America's 350000 Chinese Spies

China is using Chinese students to steal secrets
By Zachary Cohen and Alex Marquardt

Chinese "student" spies

"Student" spy Ji Chaoqun

Washington -- In August 2015, an electrical engineering student in Chicago sent an email to a Chinese national titled "Midterm test questions."
More than two years later, the email would turn up in an FBI probe in the Southern District of Ohio involving a Chinese intelligence officer who was trying to acquire technical information from a defense contractor.
Investigators took note.
They identified the email's writer as Ji Chaoqun, a Chinese student who would go on to enlist in the US Army Reserve. 

His email, they say, had nothing to do with exams.
Instead, at the direction of a high-level Chinese intelligence official, Ji attached background reports on eight US-based individuals who Beijing could target for potential recruitment as spies.
The eight -- naturalized US citizens originally from Taiwan or China -- had worked in science and technology. 

Seven had worked for or recently retired from US defense contractors. 

All of them were perceived as rich targets for a new form of espionage that China has been aggressively pursuing to win a silent war against the US for information and global influence.

Ji was arrested in September last year, accused of acting as an "illegal agent" at the direction of a "high-level intelligence officer" of a provincial department of the Ministry of State Security, China's top espionage agency, the Department of Justice said at the time.
He was formally indicted by a grand jury on January 24. 

Ji appeared in federal court in Chicago and pleaded not guilty, according to Joseph Fitzpatrick, a spokesman for the US attorney's office in Chicago. 

While Ji has not been convicted, the circumstances outlined in his case demonstrate how China is using people from all walks of life with increasing frequency, current and former US intelligence officials tell CNN.
Beijing is leaning on expatriate Chinese scientists, businesspeople and students like Ji -- one of roughly 350,000 from China who study in the US every year -- to gain access to anything and everything at American universities and companies that's of interest to Beijing, according to current and former US intelligence officials, lawmakers and several experts.
The sheer size of the Chinese student population at US universities presents a major challenge for law enforcement and intelligence agencies tasked with striking the necessary balance between protecting America's open academic environment and mitigating the risk to national security.
While it remains unclear just how many of these students are on the radar of law enforcement, current and former intelligence officials told CNN that they all remain tethered to the Chinese espionage machine in some way.
It's part of a persistent, aggressive Chinese effort to undermine American industries, steal American secrets and eventually diminish American influence in the world so that Beijing can advance its own agenda, US officials, analysts and experts told CNN.
CIA Director Gina Haspel warned last year that China intends "to diminish US influence to advance their own goals."
China's approach to espionage is taking on added urgency as ties between Beijing and Washington sour over trade differences, cyberattacks and standoffs over military influence in Asia.

"China's intelligence services exploit the openness of American society, especially academia and the scientific community, using a variety of means," according to the intelligence community's World Wide Threat Assessment.

Lawmakers are also sounding the alarm.
"There is no comparison to the breadth and scope of the Chinese threat facing America today, as they actively seek to supplant the US globally," Republican Sen. Marco Rubio of Florida told CNN, noting that Russia and China have taken similar approaches when it comes to nontraditional espionage.

'Covert influencers'
For more than a decade, US law enforcement and intelligence officials have raised internal concerns about US universities becoming soft targets for Chinese intelligence services that use Chinese students and staff to access emerging technologies, according to multiple former US officials.
But in recent months, senior officials have expressed a renewed sense of urgency in addressing the issue and sought to increase public awareness by highlighting the threat during congressional testimony and while speaking at various security forums.
While US officials stress that they believe some Chinese students are here for legitimate purposes, they have also made it clear that the Trump administration continues to grapple with counterintelligence concerns posed by Chinese agents seeking to exploit vulnerabilities within academic institutions.
Rather than having trained spies attempt to infiltrate US universities and businesses, Chinese intelligence services have strategically utilized members of its student population to act as "access agents" or "covert influencers," according to Joe Augustyn, a former CIA officer with firsthand knowledge of the issue from his time at the agency.
Creating this degree of separation allows the Chinese government to maintain some deniability should an operation become exposed, Augustyn said.
"We allow 350,000 or so Chinese students here every year," William Evanina, director of the National Counterintelligence and Security Center, said last April during an Aspen Institute conference. 

