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vendredi 17 janvier 2020

Germany Investigates 3 Suspected of Spying for China

Raids were carried out on the homes and offices of the three people
By Melissa Eddy

The Chinese Embassy in Berlin. A spokesman for Germany’s federal prosecutor said the Chinese intelligence service was involved in the inquiry.

BERLIN — German authorities raided the homes and offices of three people suspected of spying for the Chinese government, officials said on Thursday, giving no details about their identities or the nature of the alleged espionage.
“This is a preliminary investigation against three known persons,” said Markus Schmitt, a spokesman for the German federal prosecutor, Peter Frank
None of the three have been arrested, he said.
The raid comes amid an intensifying debate in Berlin over the country’s relationship with Huawei, the Chinese technology giant used for espionage by Beijing.
On Thursday, Angela Merkel met with senior lawmakers in her party as part of continuing efforts to resolve a dispute over whether to allow Huawei to help build the country’s 5G next-generation mobile network.
Germany has been concerned about the threat posed by Chinese hackers seeking to steal information from the country’s companies, research facilities and ministries. 
But if sufficient evidence is found in the current case, it would be one of the first in years involving old-fashioned human espionage.
German officials were sifting through evidence gathered in the raids, which were carried out early Wednesday on nine homes and offices in Brussels and Berlin, as well as in the German states of Baden-Württemberg and Bavaria, Mr. Schmitt said.
The Chinese intelligence service is also involved in the inquiry, Mr. Schmitt said.
The German newsmagazine Der Spiegel, which first reported the raids, said that the three people targeted were suspected of passing private and social information to China’s ministry of state security.
Der Spiegel said that one of the three was a German national who had worked as a diplomat for the European Union until 2017, when he switched to a well-known consulting company. 
The other two work for a different consulting company, the report said.
Although some of the searched properties are in Brussels, a spokeswoman for the Brussels-based European Commission said on Thursday that none of its premises had been searched. 
She also said it had not received any requests to work with the German authorities or to hand over any evidence.
“No searches were conducted in the premises of our buildings, we haven’t been contacted by the German authorities,” said the spokeswoman, Virginie Battu-Henriksson.
European Union diplomats are normally senior envoys from their own member states who join the bloc’s diplomatic ranks. 
Many go on to join lobby firms or think tanks after retirement. 
If proven that the suspect was indeed spying for China, it would be a first for the bloc’s foreign policy branch.
China is one of Germany’s most important trading partners, and the two countries collaborate on international issues like climate change and hold regular government-level discussions.
But the relationship has come under scrutiny since the Chinese acquired several German technology companies in 2016. 
The next year, Germany’s domestic intelligence agency accused China of using LinkedIn and other social media sites to infiltrate the government in Berlin.
A year ago, Poland arrested two people, including a Chinese employee of Huawei, and charged them with spying for Beijing.

lundi 16 décembre 2019

Chinese Espionage: U.S. Expelled Chinese Officials After Breach of Military Base

Chinese Embassy officials trespassed onto a Virginia base that is home to Special Operations forces. 
By Edward Wong and Julian E. Barnes

Spy nest: The Chinese Embassy in Washington. The expulsions show the American government is now taking a harder line against espionage by China.

WASHINGTON — The American government secretly expelled two Chinese Embassy officials this fall after they drove on to a sensitive military base in Virginia, according to people with knowledge of the episode. 
The expulsions are the first of Chinese diplomats suspected of espionage in more than 30 years.American officials believe at least one of the Chinese officials was an intelligence officer operating under diplomatic cover, said six people with knowledge of the expulsions. 
The group, which included the officials’ wives, evaded military personnel pursuing them and stopped only after fire trucks blocked their path.
The episode in September, which neither Washington nor Beijing made public, has intensified concerns in the Trump administration that China is expanding its spying efforts in the United States.
American intelligence officials say China poses a greater espionage threat than any other country.In recent months, Chinese officials with diplomatic passports have become bolder about showing up unannounced at research or government facilities, American officials said, with the infiltration of the military base only the most remarkable instance.
The expulsions, apparently the first since the United States forced out two Chinese Embassy employees with diplomatic cover in 1987, show the American government is now taking a harder line against espionage by China, officials said.
On Oct. 16, weeks after the intrusion at the base, the State Department announced sharp restrictions on the activities of Chinese diplomats, requiring them to provide notice before meeting with local or state officials or visiting educational and research institutions.
At the time, a senior State Department official told reporters that the rule, which applied to all Chinese Missions in the United States and its territories, was a response to Chinese regulations imposed years ago requiring American diplomats to seek permission to travel outside their host cities or to visit certain institutions.
Two American officials said last week that those restrictions had been under consideration for a while because of growing calls in the American government for reciprocity, but episodes like the one at the base accelerated the rollout.
The base intrusion took place in late September on a sensitive installation near Norfolk, Va. 
The base includes Special Operations forces, said the people with knowledge of the incident. 
Several bases in the area have such units, including one with the headquarters of the Navy’s elite SEAL Team Six.
The Elizabeth River in Norfolk, Va. The military base intrusion took place in late September on an installation considered especially sensitive in the area.

