Friday, December 15, 2006, 12/15/2006 07:51:00 AM

More Economic Espionage from China

From BusinessWeek.com, a story about Xiaodong Sheldon Meng, 42, an engineer and Chinese national with Canadian citizenship, who was indicted in California federal court yesterday on 36 felony counts, including economic espionage to benefit a foreign government and various violations of military technology export laws.

According to the article, prosecutors say Xiaodong stole the code for software made by Quantum3D Inc. that is used to train military fighter pilots, and tried to sell it to the Thai and Malaysian air forces and a company with ties to China's military.

And, the article says, Xiaodong's case marks only the third time prosecutors have charged someone with economic espionage to benefit a foreign government, the most serious crime under the Economic Espionage Act of 1996. It carries up to 15 years in prison, but no one has yet been convicted of the charge.

The big quote from U.S. Attorney, Kevin Ryan:

"Silicon Valley understands full well the threat they are faced with here. It's not only a threat to the economic value of the products being produced, but in some cases it's a threat to our national security and military infrastructure."

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