"That's too much. We have a very liberal visa policy for them. It is a tool that is used by the Chinese government to facilitate nefarious activity here in the US."
Chinese students now constitute the largest foreign student body in the US, according to data from the Institute of International Education.
US intelligence officials have taken note of the steady increase in Chinese students entering the country each year and are well aware of the challenges associated with that trend.
Along with cyber-intrusion and strategic investing in American businesses, senior US intelligence officials told CNN on Tuesday that China is tapping into its massive network of Chinese students to compress the time it takes to acquire certain capabilities.

"In a world where technology is available, where we are training their scientists and engineers, and their scientists and engineers were already good on their own, we are just making them able to not have to toil for the same amount of time to get capabilities that will rival or test us," a senior official in the office of Director of National Intelligence Dan Coats said.

Addressing that problem is difficult given the large population of Chinese student spies sent to the US each year.
"We know without a doubt that anytime a graduate student from China comes to the US, they are briefed when they go, and briefed when they come back," according to Augustyn.

"There is no question in my mind, depending on where they are and what they are doing, that they have a role to play for their government."

In Ji's case, he was first approached by a Chinese intelligence officer who, initially at least, used a false identity, according to FBI Special Agent Andrew McKay, who filed a criminal complaint against Ji in the US District Court in Chicago.
The complaint charges Ji with one count of knowingly acting in the US as an agent of Chinese government without prior notification to the attorney general. 

Ji has been detained since his arrest in September, according to his lawyer.
Like thousands of Chinese nationals who come to the US each year, Ji entered the country on an F1 visa -- used for international students in academic programs.
Citing immigration records, the complaint states that Ji's goal, when he landed in Chicago in August 2013, was to study electrical engineering at the Illinois Institute of Technology, where he ultimately earned a master's degree.
By December, Ji had been approached by the high-level Chinese intelligence official, who presented himself as a professor at Nanjing University of Aeronautics and Astronautics.
Ji, now 27, eventually realized who this official and his colleagues really were, according to the criminal complaint.
Still, court documents say he would funnel them background reports on other Chinese civilians living in the US who might be pressured to serve as spies -- in this case, in the strategically critical US industries of aerospace and technology. 

And he would lie to US officials about it, according to the complaint filed by FBI investigators.
In their response, the Chinese government did not comment on the current status of Ji's case.
But in September, Chinese Foreign Ministry spokesman Geng Shuang told CNN he was "unaware of the situation" when asked about Ji's arrest during a press briefing.
According to the complaint, FBI agents discovered about 36 text messages on one iCloud account that Ji and the intelligence officer exchanged between December 2013 and July 2015. 

In 2016, after he graduated, Ji enlisted in the US Army Reserve under a program in which foreign nationals can be recruited if their skills are considered "vital to the national interest."
As part of his Army interview and in his security clearance application, Ji was asked if he'd had contact with foreign security services, the complaint says.
He answered "no."
The Washington Post previously reported that Ji's case has been linked to the indictment of a Chinese intelligence officer named Xu Yanjun.
Xu's indictment was unsealed in October after he was arrested in Belgium for stealing trade secrets from US aerospace companies. 

He is the first Chinese intelligence officer to be extradited for prosecution in the US. 

He has pleaded not guilty.

Complex counter intelligence challenge
FBI Director Christopher Wray, in the past year, has sought to focus repeatedly on the threat from Chinese students in US universities trying to get access to sensitive military and civilian research.
"They're exploiting the very open research and development environment that we have," Wray told a Senate Intelligence Committee hearing last year, expressing concern that academic officials aren't taking the threat from China seriously enough.
But Wray told Senate lawmakers he has seen reasons for optimism.
"One of the things that I've been most encouraged about in an otherwise bleak landscape is the degree to which -- as Director Coats was alluding to -- American companies are waking up, American universities are waking up, our foreign partners are waking up," Wray said.

Still, the issue continues to pose a complex counterintelligence challenge for the US.

The Chinese are notorious for appealing to the nationalism and loyalty of their citizens to coerce them into carrying out acts of espionage, lawmakers and intelligence officials say.
Sen. Mark Warner of Virginia, the leading Democrat on the Senate's Select Committee on Intelligence, stressed that it is important to recognize "that the Chinese government has enormous power over its citizens."
"In China, only the government can grant someone permission to leave the country to study or work in the United States and we have seen the Chinese government use their power over their citizens to encourage those citizens to commit acts of scientific or industrial espionage to the benefit of the Chinese government," he told CNN.
The ruling Communist Party in China has tightened its grip over all aspects of Chinese society, including academia, under Xi Jinping, who has routinely said that "the Party exercises overall leadership over all areas of endeavor in every part of the country."