The Chinese officials and their wives drove up to a checkpoint for entry to the base, said people briefed on the episode. 
A guard, realizing that they did not have permission to enter, told them to go through the gate, turn around and exit the base, which is common procedure in such situations.
But the Chinese officials instead continued on to the base, according to those familiar with the incident. 
After the fire trucks blocked them, the Chinese officials indicated that they had not understood the guard’s English instructions, and had simply gotten lost, according to people briefed on the matter.
American officials said they were skeptical that the intruders made an innocent error and dismissed the idea that their English was insufficient to understand the initial order to leave.
It is not clear what they were trying to do on the base, but some American officials said they believed it was to test the security at the installation, according to a person briefed on the matter. 
Had the Chinese officials made it onto the base without being stopped, the embassy could have dispatched a more senior intelligence officer to enter the base.
The Chinese Foreign Ministry and Chinese Embassy in Washington did not reply to requests for comment about the episode. 
Two associates of Chinese Embassy officials said they were told that the expelled officials were on a sightseeing tour when they accidentally drove onto the base.
The State Department, which is responsible for relations with the Chinese Embassy and its diplomats, and the F.B.I., which oversees counterintelligence in the United States, declined to comment.
Chinese Embassy officials complained to State Department officials about the expulsions and asked in a meeting whether the agency was retaliating for an official Chinese propaganda campaign in August against an American diplomat, Julie Eadeh
At the time, state-run news organizations accused Ms. Eadeh, a political counselor in Hong Kong, of being a “black hand” behind the territory’s pro-democracy protests, and personal details about her were posted online. 
A State Department spokeswoman called China a “thuggish regime.”
So far, China has not retaliated by expelling American diplomats or intelligence officers from the embassy in Beijing, perhaps a sign that Chinese officials understand their colleagues overstepped by trying to enter the base. 
One person who was briefed on reactions in the Chinese Embassy in Washington said he was told employees there were surprised that their colleagues had tried something so brazen.

The American Consulate in Hong Kong in September.

In 2016, Chinese officers in Chengdu abducted an American Consulate official they believed to be a C.I.A. officer, interrogated him and forced him to make a confession. 
Colleagues retrieved him the next day and evacuated him from the country. 
American officials threatened to expel suspected Chinese agents in the United States, but apparently did not do so.
China is detaining a Canadian diplomat on leave, Michael Kovrig, on espionage charges, though American officials say he is being held hostage because Canada arrested a prominent Chinese technology company executive at the request of American officials seeking her prosecution in a sanctions evasion case.
For decades, counterintelligence officials have tried to pinpoint embassy or consulate employees with diplomatic cover who are spies and assign officers to follow some of them. 
Now there is growing urgency to do that by both Washington and Beijing.
Evan S. Medeiros, a senior Asia director at the National Security Council under Barack Obama, said he was unaware of any expulsions of Chinese diplomats or spies with diplomatic cover during Obama’s time in office.
If it is rare for the Americans to expel Chinese spies or other embassy employees who have diplomatic cover, Medeiros said, “it’s probably because for much of the first 40 years, Chinese intelligence was not very aggressive.”
“But that changed about 10 years ago,” he added. 
“Chinese intelligence became more sophisticated and more aggressive, both in human and electronic forms.”
For instance, Chinese intelligence officers use LinkedIn to recruit current or former employees of foreign governments.
This year, a Chinese student was sentenced to a year in prison for photographing an American defense intelligence installation near Key West, Fla., in September 2018. 
The student, Zhao Qianli, walked to where the fence circling the base ended at the ocean, then stepped around the fence and onto the beach. 
From there, he walked onto the base and took photographs, including of an area with satellite dishes and antennae.
When he was arrested, Zhao spoke in broken English and, like the officials stopped on the Virginia base, claimed he was lost.
Chinese have been caught not just wandering on to government installations but also improperly entering university laboratories and even crossing farmland to pilfer specially bred seeds.
In 2016, a Chines, Mo Hailong, pleaded guilty to trying to steal corn seeds from American agribusiness firms and give them to a Chinese company. 
Before he was caught, Mo successfully stole seeds developed by the American companies and sent them back to China, according to court records. 
He was sentenced to three years in prison.
The F.B.I. and the National Institutes of Health are trying to root out Chinese scientists in the United States who are stealing biomedical research for China. 
The F.B.I. has also warned research institutions about risks posed by Chinese students and scholars.
Last month, Jerry Chun Shing Lee, a former C.I.A. officer, was sentenced to 19 years in prison, one of several former American intelligence officials sentenced this year for spying for Beijing.
His work with Chinese intelligence coincided with the demolition of the C.I.A.’s network of informants in China — one of the biggest counterintelligence coups against the United States in decades. 
From 2010 to 2012, Chinese officers killed at least a dozen informants and imprisoned others. 
One man and his pregnant wife were shot in 2011 in a ministry’s courtyard, and the execution was shown on closed-circuit television, according to a new book on Chinese espionage.
Many in the C.I.A. feared China had a mole in the agency, and some officers suspected Lee, though prosecutors did not tie him to the network’s collapse.
For three decades, China did have a mole in the C.I.A., Larry Wu-Tai Chin, considered among the most successful enemy agents to have penetrated the United States. 
He was arrested in 1985 and convicted the next year, then suffocated himself with a trash bag in his jail cell.

