Chinese Espionage: The Undermining of American Security
Chinese espionage persists, from spy balloons to state secrets theft, revealing CCP's pervasive infiltration.
On February 10, a former Google engineer allegedly stole trade secrets related to artificial intelligence (AI) technology while working with Chinese companies. This case highlights the ongoing issue of Chinese espionage in the United States. While the question of how Chinese intelligence operates is not well known, its impact and brazen actions have revealed that the Chinese Communist Party is not concerned about any significant repercussions from the United States and will continue with such actions.
COMPANY AND TECH ESPIONAGE
Linwei Ding is a 38-year-old Chinese national and former Google engineer who stole his former employer's data on new software developed at Google. The stolen information pertained to Google's AI technology, considered highly sensitive and valuable. Ding allegedly uploaded hundreds of confidential files from Google's internal systems to his cloud account in 2022 when he worked for two China-based technology companies. In December 2023, Google detected Ding's attempts to upload more files and severed his access to the company's internal systems. The U.S. Department of Justice has filed charges against Ding for stealing trade secrets. If convicted, he could face up to 10 years in prison and a fine of up to $250,000. Attorney General Merrick Garland made the following official statement regarding the case:
"The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk,"
"In this case, we allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China. We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them."
The FBI came forward to address the recent changes, with Director Christopher Wray issuing the following statement on the matter:
"Today's charges are the latest illustration of the lengths affiliates of companies based in the People's Republic of China are willing to go to steal American innovation,"
"The theft of innovative technology and trade secrets from American companies can cost jobs and have devastating economic and national security consequences. The FBI will continue vigorously pursuing those responsible for stealing U.S. companies' intellectual property and most closely guarded secrets."
According to the DOJ, as a software engineer at Google, Mr. Ding deliberately and secretly worked to "enrich" himself and two other Chinese-based tech companies. The technology Ding allegedly stole is the "building blocks" of Google's new advanced supercomputing data centers, built to support machine learning workloads that will train and host large AI models. Assistant Secretary Matthew S. Axelrod of the Commerce Department's Office for Export Enforcement referenced a new task force whose mission is to target espionage in major technology hubs like Silicon Valley stated the following:
"In the one year since its inception, the Disruptive Technology Strike Force has been relentless in protecting advanced U.S. technologies, like artificial intelligence, from malign actors. Let today's announcement serve as further warning – those who would steal sensitive U.S. technology risk finding themselves on the wrong end of a criminal indictment."
In 2019, Google hired Mr. Ding, who developed software for supercomputing data. Ding also had access to Google's confidential data on the hardware infrastructure of the previously mentioned data centers, supporting the AI models he is accused of stealing. Ding allegedly downloaded 500 confidential files containing data on Google's new AI models and copied those files onto his cloud account.
WHAT EXACTLY DID MR. DING STEAL?
These large AI models are powerful and are on the cutting edge of AI technology and computing power. The models can understand more nuanced language, generating more detailed responses to tasks, prompts, and questions. Google has been developing software and hardware to support this new advanced AI model, from advanced computer chips and data centers to Cluster Management Systems (CSM) that act as the brain, allowing for more powerful AI models. This crucial data was allegedly copied and stolen by Mr. Ding.
FURTHER INDICTMENTS
According to the DOJ report, Mr. Ding was indicted for espionage and violating his employer's agreement with Google. The report states that in June of 2022, Ding received a string of emails from the CEO of a small tech company in China, one of which offered him a position as Chief Technology Officer of the company on October 29, 2022. Ding later allegedly traveled to China and stayed there until March 25, 2023, when he participated in investor meetings on how to raise capital for the Chinese company. Allegedly, potential investors were told that Ding was the new company's Chief of Technology Officer and that he owned 20% of the company's stock. Unknown to Google, by May 30, 2023, Mr. Ding had founded his own technology company in the AI machine learning industry. Dings's new company advertised the development of a novel software platform that accelerates machine learning workloads, suspiciously much like the software he was responsible for as a Software Engineer for Google.
PREVALENCE OF CHINESE SPYING
The case of the ex-Google engineer is not an isolated incident. The United States has been grappling with the issue of Chinese espionage for years. According to a Center for Strategic and International Studies report, China is the world's most active and persistent perpetrator of economic espionage, targeting various industries, including technology, defense, and energy. The U.S. government has taken several measures to combat Chinese espionage, including creating the China Initiative in 2018. This initiative aimed to identify and prosecute those engaged in economic espionage and intellectual property theft on behalf of China. However, the program recently shut down due to concerns over racial profiling and its impact on scientific collaboration.
A more recent and alarming example is the story of Sgt. Korbein Schultz, an intelligence analyst for the National Guard who was accused and pleaded guilty to multiple indictment charges, including conspiring to obtain and disclose military defense information and bribery of a public official. The twenty-four-year-old was arrested at Fort Campbell, Tennessee. Henry C. Leventis, U.S. attorney for the Middle District of Tennessee, stated the following to reporters:
"The men and women of the United States Armed Forces dedicate their lives to maintain our national security. Our laws protecting national defense information are critical to that mission, and they must be enforced. Illegal dissemination of national defense information puts our country, our fellow citizens, members of our military, and our allies at risk."
Using his top-secret security clearance, Sgt. Schultz conspired with another individual, who is only referenced in the indictment as "Conspirator A," to have disclosed documents, photographs, and national defense materials since June 2022. The indictment states that Conspirator A recruited Schultz for his top-secret security clearance to gather information on the U.S. military. Some information included artillery rocket systems, hypersonic equipment, and future U.S. military development and force structure studies. According to the indictment, Conspirator A asked Schultz to provide information on lessons learned from the U.S. military on the war in Ukraine, for which he received $200. Conspirator A later asked for a "long-term partnership," and discussed with Sgt. Schultz about the possibility of recruiting other military members into their conspiracy. The indictment claims that before being caught, Sgt. Schultz received 14 payments that totaled $42,000. Reports suggest Conspirator A was a foreign national purporting to reside in Hong Kong.
INDUSTRIES MOST AFFECTED
The technology industry is one of the primary targets of Chinese espionage. Companies like Google, Apple, and Microsoft possess valuable intellectual property and trade secrets highly sought by Chinese entities. The theft of AI technology has become a significant concern, as it is considered a critical component of future technological development. The defense industry is another sector that Chinese intelligence targets. Sensitive information related to military technology and weapons systems is precious and can provide a strategic advantage to those who possess it. The issue of Chinese espionage has proved difficult to stamp out due to two factors: globalization of economics and private industries which has allowed American companies to be partially owned by foreign individuals and companies that are, in turn, controlled by their governments. Actions that the government has taken have been seen simply as racism and discrimination. Any foreign intelligence agency would use this factor as an advantage to place assets in critical positions for foreign influence, espionage, and sabotage. Without a strong deterrence and defense, adversaries will continue to exploit our weaknesses.