The State Department has considered implementing stricter vetting measures for F1 Visa applicants like Ji in an effort to address the problem, administration officials have told CNN, though the details of that plan remain unclear.
The Trump administration has also insisted that any trade deal with China must address concerns about Beijing's use of covert operations to steal US government secrets and intellectual property belonging to American private-sector businesses.
Ahead of President Donald Trump's December dinner meeting with Xi in Buenos Aires, the top US trade negotiator released a 50-page report showing Beijing had done little to fix unfair policies and that it continued to conduct and support cyber-enabled economic espionage that has stolen trillions of dollars in intellectual property.
The Trump administration has said the huge waves of tariffs it has slapped on Chinese goods are part of an effort to stop Beijing from unfairly getting its hands on American technology.

Prior to releasing the National Intelligence Strategy, The Office of the Director of National Intelligence issued new warnings and information to technology and aviation companies believed to be targets to help the private sector guard against growing threats from Chinese intelligence entities.
A US intelligence official told CNN that American companies need to be alert to the growing threat. "Whether it is a Chinese national, student, businessman or through cyber means, companies need to know they are up against China who wants their information," the official said.
US authorities are also taking action beyond just issuing warnings.
Since August 2017, the Justice Department has indicted several individuals and corporations on charges related to economic espionage and intellectual property theft, predominantly in the aerospace and high-technology sectors.
One October 2018 indictment accused two Chinese intelligence officers of attempting to hack and infiltrate private companies over the course of five years in an attempt to steal technology.
The indictment also targeted six of what it said were the officers' paid hackers and two Chinese nationals, employed by a French aerospace company, who were told by the officers to obtain information about a turbofan engine developed in partnership with a US-based plane maker.

And prior to that, in September, US authorities arrested Ji for allegedly spying on behalf of Beijing.
McKay and the FBI used search warrants to scour emails and texts that were used to piece together what they claim is the story of how Ji was lured in and exploited by his Chinese spymasters.
They sent an undercover agent who pretended he'd been directed by Chinese intelligence to meet Ji after one of the student's alleged handlers had been arrested.
Video and audio recordings captured Ji telling the undercover FBI officer he knew he'd been helping a "confidential unit" of the government -- exactly the actions he'd denied in his interviews for both a student visa and his entry to the US Army Reserve program, according to the complaint.
"Ji specifically denied having had contact with Chinese government within the past seven years," the Department of Justice said in a press release, citing the complaint.

Still, US officials say addressing the issue requires striking a delicate balance and more than just outreach.
"Despite active engagement with academia, industry, and the greater public on this issue, however, Chinese efforts to exploit America's accessible academic environment continue to grow," E.W. Priestap, assistant director of the FBI's counterintelligence division, told lawmakers last year. 

"In particular, as internet access, cyber exploitation, transnational travel, and payment technologies proliferate, so, too, do Chinese options for exploiting America's schools for domestic gain."

No Country for Chinese Men

FBI Urges Universities To Monitor Chinese Students And Scholars In The U.S.
By EMILY FENG

University administrators say the FBI, whose headquarters are shown above, has urged them to monitor Chinese students and scholars.

U.S. intelligence agencies are encouraging American research universities to develop protocols for monitoring students and visiting scholars from Chinese state-affiliated research institutions, as U.S. suspicion toward China spreads to academia.
Since last year, FBI officials have visited at least 10 members of the Association of American Universities, a group of 62 research universities, with an unclassified list of Chinese research institutions and companies.
Universities have been advised to monitor students and scholars associated with those entities on American campuses, according to three administrators briefed at separate institutions. 

FBI officials have also urged universities to review ongoing research involving Chinese individuals that could have defense applications, the administrators say.
"We are being asked what processes are in place to know what labs they are working at or what information they are being exposed to," Fred Cate, vice president of research at Indiana University, tells NPR. 

In a statement responding to NPR's questions, the FBI said it "regularly engages with the communities we serve. As part of this continual outreach, we meet with a wide variety of groups, organizations, businesses, and academic institutions. The FBI has met with top officials from academia as part of our ongoing engagement on national security matters."
While law enforcement agents have discussed university monitoring of other nationalities as well, these FBI briefings addressed visitors from China in particular who are involved in science, technology, engineering and math.