mercredi 28 août 2019

American Quisling: LinkedIn is helping China recruit spies overseas

  • Chinese spies is using LinkedIn to seek out potential new foreign recruits.
  • LinkedIn is ideal for espionage recruitment because it’s a platform where millions of Americans are looking for jobs.
By Yen Nee Lee


Social networking application LinkedIn.

Chinese spies have been using LinkedIn — the only major American social media platform not blocked in China — to seek out potential new foreign recruits, The New York Times reported on Tuesday.
LinkedIn is ideal for espionage recruitment because it’s a platform where millions of people are looking for jobs, the report said. 
Typical targets are academics and people outside China who have just left their government jobs, according to the Times, which interviewed former diplomats and intelligence experts.
One way Chinese agents use LinkedIn is by pretending to be corporate headhunters, the Times reported. 
Under that guise, they reach out to potential recruits and offer to pay for a trip to China for speaking or consulting opportunities, adding that relationships are developed from there.
A LinkedIn spokeswoman told CNBC the company declined to comment.
The Times is not the first media organization to report on Chinese agents using LinkedIn for espionage recruitment. 
Reuters last year reported U.S. intelligence and law enforcement officials warning about China’s “super aggressive” activities on the platform.

mardi 27 août 2019

China’s Spies Are on the Offensive

China is waging an intensifying espionage offensive against the United States. Does America have what it takes to stop them?
By MIKE GIGLIO 


Kevin Mallory
In early 2017, Kevin Mallory was struggling financially. 
After years of drawing a government salary as a member of the military and as a CIA and Defense Intelligence Agency officer, he was behind on his mortgage and $230,000 in debt
Though he had, like many veteran intelligence officials, ventured into the private sector, where the pay can be considerably better, things still weren’t going well; his consulting business was floundering.
Then, prosecutors said, he received a message on LinkedIn, where he had more than 500 connections
It had come from a Chinese recruiter with whom Mallory had five mutual connections. 
The recruiter, according to the message, worked for a think tank in China, where Mallory, who spoke fluent Mandarin, had been based for part of his career. 
The think tank, the recruiter said, was interested in Mallory’s foreign-policy expertise. 
The LinkedIn message led to a phone call with a man who called himself Michael Yang
According to the FBI, the initial conversations that would lead Mallory down a path of betrayal were conducted in the bland language of professional courtesy. 
That February, according to a search warrant, Yang sent Mallory an email requesting “another short phone call with you to address several points.” 
Mallory replied, “So I can be prepared, will we be speaking via Skype or will you be calling my mobile device?”
Soon after, Mallory was on a plane to meet Yang in Shanghai. 
He would later tell the FBI he suspected that Yang was not a think-tank employee, but a Chinese intelligence officer, which apparently was okay by him. 
Mallory’s trip to China began an espionage relationship that saw him receive $25,000 over two months in exchange for handing over government secrets, the criminal complaint shows. 
The FBI eventually caught him with a digital memory card containing eight secret and top-secret documents that had details of a still-classified spying operation, according to NBC, which followed the case along with other major outlets. 
Mallory also had a special phone he’d received from Yang to send encrypted communications. 
Gone was the polite, careful language from their initial conversations. 
“Your object is to gain information,” Mallory told Yang in one of the texts on the device
“And my object is to be paid.” Mallory was charged under the Espionage Act with selling U.S. secrets to China and convicted by a jury last spring. 
Mallory’s attorneys alleged that he’d been trying to uncover Chinese spies, but a judge dismissed the idea that he was working as a double agent, a defense that other accused spies have tried to deploy. He was sentenced to 20 years in prison in May; his lawyers plan to appeal the conviction.
If Mallory’s story was unique, he’d just be a tragic example of a former intelligence officer gone astray. 
But in the past year, two other former U.S. intelligence officers pleaded guilty to espionage-related charges involving China. 
They are an alarming sign for the U.S. intelligence community, which sees China in the same tier as Russia as America’s top espionage threat.

