corporation seeking to acquire U.S. defense contractor 3COM. Bain Capital is attempting to form a business arrangement with Huawei Corporation, a Chinese corporation founded by an officer of the Peoples Liberation Army of Communist China, which faces allegations of assisting Saddam Hussein in the targeting of U.S. aircraft and in helping the Taliban develop surveillance equipment.

"I am extremely concerned that Governor Romney's company would tout a highly suspect Chinese corporation as a strategic partner," stated Hunter. "Forming a business partnership with a corporation known to have direct ties with terrorists and dictators while, at the same time, openly seeking to acquire a major U.S. corporation that performs vital cyber security work for the Department of Defense, can only be characterized as irresponsible."

A resolution has been introduced in Congress, H.Res. 730, which states; "The preponderance of publicly available evidence clearly suggests that as currently structured, the proposed transaction involving Huawei threatens the national security of the United States and should not be approved by the Committee on Foreign Investment in the United States ." A copy of this resolution is provided.

Hunter stated in his letter to Governor Romney, "…while it is true that you no longer control Bain Capital, the contributions you have received from its principals as its founding member indicate that your influence within the company remains strong.

"Further, while the Committee on Foreign Investment has yet to rule on the Huawei transaction, this corporation's connection to Saddam Hussein, the Taliban and the Army of Communist China should clearly disqualify them from becoming, in the words of your former company, "a strategic partner" in acquiring a U.S. firm such as 3COM, which performs vital cyber-security work for the U.S. Department of Defense.

"This letter is a request that you immediately issue a statement of policy that this transaction should be terminated on the grounds of national security. Please let me know what you intend to do."

A copy of Congressman Hunter's letter, as well as two articles regarding Huawei acquisition efforts are provided. Media are encouraged to contact Gary Becks at (619) 334-1655 for additional information or to arrange an interview with Hunter.

# # #

Hunter for President, Inc. 9340 Fuerte Drive La Mesa, California 91941 United States

"Peace Through Strength" The need for military, economic and diplomatic strength.

Thank You

http://www.newsmax.com/smith/china_3com/2008/02/26/75627.html

Chinese Takeover Bid of 3Com Fails
Tuesday, February 26, 2008 10:05 AM
By: Charles R. Smith  

Score one for the good guys. The takeover bid of U.S. computer communications maker 3Com by a Chinese military related company has failed.

3Com announced that the bid was being withdrawn after it failed to answer national security questions issued by a government review committee.

The takeover raised serious questions about allowing a Chinese army related firm to do business in the U.S. and even buy out a Pentagon contractor. The Chinese company, Huawei, was directly linked by several intelligence reports to supplying air defense and communications networks to Saddam Hussein and the Taliban.

What is more troublesome is the bid nearly succeeded. At first the deal was not going to be reviewed for national security concerns and it was simply rubber-stamped by the Bush administration. However, news of the takeover prompted action, forcing a review but this was after the deal had already been OKed by the highest levels.

The Bush administration had trouble dealing with the takeover bid. Secretary of Defense Robert Gates revealed that he was completely in the dark about the deal. The admission by Gates echoed similar confessions by the Pentagon top brass that they also were unaware of the buyout.

The Defense Department and the U.S. intelligence agencies were surprised by the proposed deal and had to scramble in order to get it reviewed for national security reasons.

The failure at the Defense Department is attributed to the Defense Technology Security Agency or DTSA. During the Clinton years, DTSA was a strong advocate of checking all export deals with China. In fact, aggressive DTSA efforts were documented by the Loral Corporation for holding up the sale of advanced radars to the Chinese military. Today, DTSA is a headless giant unable to do its job.

The Pentagon has not appointed an active director to run DTSA and the length of time the position has been vacant suggests little sense of urgency to do so. Leaderless, DTSA was caught unaware of the deal and was unable to provide warning to senior Defense Department officials.


The current "acting" head of DTSA, Mrs. Beth M. McCormick, actually served during the Clinton administration under Defense Secretary William Perry. This fact alone should raise alarm bells.

Perry is directly linked to the export of the advanced communications systems that ended up in the Iraqi desert.