Administrators say the universities briefed by the FBI have not yet implemented additional monitoring protocols. 

Separately, intelligence officers have also briefed hundreds of American CEOs, investors and think tank experts on Chinese cybersecurity and espionage threats. 

"What we provide them is the classified information that we get from the collection priorities of China specifically: What they're trying to collect on, what they're interested in our campuses," William Evanina, director of the National Counterintelligence and Security Center, told NPR.
This March, U.S. intelligence officials briefed about 70 college administrators of the American Council on Education, according to university participants. 

The officials said the presidents should increase oversight of Chinese researchers and avoid research funding from Chinese firms like Huawei.
The nation's primary biomedical research agency, the National Institutes of Health, is now investigating grant recipients for not disclosing collaboration or funding from China and for sharing peer-review grant material with Chinese researchers. 

"Chinese entities have mounted systematic programs to influence NIH researchers and peer reviewers," warned NIH Director Francis Collins in a memo sent to more than 10,000 research institutions last August.

In May, the Commerce Department put Huawei on a trade blacklist, which prevents U.S. companies from selling products to the Chinese telecom firm without federal authorization. 

But the pressure to divest from research collaborations with Huawei and ZTE, another telecom company, began early last year, said three university administrators.
"For months up until [May], government officials were saying, 'We really don't think you should be doing business with Huawei,' " says Cate. 

"We said, 'Why don't you put them on a list and then we won't do business?' And they're like, 'Oh, the list process is way too slow.' "
The FBI visits have caused uncertainty among U.S. academics about whether to accept federal grants for research that may involve Chinese scholars. 

"We don't say you can't, because we don't have any legal authority to say they can't," Cate says. 

"But we say you should be aware there may be some sensitivity about this."
Several university presidents have issued statements this year reaffirming their commitment to Chinese researchers and students.
Last month, pro-China Yale University's president, Peter Salovey, said he was "working with my presidential colleagues in the Association of American Universities (AAU) to urge federal agencies to clarify concerns they have about international academic exchanges. The AAU has encouraged agencies to use the tools already in place, such as export controls, while affirming the principle of open academic exchange for basic research."
Salovey's office declined to comment further when contacted by NPR.
Universities and companies use software that automatically reviews international research collaborations, commercial transactions and other exchanges and then matches them up with existing blacklists to ensure they do not violate export control laws.
Numerous universities, including the Massachusetts Institute of Technology, Stanford University and the University of Illinois, have already cut off research collaborations with Huawei.
Besides Huawei, no other Chinese entities singled out to universities by the FBI are currently on a trade blacklist, according to the three university administrators.
That means any monitoring of specific Chinese individuals at the university level would have to be done manually, when admitting or employing them, possibly leaving a wide margin of error during evaluation.
"You're really looking at compliance systems that have to be rolled out on a department-by-department basis and person-by-person level to see if you're sticking research data in an envelope and mailing it to China," Cate says.
The Trump administration has long accused China of stealing American technology, a key factor behind the trade war between the two countries.

FBI Director Christopher Wray addresses the Council on Foreign Relations on April 26 in Washington, D.C. Wray spoke about "the FBI's role in protecting the United States from today's global threats."

As the mood in Washington, D.C., becomes more aggressive toward China, intelligence agencies have been visiting not just universities but also American tech companies to dissuade them from collaborations with Chinese entities.
"We have to wake this country up to what China is doing," Sen. Mark Warner, Va.-D, said at the Brookings Institution last month. 

"For this reason, I have been convening meetings between the intelligence community and outside stakeholders in business and academia to ensure they have the full threat picture and, hopefully, make different decisions about Chinese partnerships."

China's 340,000 potential or actual spies
Chinese students have come under particular suspicion. 

More than 340,000 were studying in the U.S. last year, according to the Department of Homeland Security. 

Since last July, Chinese students studying, in particular, science and technology fields must undergo additional screening, resulting in delayed visas for hundreds of students.
In May, Republicans introduced legislation in the House and Senate that would deny visas to Chinese researchers affiliated with Chinese military institutions.
"The Chinese intelligence services strategically use every tool at their disposal — including state-owned businesses, students, researchers and ostensibly private companies — to systematically steal information and intellectual property," FBI Director Christopher Wray said at the Council on Foreign Relations in April.
Former FBI agents say the bureau's recent visits to universities are merely an extension of long-running efforts to collaborate with the private sector and academia on national security issues.
"What the FBI has been doing is really more of an outreach and education program," says Todd K. Hulsey, a former counterintelligence official who retired from the FBI in 2014. 