Ron Hansen
Ron Hansen, 59, is a former DIA officer fluent in both Mandarin and Russian, who had already received thousands of dollars from Chinese intelligence agents over several years by the time the FBI caught him last year, court documents show
Hansen gave the Chinese sensitive intelligence information and, the FBI alleged in its criminal complaint, export-controlled encryption software. 
He told the FBI that in early 2015, Chinese intelligence officers offered him $300,000 a year “in exchange for providing ‘consulting services,’” according to the complaint. 
He was caught when he began asking a DIA case officer to pass him information. 
Among his requests were classified documents about national defense and “United States military readiness in a particular region,” according to the Justice Department.

Jerry Chung Shing Lee
The case of Jerry Chung Shing Lee, 54, a former CIA officer, is perhaps the most enigmatic. 
After leaving the CIA in 2007, Lee moved to Hong Kong and started a private business, but it never really took off, according to the indictment
In 2010, Chinese intelligence operatives approached him, offering money for information. 
According to the Justice Department, he conspired to pass his handlers sensitive intelligence, and had created a document including “certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation.” Lee also possessed an address book that “contained handwritten notes related to his work as a CIA case officer prior to 2004. These notes included intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.” 
The ramifications of Lee’s leaks are still unknown. 
While NBC reported last year that U.S. authorities suspect that the information Lee passed to his handlers helped lead to the death or imprisonment of some 20 U.S. agents, a subsequent Yahoo News report blamed the compromise on a massive communications breach initiated by Iran.
Espionage and counterespionage have been essential tools of statecraft for centuries, of course, and U.S. and Chinese intelligence agencies have been battling one another for decades. 
But what these recent cases suggest is that the intelligence war is escalating—that China has increased both the scope and the sophistication of its efforts to steal secrets from the U.S. 
“The fact that we have caught three at the same time is telling of how focused China is on the U.S.,” John Demers, the head of the National Security Division at the Justice Department, which brought the charges against Mallory, Hansen, and Lee, told me. 
“If you think about what it takes to co-opt three people, you start to appreciate the actual extent of their efforts. There may be people we haven’t caught, and then you have to acknowledge that probably a small percentage of the people who’ve been approached ever go as far as these three did.”
Many espionage cases don’t go public. 
“Some of the cases rarely see the light of a courtroom, because there’s classified material we’re not willing to risk,” one U.S. intelligence official told me, speaking on condition of anonymity due to the sensitivity of the topic. 
“Sometimes they’re not charged at all and are handled through other means. And there are others that remain ongoing that have not and will not become public.”
These recent cases provide just a small glimpse of the growing intelligence war that is playing out in the shadows of the U.S.-China struggle for global dominance, and of the aggressiveness and skillfulness with which China is waging it. 
As China advances economically and technologically, its spy services are keeping pace: Their intelligence officers are more sophisticated, the tools at their disposal are more powerful, and they are engaged in what appears to be an intensifying array of espionage operations that have their American counterparts on the defensive. 
China’s efforts aimed at former U.S. intelligence officers are just one part of a Chinese campaign that U.S. officials say also includes cyberattacks against U.S. government databases and companies, stealing trade secrets from the private sector, using venture-capital investment to acquire sensitive technology, and targeting universities and research institutions.
By their nature, espionage wars are conducted in the shadows and hard to see clearly. 
But in recent weeks I spoke with several current and former U.S. officials, including America’s counterintelligence chief, who have been on the front lines of the one being waged between the U.S. and China, to get a sense of how it is being fought, of China’s intelligence operations—the methods, the targets, the goals—and of what the U.S. needs to do to combat it.
China has been seeking to turn American spies for decades. 
But the rules of the game have changed. 
About 10 years ago, Charity Wright was a young U.S. military linguist training at the elite Defense Language Institute Foreign Language Center at a base called the Presidio in Monterey, California. Like many of her peers, Wright relied on taxis to visit the city. 
There were usually a few waiting outside the base’s gate. 
She’d been assigned to the institute’s Mandarin program, so she felt lucky to frequently find herself in the cab of an old man who told her he’d emigrated from China years ago. 