In 1994, Chinese Gen. Ding Henggao met with Perry to arrange a deal for advanced — secure — fiber-optic communications electronics. Ding was able to set his wife, Madam General Nie, up as head of a false corporation that obtained advanced U.S. fiber-optic systems. Madam Nie's company was allegedly staffed entirely by Chinese army officers who specialized in exploiting communications and electronics.

In fact, documents obtained from the Department of Defense using the Freedom of Information Act (FOIA) show that Perry's personal (paid) adviser was also paid by the Chinese army while serving on the U.S. Defense Policy Board and working for Perry as a contractor.

The Chinese agent assigned to Perry, Hua Di, called himself the "match-maker" in the fiber-optic deal. Hua Di was a former Chinese missile scientist who defected to the U.S. after the Tianamen Square massacre. Di worked closely with Perry and his associates in the Chinese army, including a PLA general assigned to Ding Henggao.

Immediately after the exports took place, Hua Di defected back to China and has not been heard from since. A cover story has been issued, claiming that Di was arrested by the Chinese government and may have died from cancer but no one can tell because he has not been seen since for nearly a decade.

The fiber-optic export was so controversial that the General Accounting Office wrote an entire report on how it would be exploited by the Chinese military. The 1994 export deal led to a flood of systems sold to Chinese army front companies. The Clinton administration was responsible for exporting the U.S. made communications and computer equipment to Huawei that ended up in Saddam's air defense network and in the hands of the Taliban.

Huawei, according to a report from the Rand Corporation, is run by a former Chinese air force general. Huawei obtained advanced fiber-optic electronics from the U.S. during the Clinton administration and then resold the equipment to Saddam Hussein for use as an air defense network. Huawei was caught in the act by the CIA, which documented its find in the Iraq Survey Group Final Report.

The Huawei network installed for Saddam allowed the Iraqi air defense network to shoot down U.S. and allied aircraft. Despite repeated bombings by the allies, the network continued to function literally until Saddam was overthrown.

Even after Saddam was overthrown, Defense Department officials knew full well of Huawei's involvement with the Iraqi dictator. A May 2004 report issued by the Department of Defense noted that Huawei was "a Chinese company that operated in Iraq under Saddam Hussein."


The Clinton administration unleashed the computer and communications exports to China in 1994 despite repeated protests from Defense officials and even a report by the General Accounting Office warning that such exports could be used for military purposes.


An ex-Clinton official, now running the agency charged to oversee these exports, messed up and the whole affair ended up dying after a real national security review took place. Expect the Chinese to try again. Huawei is not banned from the U.S. and an-ex Clinton official is the watchdog in charge of prevented any similar occurrences.


It is unlikely you will hear Hillary Clinton making any effort to comment on the Huawei deal. You will not hear about William Perry, his paid consultant or the Chinese double agent Hua Di in the mass media. Much too intellectual for the average Joe to understand that U.S. soldiers died because someone wanted to make a profit.

Back to the original post:

Today's indictment charged Jian Wei Ding, Kok Tong Lim and Ping Cheng with seeking to send carbon-fiber to the China Academy of Space Technology. Besides spacecraft and rockets, carbon fiber is also used to enrich uranium.

http://www.taipeitimes.com/News/world/archives/2009/03/25/2003439305
Singaporean man pleads guilty in US illegal exports case


AP , MINNEAPOLIS, MINNESOTA
Wednesday, Mar 25, 2009, Page 7
A third man has pleaded guilty to his role in a plot to illegally export materials used in space and weapons technology to China, Hong Kong and Singapore, the US attorney’s office announced on Monday.

Jian Wei Ding, 50, of Singapore, pleaded guilty on Friday in the US District Court in Minneapolis to one count of conspiracy to violate export regulations. His co-defendants — Ping Cheng, 46, of Manhasset, New York, and Kok Tong Lim, 36, of Singapore — also pleaded guilty in recent weeks to one count of conspiracy.

In their plea agreements, the three men admitted that from March 23, 2007, through April 6 last year they conspired to violate export regulations by exporting and attempting to export high-modulus carbon-fiber material without a license.

The material is used in rockets, satellites, spacecraft and uranium enrichment. For national security reasons, a license from the US Department of Commerce is required to export it.