Hulsey explained that such meetings began as early as two decades ago over concerns that Chinese student associations were fronts for Chinese intelligence recruiting: "It's to let these universities know that there is an existing threat to our economy."
National security concerns at universities increased after the 1991 collapse of the Soviet Union, which sent a wave of former Soviet bloc researchers to the U.S., says Edward Shaw, a former FBI special agent who retired in 2014.
Even back then, however, government agencies contacted universities with specific individuals of concern rather than presenting a broad list of institutions.
"It's casting a wide net," says Shaw. 

"When you're getting information from various government agencies and other trusted sources that a specific person is in the country and you are more targeted, you're using your resources better."

Born to Spy

China is using student spies to steal secrets

By Zachary Cohen and Alex Marquardt

Born to spy: Chinese students in the USA

Washington -- In August 2015, an electrical engineering student in Chicago sent an email to a Chinese national titled "Midterm test questions."
More than two years later, the email would turn up in an FBI probe in the Southern District of Ohio involving a Chinese intelligence officer who authorities believed was trying to acquire technical information from a defense contractor.
Investigators took note.
They identified the email's writer as Ji Chaoqun, a Chinese student who would go on to enlist in the US Army Reserve. 

His email, they say, had nothing to do with exams.

Ji Chaoqun arrested in US on spying charges

Instead, at the direction of a high-level Chinese intelligence official, Ji attached background reports on eight US-based individuals who Beijing could target for recruitment as spies, according to a federal criminal complaint.
The eight -- naturalized US citizens originally from Taiwan or China -- had worked in science and technology. 

Seven had worked for or recently retired from US defense contractors. 

The complaint says all of them were perceived as rich targets for a new form of espionage that China has been aggressively pursuing to win a silent war against the US for information and global influence.

Ji was arrested in September last year, accused of acting as an "illegal agent" at the direction of a "high-level intelligence officer" of a provincial department of the Ministry of State Security, China's top espionage agency, the Department of Justice said at the time.
He was formally indicted by a grand jury on January 24. 

Ji appeared in federal court in Chicago on Friday and pleaded not guilty, according to Joseph Fitzpatrick, a spokesman for the US attorney's office in Chicago. 

He is due to appear in court next on February 26 and will remain in detention until then, Fitzpatrick said.
While Ji has not been convicted, the circumstances outlined in his case demonstrate how China is using people from all walks of life with increasing frequency, current and former US intelligence officials tell CNN.
Beijing is leaning on expatriate Chinese scientists, businesspeople and students like Ji -- one of roughly 350,000 from China who study in the US every year -- to gain access to anything and everything at American universities and companies that's of interest to Beijing.
The sheer size of the Chinese student population at US universities presents a major challenge for law enforcement and intelligence agencies tasked with striking the necessary balance between protecting America's open academic environment and mitigating the risk to national security.
While it remains unclear just how many of these students are on the radar of law enforcement, current and former intelligence officials told CNN that they all remain tethered to the Chinese government in some way.
It's part of a persistent, aggressive Chinese effort to undermine American industries, steal American secrets and diminish American influence in the world so that Beijing can advance its own agenda.
CIA Director Gina Haspel warned last year that China intends to diminish US influence to advance their own goals.
China's approach to espionage is taking on added urgency as ties between Beijing and Washington sour over trade differences, cyberattacks and standoffs over military influence in Asia.

"China's intelligence services exploit the openness of American society, especially academia and the scientific community, using a variety of means," according to the intelligence community's World Wide Threat Assessment released Tuesday.
The problem is with the Chinese government, a US official told CNN, adding that the counterintelligence issue is making sure those individuals are coming to the US for legitimate purposes.
Lawmakers are also sounding the alarm.
"There is no comparison to the breadth and scope of the Chinese threat facing America today, as they actively seek to supplant the US globally," Republican Sen. Marco Rubio of Florida told CNN, noting that Russia and China have taken similar approaches when it comes to nontraditional espionage.