He was inquisitive in a way she found charming at first, letting her practice her new language skills as he asked about her background and family. 
After several months, though, she grew suspicious. 
The old man seemed to have an unusually good memory, and his questions were becoming more specific: Where is it that your father works? 
What will you be doing for the military once you graduate?
Wright had been briefed on the possibility of foreign intelligence operatives collecting information on the institute’s trainees, building profiles for potential recruitment, given that many of them would move on to careers in intelligence. 
She reported the man to an officer at the base. 
Not long after, she heard that he’d been arrested and that there had been a crackdown in Monterey on a Chinese spy ring.
Wright went on to spend five years as a cryptologic language analyst with the National Security Agency, assessing communications intercepts from China. 
Now she works in private-sector cybersecurity. 
As a reservist, she still holds a U.S. government clearance that allows her access to classified secrets. And she’s still the target of what she suspects are Chinese espionage efforts. 
Only these days, the agents don’t approach her in person. 
They get in touch the same way they reached Kevin Mallory: online. 
She gets messages through LinkedIn and other social-media sites proposing various opportunities in China: a contract with a consulting firm, a trip to speak at a conference for a generous stipend. 
The offers seem tempting, but this type of outreach comes straight from the Chinese-spy playbook. “I’ve heard that they can be very convincing, and by the time you fly over, they’ve got you in their lair,” Wright told me.
The tactics she saw from the old man in Monterey were “cut and dry HUMINT,” or human intelligence, she said. 
They were old school. 
But those tactics have been amplified by the tools of the social-media age, which allow intelligence officers to reach out to their targets en masse from China, where there’s no risk of getting caught. 
Meanwhile, Chinese intelligence officers have only been getting better at the traditional skills involved in persuading a target to turn on his or her country.
Donald Trump has made getting tough on China a central aspect of his foreign policy. 
He has focused on a trade war and tariffs aimed at rectifying what he portrays as an unfair economic playing field—earlier this month, the U.S. designated China as a currency manipulator—while holding naively onto the idea that China’s powerful dictator, Xi Jinping, can be an ally and a friend. 
U.S. political and business leaders for decades pushed the idea that embracing trade with China would help to normalize its behavior, but Beijing’s aggressive espionage efforts have fueled an emerging bipartisan consensus in Washington that the hope was misplaced. 
Since 2017, the DOJ has brought at least a dozen cases against alleged agents and spies for conducting cyber- and economic espionage on behalf of China. 
“The hope was, as they develop, as they become more wealthy, as they start being a part of the club of developed nations, they’re going to change their behavior—once they get closer to the top, they’re going to operate by our rules,” John Demers told me. 
“What we’ve seen instead is [China] becoming better resourced and more methodical about the theft of information.”
For the past 20 years, America’s intelligence community’s top priority has been counterterrorism. 
A generation of operations officers and analysts has been geared more toward finding and killing America’s enemies and preventing extremist attacks than toward the more patient and strategic work that comes with peer competition and counterintelligence. 
If America is indeed entering an era of “great power” conflict with China, then the crux of the struggle will likely take place not on a battlefield, but in the race for information, at least for now. And here China is using an age-old human frailty to gain advantage in the competition with its more powerful adversary: greed. 
U.S. officials have been warning companies and research institutions not just of the strings that might be attached to Chinese money, but of the danger of corrupted employees turned spies. 
They are also worried about current and former U.S. officials who have been entrusted with protecting the nation’s secrets.
When I told William Evanina, America’s top counterintelligence official, Wright’s story about the cab driver in Monterey, he replied: “Of course.”
Spy rings operating out of taxis are relatively unoriginal, he told me, and have long been an issue around U.S. military and intelligence installations. 
An FBI and CIA veteran who is now the director of the National Counterintelligence and Security Center, Evanina has a suspicious mind—and perhaps one of the country’s worst Uber ratings. 
He sees the risk of intelligence collection and hidden cameras in any hired car, he told me, and if a driver ever tries to make small talk, he immediately shuts it down.
Knowing someone’s background can help an intelligence agency build a profile for potential recruitment. 
