U.S. Red Flags 33 Chinese Companies, Charges China-based Telecom Giant With Stealing Secrets

U.S. Red Flags 33 Chinese Companies, Charges China-based Telecom Giant With Stealing Secrets

The U.S. Commerce Department has “red-flagged” 33 Chinese hi-tech companies amid growing concerns about the technology theft by Beijing-controlled entities. Adding these companies to the “unverified list” will restrict their ability to access products and technology developed by U.S. private sector players.

The blacklisted entities are “primarily hi-tech manufacturers, including those that produce laser components and pharmaceuticals, government research labs and two universities,” the Hong Kong daily South China Morning Post reported.

The announcement angered the Chinese regime. The county’s Communist Party (CCP) mouthpiece Global Times telling the U.S. to “correct mistake” and “return to the right path of win-win cooperation,” — a much repeated mantra as China’s state-owned companies continue to steal U.S. trade and technology secrets.

The Associated Press reported the latest measure taken against suspicious Chinese companies:

The Biden administration is raising red flags about 33 Chinese companies whose legitimacy it cannot verify, imposing new restrictions on their ability to receive shipments from U.S. exporters and requiring extra diligence from American companies that want to do business with them.

The Commerce Department said Monday that it was adding the companies to what is known as the “Unverified List,” a roster of businesses worldwide that are subjected to stricter export control because U.S. officials have been unable to do customary checks.

“The ability to verify the legitimacy and reliability of foreign parties receiving U.S. exports through the timely completion of end-use checks is a core principle of our export control system,” Matthew Axelrod, the department’s assistant secretary for export enforcement, said in a statement.

He added that the addition of 33 parties in the People’s Republic of China to the Unverified List “will assist U.S. exporters in conducting due diligence and assessing transaction risk, and signal to the PRC government the importance of their cooperation in scheduling end-use checks.”

The move comes as U.S. prosecutors charge a leading Chinese tech manufacturer of stealing proprietary mobile technology initially developed by Motorola, The Wall Street Journal reported.

Reuters reported the charges brought against the Chinese telecom giant:

 The U.S. Justice Department said on Monday it has brought criminal charges against China-based telecommunications company Hytera, accusing it of conspiring with Motorola Solutions Inc employees to steal the American company’s digital mobile radio technology.

In a partially redacted indictment unsealed in Chicago, the government said Shenzhen-based Hytera Communications Corp recruited Motorola employees in Malaysia to steal proprietary trade data about the radios, known as walkie-talkies. (…)

The indictment said Hytera recruited Motorola employees from 2007 through 2020, and that these workers received higher salaries and benefits than what they received at Motorola in exchange for stealing the trade secrets.

Hytera was charged with 21 criminal counts including conspiracy to commit theft of trade secrets. Hytera and the unidentified other defendants were also charged with possessing or attempting to possess stolen trade secrets.

Many such shady Chinese companies are not merely stealing commercial secrets to undermine their U.S. competitors. They are instruments of espionage in the Chinese government and the military.

In February 2021, the CCP-run parliament unveiled an economic plan to surpass the U.S. in 15 years. “By the end of that road map, in 2035, China sees itself replacing the U.S. as the world’s largest economy,” the Japanese business daily Nikkei noted.

The Chinese regime wants to build its military power to complement its economic rise. Beijing plans to transform the PLA into a ‘fully modern army’ by 2027. Xi Jinping’s regime is pursuing the Military-Civil Fusion (MCF) policy, which gives the country’s People’s Liberation Army (PLA) sweeping powers to use Chinese investments, companies, and research institutions to get its hands on cutting-edge technology being developed in the United States.

The Communist regime has ambitious plans as it dreams of dominating the world militarily. A 2021 report published by the DC-based National Bureau of Asian Research found that the Military-Civil Fusion (MCF) strategy aims to make the “People’s Liberation Army into a ‘world-class military’ and leading the world in emerging and disruptive technologies by 2049 as core national goals for China.”

Donations tax deductible
to the full extent allowed by law.