'Covert influencers'
For more than a decade, US law enforcement and intelligence officials have raised internal concerns about US universities becoming soft targets for Chinese intelligence services that use students and staff to access emerging technologies, according to multiple former US officials.
But in recent months, senior officials have expressed a renewed sense of urgency in addressing the issue and sought to increase public awareness by highlighting the threat during congressional testimony and while speaking at various security forums.
US officials made it clear that the Trump administration continues to grapple with counterintelligence concerns posed by Chinese agents seeking to exploit vulnerabilities within academic institutions.
Rather than having trained spies attempt to infiltrate US universities and businesses, Chinese intelligence services have strategically utilized members of its student population to act as "access agents" or "covert influencers," according to Joe Augustyn, a former CIA officer with firsthand knowledge of the issue from his time at the agency.
Creating this degree of separation allows the Chinese government to maintain some deniability should an operation become exposed, Augustyn said.
"We allow 350,000 or so Chinese students here every year," William Evanina, director of the National Counterintelligence and Security Center, said last April during an Aspen Institute conference. 

"That's a lot. We have a very liberal visa policy for them. And it is a tool that is used by the Chinese government to facilitate nefarious activity here in the US."
Chinese students now constitute the largest foreign student body in the US, according to data from the Institute of International Education.
US intelligence officials have taken note of the steady increase in Chinese students entering the country each year and are well aware of the challenges associated with that trend.
Along with cyber-intrusion and strategic investing in American businesses, senior US intelligence officials told CNN on Tuesday that China is tapping into its network of students to compress the time it takes to acquire certain capabilities.

"In a world where technology is available, where we are training their scientists and engineers, and their scientists and engineers were already good on their own, we are just making them able to not have to toil for the same amount of time to get capabilities that will rival or test us," a senior official in the office of Director of National Intelligence Dan Coats said.
But addressing that problem is difficult given the large population of Chinese students sent to the US each year.
"We know without a doubt that anytime a graduate student from China comes to the US, they are briefed when they go, and briefed when they come back," according to Augustyn.
"There is no question in my mind, depending on where they are and what they are doing, that they have a role to play for their government."
In Ji's case, he was first approached by a Chinese intelligence officer who, initially at least, used a false identity, according to FBI Special Agent Andrew McKay, who filed a criminal complaint against Ji in the US District Court in Chicago.
The complaint charges Ji with one count of knowingly acting in the US as an agent of a foreign government without prior notification to the attorney general. 

Ji has been detained since his arrest in September, according to his lawyer.
Like thousands of Chinese nationals who come to the US each year, Ji entered the country on an F1 visa -- used for international students in academic programs.
Citing immigration records, the complaint states that Ji's goal, when he landed in Chicago in August 2013, was to study electrical engineering at the Illinois Institute of Technology, where he ultimately earned a master's degree.
By December, Ji had been approached by the high-level Chinese intelligence official, who presented himself as a professor at Nanjing University of Aeronautics and Astronautics.
Ji, now 27, eventually realized who this official and his colleagues really were, according to the criminal complaint.
Still, court documents say he would funnel them background reports on other Chinese civilians living in the US who might be pressured to serve as spies -- in this case, in the strategically critical US industries of aerospace and technology. 

And he would lie to US officials about it, according to the complaint filed by FBI investigators.
In their response, the Chinese government did not comment on the current status of Ji's case.
But in September, Chinese Foreign Ministry spokesman Geng Shuang told CNN he was "unaware of the situation" when asked about Ji's arrest during a press briefing.
According to the complaint, FBI agents discovered about 36 text messages on one iCloud account that Ji and the intelligence officer exchanged between December 2013 and July 2015. 

In 2016, after he graduated, Ji enlisted in the US Army Reserve under a program in which foreign nationals can be recruited if their skills are considered "vital to the national interest."
As part of his Army interview and in his security clearance application, Ji was asked if he'd had contact with foreign security services, the complaint says.
He answered "no."
The Washington Post previously reported that Ji's case has been linked to the indictment of a Chinese intelligence officer named Xu Yanjun.

Xu Yanjun is accused of seeking to steal trade secrets from a US company that leads the way in aerospace

Xu's indictment was unsealed in October after he was arrested in Belgium for stealing trade secrets from US aerospace companies. 

He is the first Chinese intelligence officer to be extradited for prosecution in the US. 

He has pleaded not guilty.