The person might have medical bills piling up, a parent in debt, a sibling in jail, or an infidelity that exposes him or her to blackmail. 
What really worries Evanina is that so much of this information can now be obtained online, legally and illegally. 
People can ignore Uber drivers all they want, but a good hacker or even someone savvy at mining social media might be able to track down targets’ financial records, their political views, profiles of their family members, and their upcoming travel plans. 
“It makes it so damn easy,” he said.
Security breaches happen with alarming regularity. 
Capital One announced in July that a data breach had exposed about 100 million people in America. During one of my conversations with Wright, she mused that whatever information the old man in the taxi might have wanted to glean from her, all that and much more may have been revealed in the 2015 breach of the U.S. Office of Personnel Management
In that sophisticated attack, widely believed to have been carried out by state-sponsored Chinese hackers, an enormous batch of data was stolen, including detailed information the government collects as part of the process of approving security clearances. 
The stolen information contained “probing questions about an applicant’s personal finances, past substance abuse, and psychiatric care,” according to Wired, as well as “everything from lie detector results to notes about whether an applicant engages in risky sexual behavior.”
Russia, the U.S. adversary that is often included with China in discussions of “near peer” conflict, has a modus operandi when it comes to recruiting spies that is similar to America’s, Evanina said. 
While some of their intelligence efforts, such as election interference, are loud and aggressive and seemingly unconcerned with being discovered, Russians are careful and targeted when trying to turn a well-placed asset. 
Russia tends to have veteran intelligence operatives make contact in person and proceed with care and patience. 
“Their worst-case scenario is getting caught,” Evanina told me. 
“They take pride in their HUMINT operations. They’re very targeted. They take extra time to increase the percentage of success. Whereas the Chinese don’t care.” (This doesn’t mean that the Chinese can’t also be targeted and discreet when needed, he added.)
“What you have is an intelligence officer sitting in Beijing,” he said. 
“And he can send out 30,000 emails a day. And if he gets 300 replies, that’s a high-yield, low-risk intelligence operation.” 
Concerning those who have left government for the private sector—and who sometimes keep their clearance to continue doing sensitive government work—it can be hard to know where to draw the line. 
Evanina said China will sometimes wait years to target former officials: “Your Spidey sense goes down.” 
But “your memory is not erased”—that is, they’ve still got the information the Chinese want. (Alicia Tatone)
Often, Chinese spies don’t even have to look too hard. 
Many of those who have left U.S. intelligence jobs reveal on their LinkedIn profiles which agencies they worked for and the countries and topics on which they focused. 
If they still have a government clearance, they might advertise that too. 
Buried in the questionnaire Evanina filled out for his Senate confirmation is a question asking whether he had any plans for a career after government. 
“I currently have no plans subsequent to completing government service,” he wrote. 
When I asked him about this, he admitted that this is becoming less common among intelligence officials his age. (He’s 52.) 
“All of my friends are leaving like crazy now because they have kids in college,” he said. 
“The money is [better]. It’s hard to say no.”
If a former intelligence officer lands a job at a prominent government contractor, such as Booz Allen Hamilton or DynCorp International, he or she can expect to be well compensated. 
But others find themselves in less lucrative posts, or try to strike out on their own. 
Evanina told me that Chinese intelligence operatives pose online as Chinese professors, think-tank experts, or executives. 
They usually propose a trip to China as a business opportunity. 
“Especially the ones who have retired from the CIA, DIA, and are now contractors—they have to make the bucks,” Evanina said. 
“And a lot of times that’s in China. And they get compromised.”
Once a target is in China, Chinese operatives might try to get the person to start passing over sensitive information in degrees. 
The first request could be for information that doesn’t seem like a big deal. 
But by then the trap is set. 
“When they get that [first] envelope, it’s being photographed. And then they can blackmail you. And then you’re being sucked in,” Evanina said. 
“One document becomes 10 documents becomes 15 documents. And then you have to rationalize that in your mind: I am not a spy, because they’re forcing me to do this.”
In the cases of Mallory, Hansen, and Lee, Evanina said, the lure wasn’t ideology. 
It was money. 
Money was also the lure in two similar cases, in which suspects were convicted of lesser charges than espionage. 
Both apparently began their relationship with Chinese intelligence officers while still employed in sensitive U.S. government jobs.