The plea agreements said Ding controlled several import and export firms, including one that acquired high-technology items for its customers. One of those customers is the China Academy of Space Technology, which builds satellites for the Chinese government.

Ding’s role was to manage the companies, maintain a relationship with the Chinese users of the material and provide money to buy the material. Cheng acted as the US agent for Ding’s companies and Lim’s role was to reach out to US suppliers.

The defendants dealt with an undercover Minnesota company that purported to be a supplier of aerospace commodities.

The men each face a maximum penalty of 20 years in prison and a maximum US$1 million fine. A sentencing date has not been set.

Some updates:

http://www.thenewamerican.com/index.php/usnews/crime/3404-chinese-spying-in-the-unitedstates
Chinese Spying in the United States

Written by Alex Newman     
Tuesday, 27 April 2010 00:00 

A secret FBI videotape showing the transfer of classified military documents to a communist Chinese agent was released in February to the world, providing a brief peek at the shadowy world of espionage against America. Pentagon analyst Gregg Bergersen with the Defense Security Cooperation Agency is shown receiving a wad of bills and telling People’s Republic of China spy Tai Shen Kuo that he’s “very reticent” to let him have the information “because it’s all classified.”
...
In February, another Chinese spy was sentenced to 15 years in jail for stealing sensitive secrets from his former employers — Boeing and Rockwell International — and passing them to the communist regime. Engineer Dongfan “Greg” Chung reportedly gave up trade secrets about American space shuttles, military aircraft, and even the Delta IV rocket. Though Chung was 73 years old, the judge said he handed out the possible life sentence as a message to the Chinese government: “Stop sending your spies here.”
...
Chung was reportedly aided in his crimes by Chi Mak, a former defense-contractor engineer. Mak was convicted of conspiring to pass sensitive military technology to the PRC, including information on Navy ships, nuclear submarines, and more.“We will never know the full extent of the damage that Mr. Mak has done to our national security,” wrote the judge, who sentenced Mak to 24 years. His family later pled guilty to related criminal charges.

These are just a few of the more recently convicted PRC spies operating in the United States. The FBI has arrested dozens of Chinese on American soil in recent years for involvement in espionage operations on behalf of the communist regime. And according to various reports, there are close to 500 similar investigations ongoing. The problem is indeed enormous.
...
In its 2007 annual report to Congress on the military power of the PRC, the Department of Defense explained that Chinese espionage is a critical threat. “Several high profile legal cases highlight China’s efforts to obtain sensitive U.S. technologies (e.g., missile, imaging, semiconductor, and submarine) illegally by targeting well-placed scientists and businessmen,” explained the report. “U.S. Immigration and Customs Enforcement (ICE) officials have rated China’s aggressive and wide-ranging espionage as the leading threat to U.S. technology.

Since 2000, ICE has initiated more than 400 investigations involving the illicit export of U.S. arms and technologies to China.”

http://www.cbsnews.com/stories/2010/01/24/eveningnews/main6137395.shtml

MOUNTAIN VIEW, Calif., Jan. 24, 2010
Google Not Only Target of China Hackers
Chinese Cyber-Spies Target Dozens of U.S. Companies, Experts Say, Stealing Valuable Trade Secrets
...
Google discovered this was much more than an attack on the e-mail of one Chinese human rights activist. Not only was Google itself a target of the cyber-spies, but so were at least 20 other major corporations.

"This is not a Google story," said Peter Navarro, author of "The Coming China Wars." "It is a story about industrial espionage, coming from China, attacking American business and our economy."
...
One of the huge drivers of Chinese economic growth over the last several decades has been the forced technology transfer from America to China," Navarro said.

While there is no proof the Chinese government itself was involved in the attacks, Tenzin Seldon says American companies hoping to profit in China should beware.

"It is not them that has owned China; it is China that has owned them," Seldon said.

Bump for Romney running for President - also notice that Hunter was running for prez in 2008 and he seems to have replaced Cunningham on the Armed Services Commitee....

see: http://forum.prisonplanet.com/index.php?topic=78572.msg441109#msg441109

 April 17, 2006, 1:06 PM Over the weekend, a new profile by Copley News Service added to our understanding of former GOP Rep. Randy "Duke" Cunningham's "Co-conspirator #3," the mysterious Thomas Kontogiannis. Today, we can add a bit more. Recall that Kontogiannis bribed Cunningham through purchasing a yacht from the congressman -- and paying several hundred thousand dollars more than it was worth. His finance company also handled some of Cunningham's questionable mortgages. But reporters and investigators have struggled to understand what Kontogiannis was getting from Duke for all the money he spent on the lawmaker. The latest theory seems to be that Duke was introducing him to world leaders
...

