Feds: Chinese spy tried to steal US aviation trade secrets

AP:

A Chinese spy who allegedly attempted to steal trade secrets from several American aviation and aerospace companies was charged Wednesday and extradited to the U.S.

Yanjun Xu, an operative of the Chinese Ministry of State Security, is accused of recruiting experts who worked at aviation companies and paying them stipends to travel to China in order to obtain trade secrets, the Justice Department said.

From 2013 until he was arrested in April, Xu would recruit employees from major aerospace companies, including GE Aviation, and convince them to travel to China under the guise that they would give a presentation at a university, prosecutors said. Court papers document how Xu and other intelligence operatives planned to obtain “highly sensitive information” from the experts.

John Demurs, the assistant attorney general in charge of national security, said the case was a “significant economic espionage matter” and was the latest proof that China is trying to steal information from American companies.

According to the indictment, Xu recruited a GE Aviation employee, who sent him a presentation in February that contained the company’s proprietary information. Xu later followed up with the employee asking for specific technical information and then asked the employee to meet in Europe, where he wanted the worker to provide additional information from GE, according to court papers.

Xu was arrested after traveling to Belgium in April. After his appeals failed, he was extradited to the United States on Tuesday and is scheduled to make his first court appearance Wednesday afternoon in federal court in Cincinnati, Ohio.

A spokesman for GE Aviation, a General Electric Co. division based in suburban Cincinnati, said it’s been cooperating for months with the FBI in a case that targeted a former employee.

“The impact to GE Aviation is minimal thanks to early detection, our advanced digital systems and internal processes, and our partnership with the FBI,” GE Aviation spokesman Perry Bradley said.

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