Kun Shan Chun
In 2016, Kun Shan Chun, a veteran FBI employee who had a top-secret security clearance, pleaded guilty to acting as an agent of China. 
Prosecutors said that while working for the agency in New York he sent his Chinese handler, “at minimum, information regarding the FBI’s personnel, structure, technological capabilities, general information regarding the FBI’s surveillance strategies, and certain categories of surveillance targets.” 

Candace Claiborne
And in April, Candace Claiborne, a former State Department employee, pleaded guilty to conspiracy to defraud the United States. 
According to the criminal complaint, Claiborne, who had served in a number of posts overseas including China, and held a top-secret security clearance, did not report her contacts with Chinese agents, who provided her and a co-conspirator with “tens of thousands of dollars in gifts and benefits,” including New Year’s gifts, international travel and vacations, fashion-school tuition, rent, and cash payments.
In exchange, Claiborne provided copies of State Department documents and analysis.
Evanina’s office in Bethesda, Maryland, features a so-called Wall of Shame, on which hang the photographs of dozens of convicted American traitors—a testament to the struggles that have always plagued the U.S. intelligence community. 
The Cold War, for example, was marked by disastrous leaks from people such as the CIA officer Aldrich Ames and the FBI agent Robert Hanssen. 

Larry Chin
Larry Chin, a CIA translator, was arrested in 1985 on charges of selling classified information to China over the course of three decades. 
That came during the so-called Year of the Spy, as the FBI made a series of high-profile arrests of U.S. government officials spying for the Soviet Union, Israel, and even Ghana. 
The Wall of Shame is currently being renovated, and when it’s unveiled in the fall, it will feature several new faces.
Whenever a current or former U.S. intelligence officer has been turned, it takes years to assess the full repercussions. 
“We have to mitigate that damage for sometimes a decade,” Evanina said.
Two decades ago, Chinese intelligence officers were largely seen as relatively amateurish, even sloppy, a former U.S. intelligence official who spent years focusing on China told me. 
Usually, their English was poor. 
They were clumsy. 
They used predictable covers. 
Chinese military intelligence officers masquerading as civilians often failed to hide a military bearing and could come across as almost laughably uptight. 
Typically their main targets tended to be of Chinese descent. 
In recent years, however, Chinese intelligence officers have become more sophisticated—they can come across as suave, personable, even genteel. 
Their manners can be fluid. 
Their English is usually good. 
“Now this is the norm,” the former official said, speaking with me on condition of anonymity due to security concerns. 
“They really have learned quite a bit and grown up.”
Rodney Faraon, a former senior analyst at the CIA, told me that the Mallory and Hansen cases show just how far China’s espionage services have come. 
“They’ve broadened their tactics to go beyond relatively easy targets, from recruiting among the ethnically Chinese community to a much more diverse set of human assets,” he said. 
“In a sense, they’ve become more traditional.”
In his recently published book, To Catch a Spy: The Art of Counterintelligence, James Olson, a veteran of the CIA’s clandestine service and its former chief of counterintelligence, breaks down the basics of China’s espionage services and how they operate. 
The Ministry of State Security (MSS), its main service, focuses on overseas intelligence. 
The Ministry of Public Security focuses on domestic intelligence, but also has agents abroad. 
The People’s Liberation Army, which focuses on military intelligence, “has defined its role broadly and has competed with the MSS in a wide range of economic, political, and technological intelligence collection operations overseas, in addition to its more traditional military targeting.” 
Olson adds that “the PLA has been responsible for the bulk” of China’s cyberespionage, though the MSS may also be expanding in this realm. Both the MSS and PLA, meanwhile, “make regular use of diplomatic, commercial, journalistic, and student covers for their operations in the United States. They aggressively use Chinese travelers to the US, especially business representatives, academics, scientists, students, and tourists, to supplement their intelligence collection. US intelligence experts have been amazed at how voracious the Chinese have been in their collection activity.”
Olson notes that China has “always been adept at espionage,” but writes with a kind of awe at the extent of its efforts today. 
“If I were to start my CIA career all over again, I would try to get into our China program, learn Mandarin, and become a Chinese counterintelligence specialist … Our top priority in US counterintelligence today—and into the future—must be to stop or to drastically curtail China’s spying.”
If veteran American spies are vulnerable to Chinese espionage, U.S. companies may be faring even worse. 
In some cases, targeting the private sector and targeting U.S. national security can mix. 
A former U.S. security official, who now works for a prominent American aviation company that is involved in highly sensitive U.S. government projects, told me that the company had a suspected intelligence collector linked to China in its midst. 
“I would say that he’s had tradecraft training,” this person said, speaking anonymously due to an ongoing law-enforcement investigation.
The former security official was hired by the company to monitor such threats, and initially found the lack of effective prevention measures and training at the company jarring. 
“When I walked in and got the briefing here, I thought it was a joke ... Now we do take some measures to protect against [insider threats], but in a sense it’s fox in a henhouse,” this person said. “We as an industry are woefully inadequate at protecting ourselves from a foreign-intelligence threat.”
In a sense, going after American spies and government officials is fair game in the intelligence world. The U.S. does the same against the Chinese. 
“Intelligence operations are universal, with every country—other than a few isolated island-states who are concerned mainly with the danger of approaching cyclones—engaging in them, to one degree or another,” Loch K. Johnson, a professor emeritus at the University of Georgia, the author of Spy Watching: Intelligence Accountability in the United States, and one of America’s foremost intelligence scholars, told me in an email. 