Bottom-line: MZM-Cunningham appears to be part of the American side to the monster scandal involving multi-billion dollar kickbacks from defense contractors to the Saudi Royal family, which has been in turn buying western politicians and intelligence officials for decades.

Over the years, the Yamamah slush fund has bankrolled a series of Saudi black operations from Pakistan's nuclear program, to the BCCI rip-off, to the Iran-Contra operation, to the creation of al-Qaeda and political influence buying in the US and UK by various factions of the Royal family.

http://forum.prisonplanet.com/index.php?topic=89643.msg517745#msg517745
Case in point, Randall ‘Duke’ Cunningham -- he pleaded guilty to using his congressional office to accept bribes, kickbacks, money from the contractors he was voting to give government business. Cunningham right now is sitting in this federal prison in North Carolina, and getting his government pension, an estimated $64,000 a year, sent to a congressional felon sitting in the can."

HUNTER CALLS ON ROMNEY TO OPPOSE BAIN PARTNERSHIP WITH CHINESE COMPANY

FOR IMMEDIATE RELEASE: November 2, 2007
CONTACT: Gary Becks (619) 334-1655, dlhunter08@yahoo.com

San Diego, CA - - - Presidential candidate and current Ranking Member of the House Armed Services Committee, Congressman Duncan Hunter, today called on former Governor Mitt Romney to send a "clear statement" to the leadership of the company he founded, Bain Capital, to terminate a proposed business deal with a controversial Chinese corporation seeking to acquire U.S. defense contractor 3COM. Bain Capital is attempting to form a business arrangement with Huawei Corporation, a Chinese corporation founded by an officer of the Peoples Liberation Army of Communist China, which faces allegations of assisting Saddam Hussein in the targeting of U.S. aircraft and in helping the Taliban develop surveillance equipment.

"I am extremely concerned that Governor Romney's company would tout a highly suspect Chinese corporation as a strategic partner," stated Hunter. "Forming a business partnership with a corporation known to have direct ties with terrorists and dictators while, at the same time, openly seeking to acquire a major U.S. corporation that performs vital cyber security work for the Department of Defense, can only be characterized as irresponsible."
 

Oh how am I surprised again? oh they say "cyber" hacking , but are we sure they don't have someone on the INSIDE?

http://www.spacedaily.com/reports/Chinese_hackers_spying_on_US_weapons_programs_999.html
Chinese hackers spying on US weapons programs
 by Staff Writers
 Washington (AFP) May 28, 2013

Chinese hackers have gained access to secret designs for a slew of sophisticated US weapons programs, officials said Tuesday, possibly jeopardizing the American military's technological edge.

The breaches were part of a broad Chinese campaign of espionage against top US defense contractors and government agencies, officials said, confirming a Washington Post account of a Pentagon report.

The Defense Science Board, a senior advisory group with government and civilian experts, concluded that digital hackers had gained access to designs for two dozen major weapons systems critical to missile defenses, combat aircraft and naval ships, according to a Pentagon document cited by the Post.

The cyber spying gave China access to advanced technology and could weaken the US military's advantage in the event of a conflict, the board said.

The Pentagon advisory report stopped short of accusing Beijing of stealing the designs, but the conclusions help explain recent American warnings to the Chinese government.

"It's not clear how much of our stuff they got," a defense official told AFP on condition of anonymity.

