Tags: Chinese | Espionage | Case | Ends

Chinese Espionage Case Ends

Thursday, 04 August 2005 12:00 AM

According to the Bureau of Industry and Security (BIS), Wen and his associates conducted "the unlicensed export of national security controlled items to the People's Republic of China."

"I further found that such violations had been significant, deliberate and covert, and were likely to occur again, especially given the nature of the structure and relationships of the Respondents," stated a BIS announcement.

The sophisticated electronics and computer chips smuggled out of the U.S. by Wen can be used by the Chinese military for advanced missiles, radar or military communications devices.

Prior to his arrest, Ning Wen also worked as a paid informant for the FBI. Wen was employed as a manager for a subsidiary of The Manitowoc Company, a firm that currently holds a multimillion-dollar contract with the U.S. Navy.

According to the information obtained by the FBI, Wen stated that he knew the restricted electronic equipment was headed for the Chinese army.

"China is now desperately purchasing weapons ... developing weapons," said Wen while being secretly taped by the FBI.

"How is Jian Guo Qu's business? Well, if the war breaks out, his business will be booming," stated Wen on the recordings.

Wen would frequently travel to China for The Manitowoc Company. Once there, Wen would meet with Qu and Wang to determine Chinese army requirements for restricted U.S. electronics. Wen then faxed and telephoned his wife, Lin, with the lists of electronics.

Lin was responsible for ordering the items from U.S. manufacturers and shipping them to China. The U.S. manufacturers frequently reminded Lin that she had to obtain an export license to ship the items out of America.

"Investigation has revealed that when Lin is made aware that a particular commodity is export controlled, she will refrain from buying that particular commodity from the company which informed her of the export control laws," stated the charge affidavit.

"Instead, Lin would obtain the commodity from a different supplier and ship the commodity to China."

To smuggle the items out of the country, Lin filed shipping documents that listed different electronics or certified that no export license was required.

Qu and Wang then passed the restricted electronics on to the 54th Research Institute of the Ministry of Electronics Industry. The 54th Institute has been identified by the U.S. Commerce Department as posing "an unacceptable risk in the development of missiles."

Wen, Lin and Wang pleaded guilty to criminal violations of U.S. export laws. Wang has since returned to China after completing his sentence.

The Wen case illustrates the need to monitor and eliminate the estimated 3,000 Chinese army-owned front companies that operate inside the U.S. These companies, like Wen and his wife, spy for the Chinese army and steal both military and economic secrets.

The three primary Chinese intelligence units operating inside the U.S. are the Ministry of State Security (MSS), the Military Intelligence Department of the People's Liberation Army General Staff (MID/PLA or Second Department) and The Liaison Department, a unit in the PLA's General Political Department.

Military espionage against the U.S. is conducted by military attaches assigned to the Defense Attaches Office in the Chinese Embassy in Washington and the Military Staff Committee at the United Nations in New York City.

These attaches openly collect information from Western publications as well as from their contacts, in accordance with MID/PLA directives. However, the FBI and the U.S. Customs Service have detected and closed dozens of MID/PLA clandestine collection operations in the U.S.

The Chinese army espionage is a top priority for the communist leadership. The missions are aimed at sensitive and restricted proprietary/trade secret U.S. technology and economic information, particularly advanced civilian, military, dual-use and biotechnology.

China's official collectors of intelligence prefer to use collection methods that are low-key and nonthreatening. For example, the MSS, operating both in the United States and in China, tries to collect proprietary or sensitive U.S. information and technology in small increments, involving a large number of people for an extended period of time.

According to a CIA report to Congress on Chinese espionage activities against the U.S., the Chinese army frequently uses ethnic and racial bias to select its agents.

"Because most Chinese share a common cultural and historical background, Chinese leaders refer to all individuals of Chinese ancestry as 'overseas' Chinese. When approaching an individual of Chinese origin, the Chinese intelligence services secure his or her cooperation by playing on this shared ancestry," states the report filed by the CIA.

The Wen case is but one example of many. So many that to investigate and prosecute each, one at time, may be impossible. It is time the Bush administration shut down the PLA espionage operations here in the U.S. This can be accomplished in one swift stroke by shutting down the 3,000 known PLA companies that lie, cheat, spy and steal. This effort will not start a war with China but may prevent it.



Charles Smith will be on:

The Jerry Hughes Show on Friday, 8/5/05, at 3 p.m. Eastern time. Show information at http://www.cilamerica.com.

The George Putnam Show on Friday 8/5/05, at 1 p.m. Pacific time (4 p.m. Eastern time) on KCAA 1050 AM in Southern California; WPYT 560 AM in Pittsburgh; WLTH 1370 AM in Gary, Ind., and Chicago; and CRN Radio Network, WWW.CRNI.NET.


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According to the Bureau of Industry and Security (BIS), Wen and his associates conducted "the unlicensed export of national security controlled items to the People's Republic of China." "I further found that such violations had been significant, deliberate and covert, and...
Thursday, 04 August 2005 12:00 AM
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