Complex counter intelligence challenge
FBI Director Christopher Wray, in the past year, has sought to focus repeatedly on the threat from China and its use of Chinese students in US universities to try to get access to sensitive military and civilian research.
"They're exploiting the very open research and development environment that we have," Wray told a Senate Intelligence Committee hearing last year, expressing concern that academic officials aren't taking the threat from China seriously enough.
But on Tuesday, Wray told Senate lawmakers he has seen reasons for optimism.
"One of the things that I've been most encouraged about in an otherwise bleak landscape is the degree to which -- as Director Coats was alluding to -- American companies are waking up, American universities are waking up, our foreign partners are waking up," Wray said.
Still, the issue continues to pose a complex counterintelligence challenge for the US.
The Chinese are notorious for appealing to the nationalism and loyalty of their citizens to coerce them into carrying out acts of espionage.
Sen. Mark Warner of Virginia, the leading Democrat on the Senate's Select Committee on Intelligence, stressed that it is important to recognize "that the Chinese government has enormous power over its citizens."
"In China, only the government can grant someone permission to leave the country to study or work in the United States and the Chinese government use their power over their citizens to encourage those citizens to commit acts of scientific or industrial espionage to the benefit of the Chinese government," he told CNN.
The ruling Communist Party in China has tightened its grip over all aspects of Chinese society, including academia, under Xi Jinping, who has routinely said that "the Party exercises overall leadership over all areas of endeavor in every part of the country."

The State Department has considered implementing stricter vetting measures for F1 Visa applicants like Ji in an effort to address the problem, administration officials have told CNN, though the details of that plan remain unclear.
The Trump administration has also insisted that any trade deal with China must address concerns about Beijing's use of covert operations to steal US government secrets and intellectual property belonging to American private-sector businesses.
Ahead of President Donald Trump's December dinner meeting with Xi in Buenos Aires, the top US trade negotiator released a 50-page report showing Beijing had done little to fix unfair policies and that it continued to conduct and support cyber-enabled economic espionage that has stolen trillions of dollars in intellectual property.
The Trump administration has said the huge waves of tariffs it has slapped on Chinese goods are part of an effort to stop Beijing from unfairly getting its hands on American technology.

Prior to releasing the National Intelligence Strategy, The Office of the Director of National Intelligence issued new warnings and information to technology and aviation companies believed to be targets to help the private sector guard against growing threats from Chinese intelligence entities.
A US intelligence official told CNN that American companies need to be alert to the growing threat. "Whether it is a foreign national, student, businessman or through cyber means, companies need to know they are up against nations who want their information," the official said.
US authorities are also taking action beyond just issuing warnings.
Since August 2017, the Justice Department has indicted several individuals and corporations on charges related to economic espionage and intellectual property theft, predominantly in the aerospace and high-technology sectors.
One October 2018 indictment accused two Chinese intelligence officers of attempting to hack and infiltrate private companies over the course of five years in an attempt to steal technology.
The indictment also targeted six of what it said were the officers' paid hackers and two Chinese nationals, employed by a French aerospace company, who were told by the officers to obtain information about a turbofan engine developed in partnership with a US-based plane maker.

The Chinese government did not respond to CNN's request for comment on the case.
In September, US authorities arrested Ji for spying on behalf of Beijing.
McKay and the FBI used search warrants to scour emails and texts that were used to piece together what they claim is the story of how Ji was lured in and exploited by his Chinese spymasters.
They sent an undercover agent who pretended he'd been directed by Chinese intelligence to meet Ji after one of the student's handlers had been arrested.
Video and audio recordings captured Ji telling the undercover FBI officer he knew he'd been helping a "confidential unit" of the government -- exactly the actions he'd denied in his interviews for both a student visa and his entry to the US Army Reserve program, according to the complaint.
"Ji specifically denied having had contact with a foreign government within the past seven years," the Department of Justice said in a press release, citing the complaint.
Still, US officials say addressing the issue requires striking a delicate balance and more than just outreach.
"Despite active engagement with academia, industry, and the greater public on this issue, however, Chinese efforts to exploit America's accessible academic environment continue to grow," E.W. Priestap, assistant director of the FBI's counterintelligence division, told lawmakers in June last year. "In particular, as internet access, cyber exploitation, transnational travel, and payment technologies proliferate, so, too, do Chinese options for exploiting America's schools for domestic gain."