The revelations of cyber espionage coincided with a report that Chinese hackers had stolen top-secret blueprints of Australia's new intelligence agency headquarters, including the layout for communications systems and server locations.
...

http://blog.heritage.org/2013/05/09/dod-china-report-reveals-comprehensive-military-buildup-espionage/
Pentagon Report on China Reveals Comprehensive Military Buildup, Extensive Espionage
Dean Cheng
May 9, 2013 at 10:51 am

The Department of Defense (DOD), per the requirements of the fiscal year 2000 National Defense Authorization Act (NDAA), this week issued the 2013 annual report to Congress on the Chinese military. This year’s report is a substantial expansion upon the 2012 report, nearly double in length, and with an extensive discussion of a number of areas. In addition to reading the valuable information in its pages, Washington should be reminded just how absolutely necessary this report is.

http://www.defense.gov/pubs/2013_China_Report_FINAL.pdf

http://intelreport.mandiant.com/Mandiant_APT1_Report.pdf


The most obvious takeaway is that the People’s Liberation Army (PLA) is engaged in a massive, extensive modernization program, drawing upon the resources of a constantly expanding economy (now the world’s second largest) to support improvements in not only the ground forces, but the PLA Navy (PLAN), the PLA Air Force (PLAAF), the Second Artillery (China’s rocket forces), as well as space and cyber capabilities.

The report provides details of various new ship classes, new fighters, new missiles, and improvements in Chinese space assets. Far from having to choose between guns or butter, the PLA is, in the words of my economics counterpart Derek Scissors, “buying guns soaked in butter.”

Even more important, this year’s report specifically charges the People’s Republic of China (PRC) and the PLA with engaging in cyber actions directed against the United States. “China is using its computer network exploitation (CNE) capability to support intelligence collection against the US diplomatic, economic, and defense industrial base sectors,” the report says.
...

Finally, there is an odd juxtaposition in this year’s report. On the one hand, there is extensive discussion of Chinese military diplomacy, including the range of Chinese bilateral and multilateral military exercises, as well as military-to-military exchanges, visits, etc. This is alongside a remarkably detailed review of Chinese espionage, both human and cyber. A number of Chinese spies are identified, as well as their targets.

What is left unstated is why the U.S. intends, in light of the concerns about espionage, to facilitate Chinese military diplomacy, such as the invitation to the PLA to attend the 2014 Rim of the Pacific (RIMPAC) exercises. These large, multilateral exercises, involving many of America’s closest allies in the Pacific engaging in real-world combat training (e.g., torpedo attacks, air defense operations) would seem to be a cornucopia of information for Chinese intelligence.

What are they aiming at?

http://www.washingtontimes.com/news/2013/oct/31/inside-china-nuclear-submarines-capable-of-widespr/

Inside China: Nuclear submarines capable of widespread attack on U.S.

Chinese state-run media revealed for the first time this week that Beijing’s nuclear submarines can attack American cities as a means to counterbalance U.S. nuclear deterrence in the Pacific.

On Monday, leading media outlets including China Central TV, the People’s Daily, the Global Times, the PLA Daily, the China Youth Daily and the Guangmin Daily ran identical, top-headlined reports about the “awesomeness” of the People's Liberation Army navy’s strategic submarine force.

“This is the first time in 42 years since the establishment of our navy’s strategic submarine force that we reveal on such a large scale the secrets of our first-generation underwater nuclear force,” the Global Times said in a lengthy article titled “China for the First Time Possesses Effective Underwater Nuclear Deterrence against the United States.”

The article features 30 photos and graphics detailing, among other things, damage projections for Seattle and Los Angeles after being hit by Chinese nuclear warheads and the deadly radiation that would spread all the way to Chicago.

China’s sub fleet is reportedly the world’s second-largest, with about 70 vessels. About 10 are nuclear-powered, and four or more of those are nuclear ballistic submarines capable of launching missiles.




...
China also has developed land-based intercontinental ballistic missiles — notably the DF-31A, which has a range of 7,000 to 7,500 miles.

“If we launch our DF 31A ICBMs over the North Pole, we can easily destroy a whole list of metropolises on the East Coast and the New England region of the U.S., including Annapolis, Philadelphia, New York, Boston, Portland, Baltimore and Norfolk, whose population accounts for about one-eighth of America’s total residents,” the Global Times said.

All the state-run press reports stressed the point that the PLA’s missile submarines are now on routine strategic patrol, “which means that China for the first time has acquired the strategic deterrence and second strike capability against the United States.”

“Our JL-2 SLBMs have become the fourth type of Chinese nuclear missiles that threaten the continental United States, after our DF-31A, DF-5A and DF-5B ICBMs,” said the Global Times.

Hilldog...
Elites' writing about elites' - Dan Blumenthal is on the China Technology Board!

http://shadow.foreignpolicy.com/posts/2010/07/23/what_clinton_left_unfinished_in_asia
Clinton's unfinished business

 Posted By Daniel Blumenthal    Friday, July 23, 2010 - 4:16 PM

...

China Spying


http://www.aei.org/scholar/dan-blumenthal/



Dan Blumenthal is the director of Asian Studies at the American Enterprise Institute, where he focuses on East Asian security issues and Sino-American relations.  Mr. Blumenthal has both served in and advised the U.S. government on China issues for over a decade.  From 2001 to 2004, he served as senior director for China, Taiwan, and Mongolia at the Department of Defense.  Additionally, he served as a commissioner on the congressionally-mandated U.S.-China Economic and Security Review Commission since 2006-2012, and held the position of vice chairman in 2007.  He has also served on the Academic Advisory Board of the congressional U.S.-China Working Group. Mr. Blumenthal is the co-author of "An Awkward Embrace: The United States and China in the 21st Century" (AEI Press, November 2012).


http://shadow.foreignpolicy.com/blog/12340
A Sino-American Proxy War?
 Posted By Daniel Blumenthal   Wednesday, September 18, 2013
...
A public debate about a U.S. military strategy for China is most welcome. While the debate's particulars are important, it is equally significant that the U.S. national security community is now openly discussing ways to deter Chinese aggression and defeat it should deterrence fail.

This was hardly the case just a decade ago. Most in the U.S. national security elite were dismissive of China's military capabilities and believed that even talking about possibilities of conflict with China was provocative. Not only was this line of argument misguided -- taking seriously the possibility of conflict with China should lead to more robust deterrence and reassurance -- but it also wished away the fact that the Chinese security elite had been thinking about war with the United States for a long time.

If Washington is now more or less settled on a policy of engaging China while balancing its power and hedging against greater aggression, it is incumbent upon national security leaders to think as much about the balance and hedge part of the equation as they do the engage side. In an attempt to fill this gap, the Defense Department has developed a new concept, Air-Sea Battle (ASB). While much of ASB is classified, enough has been said to piece together its various moving parts. The operational concept requires that the U.S. military position itself to: 1) operate in an environment in which Chinese cyber-, anti-satellite, and electronic forces are seeking to degrade the C4ISR network upon which U.S. military effectiveness has become so reliant; 2) create better synergies between naval and air forces so they can effectively combat "anti-access" forces; and 3) hit targets on China's mainland to end Chinese salvos against U.S. allies and interests.

ASB is a direct descendent of the Cold War's AirLand Battle concept. Then, defense planners were worried that Soviet forces could quickly overrun allied forces at the central front of the Cold War -- Western Europe. AirLand Battle took a more offensive approach against the Soviet Union, using joint air and army forces to attack the Warsaw Pact states and targeting forces deep in Soviet- held territories before they had a chance to stage mass sweeps into Europe.
...

A public debate about a U.S. military strategy for China is most welcome. While the debate's particulars are important, it is equally significant that the U.S. national security community is now openly discussing ways to deter Chinese aggression and defeat it should deterrence fail.

This was hardly the case just a decade ago. Most in the U.S. national security elite were dismissive of China's military capabilities and believed that even talking about possibilities of conflict with China was provocative. Not only was this line of argument misguided -- taking seriously the possibility of conflict with China should lead to more robust deterrence and reassurance -- but it also wished away the fact that the Chinese security elite had been thinking about war with the United States for a long time.

If Washington is now more or less settled on a policy of engaging China while balancing its power and hedging against greater aggression, it is incumbent upon national security leaders to think as much about the balance and hedge part of the equation as they do the engage side. In an attempt to fill this gap, the Defense Department has developed a new concept, Air-Sea Battle (ASB). While much of ASB is classified, enough has been said to piece together its various moving parts. The operational concept requires that the U.S. military position itself to: 1) operate in an environment in which Chinese cyber-, anti-satellite, and electronic forces are seeking to degrade the C4ISR network upon which U.S. military effectiveness has become so reliant; 2) create better synergies between naval and air forces so they can effectively combat "anti-access" forces; and 3) hit targets on China's mainland to end Chinese salvos against U.S. allies and interests.

ASB is a direct descendent of the Cold War's AirLand Battle concept. Then, defense planners were worried that Soviet forces could quickly overrun allied forces at the central front of the Cold War -- Western Europe. AirLand Battle took a more offensive approach against the Soviet Union, using joint air and army forces to attack the Warsaw Pact states and targeting forces deep in Soviet- held territories before they had a chance to stage mass sweeps into Europe.
...

http://www.defense.gov/pubs/ASB-ConceptImplementation-Summary-May-2013.pdf
FOREWORD: The Air-Sea Battle Concept

http://www.cipe.org/content/william-reinsch
William A. Reinsch

Bill Reinsch currently serves as President of the National Foreign Trade Council. The NFTC, founded in 1914, is the oldest and largest business association dedicated solely to trade policy, export finance, international tax, and human resource issues. The organization represents 300 companies through its offices in New York and Washington, D.C. As president, Reinsch oversees NFTC’s efforts in favor of open markets, in support of Eximbank and OPIC, against unilateral sanctions and in support of sound international tax policy, among many other international trade and tax issues of concern to U.S. business. Concurrently, Mr. Reinsch also serves as a member of the U.S.-China Security Review Commission.

Prior to joining the NFTC, Reinsch served as the Under Secretary for Export Administration in the U.S. Department of Commerce. In that position he administered and enforced the export control policies and anti-boycott laws of the U.S. government and monitored the condition of the nation’s defense industrial base. Prior to taking this position, Mr. Reinsch spent twenty years on Capitol Hill from 1973 to 1993, most of them as senior Legislative Assistant to the late Senator John Heinz and subsequently to Senator John D. Rockefeller IV. He received a B.A. in International Relations from The Johns Hopkins University and an M.A. degree from The Johns Hopkins School of Advanced International Studies. He lives in Bethesda, Maryland, with his wife and two sons.


http://www.c-spanvideo.org/williamareinsch


2009 Report to Congress of the U. S. -China Economic and Security Review Commission
 edited by Carolyn Bartholomew 

http://www.uscc.gov/content/carolyn-bartholomew



Carolyn Bartholomew was reappointed to the Commission by House Democratic Leader Nancy Pelosi for a sixth two-year term expiring on December 31, 2013. She previously served as the Commission’s chairman for the 2007 and 2009 Report cycles and served as vice chairman for the 2010, 2008, and 2006 Report cycles.

Commissioner Bartholomew has worked at senior levels in the U.S. Congress, serving as counsel, legislative director, and chief of staff to now House Democratic Leader Nancy Pelosi. She was a professional staff member on the House Permanent Select Committee on Intelligence and also served as a legislative assistant to then U.S. Representative Bill Richardson.

In these positions, Commissioner Bartholomew was integrally involved in developing U.S. policies on international affairs and security matters. She has particular expertise in U.S.-China relations, including issues related to trade, human rights, and the proliferation of weapons of mass destruction. Ms. Bartholomew led efforts in the establishment and funding of global AIDS programs and the promotion of human rights and democratization in countries around the world. She was a member of the first Presidential Delegation to Africa to Investigate the Impact of HIV/AIDS on Children and a member of the Council on Foreign Relations’ Congressional Staff Roundtable on Asian Political and Security Issues.


In addition to U.S.-China relations, her areas of expertise include terrorism, trade, proliferation of weapons of mass destruction, human rights, U.S. foreign assistance programs, and international environmental issues. She is the Vice President for Development and Corporate Initiatives for the BlueGreen Alliance, and also serves on the board of directors of the Kaiser Aluminum Corporation and the nonprofit organization Asia Catalyst.

Commissioner Bartholomew received a Bachelor of Arts degree from the University of Minnesota, a Master of Arts in Anthropology from Duke University, and a Juris Doctorate from Georgetown University Law Center. She is a member of the State Bar of California.


http://www.c-spanvideo.org/program/ChinainU
Role of China in U.S. Economy
Nov 23, 2008

Carolyn Bartholomew talked about China’s role in the U.S. economy, focusing on current U.S. debt held by China and trade imbalances with the country. She responded to telephone calls and electronic mail.