He added that while almost every nation fields capabilities to both collect information about its adversaries and defend itself against espionage, a much smaller number have meaningful networks for covert action, which he described as “secret propaganda; political and economic manipulation; even paramilitary activities.” 
Both America and China count themselves among this group.
“The United States used propaganda, political, and economic ops during the Cold War and (somewhat less aggressively) since. China returns [the] favor,” Johnson said. 
“Both are major powers and have a full complement of intelligence capabilities, aimed at each other and other significant targets around the world. This means that the United States (like China in reverse) is constantly trying to learn what China is doing when it comes to military, economic, political, and cultural activities, since they may impinge upon U.S. interests in Asia and elsewhere.” To that end, the U.S. uses signals intelligence, geospatial intelligence, and HUMINT, Johnson said, “all aided by a diligent searching through the available (and voluminous) [open-source intelligence] materials for background.”
But he noted a key difference between the two countries: China’s aggressive approach to economic espionage. 
These Chinese efforts are partly what have prompted U.S. officials and politicians to turn to a newly popular refrain that China’s not playing by the rules. 
U.S. officials insist that American intelligence agencies do not target foreign companies with the aim of helping domestic ones. (The line between American spying on foreign companies to advance the country’s economic and strategic interests and whether that spying helps U.S. companies can be blurry.) 
“What we do not do, as we have said many times, is use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of—or give intelligence we collect to—U.S. companies to enhance their international competitiveness or increase their bottom line,” James Clapper, then the director of national intelligence, said in 2013, amid revelations that the NSA had spied on foreign companies.
Dennis Wilder, who retired as the CIA’s deputy assistant director for East Asia and the Pacific in 2016, told me that the Chinese approach to espionage is defined by the fact that its leaders have long seen America as an existential threat. 
“This is a constant theme in Chinese intelligence—that we’re not just out to steal secrets, we’re not just out to protect ourselves, that the real American goal is the end of Chinese Communism, just as that was the goal with the Soviet Union,” he said.
Wilder, who still travels to the country as the director of an initiative for U.S.-China dialogue at Georgetown University, told me that Chinese officials regularly bring up past American covert action such as the CIA’s ill-fated support for the independence movement in Tibet beginning in the 1950s, and its infiltration of agents into China via Taiwan. 
And they still see an American hand in events such as the protests in Hong Kong today. 
“So we’re all sitting here scratching our heads and saying, ‘Do they really believe we’re behind Hong Kong? And the answer is, yes they do. They really believe that the fundamental American goal is the destruction and demise of Chinese Communism,” he said. 
“Now, if you believe that the other guy is bent on your destruction, then it’s kind of anything goes. So for the Chinese, stealing, espionage, cyberespionage against American corporations for the good of the Chinese state, are just part and parcel of the need for survival against this very formidable enemy.”
The litany of cases the DOJ has brought over the past year or so underscores the comprehensive quality of China’s espionage efforts: a former General Electric engineer charged with theft of trade secrets related to gas and steam turbines (he has pleaded not guilty); an American and a Chinese citizen charged with attempting to steal trade secrets related to plastics (the American has pleaded not guilty and the Chinese defendant, as of March 2019, had yet to appear in a U.S. court); a state-owned Chinese chip-making company and a Taiwanese company that makes semiconductors charged with stealing from an American competitor (the chipmaker has pleaded not guilty); two Chinese hackers charged with targeting intellectual property (China denied the “slanderous” economic espionage charges). 
In Senate testimony in July, FBI Director Christopher Wray said that the agency has “probably about 1,000 plus investigations all across the country involving attempted theft of U.S. intellectual property … all leading back to China.”
Demers, the national-security official at the Justice Department, told me that China uses the same tactics and even some of the same intelligence officers in its espionage efforts against America’s private sector. 
“What it shows is how seriously the Chinese government takes their intellectual-property-theft efforts, because they’re really using the crown jewels of their intelligence community and their most sophisticated and well-honed tradecraft,” he said.
Some of the trade secrets China is accused of stealing seem simply aimed to help a specific company or industry. 
Often, however, the distinction between a Chinese company and the Chinese state is not clear-cut. Chinese law mandates that all corporations cooperate with the government on national security. 
This was one concern U.S. officials cited after announcing indictments against the Chinese telecommunications giant Huawei earlier this year; the Trump administration has banned U.S. companies from doing business with it. (Huawei has pleaded not guilty to attempted U.S. trade-theft allegations.)
Demers told me that China uses economic espionage as a form of “R&D,” or research and development. 
“They also have very talented, smart people who are using their resources in legitimate ways, which is, I think, some of the frustration that folks have right now—that you could do this differently. You could fight fair, right? You’re not the 80-pound weakling who has to throw dirt in somebody’s eye to get ahead.”
The open business climate between America and China—the sort of climate that did not exist between America and the Soviet Union during the Cold War—makes addressing Chinese espionage trickier: China is both a rival and a top trade partner. 
Rodney Faraon, who worked on the President’s Daily Briefing team at the CIA during the Bill Clinton and George W. Bush administrations and is now a partner at Crumpton Group, a business intelligence firm, told me that it will take a major push not just from America’s intelligence agencies but from the U.S. government overall to find the right strategy. 
And despite the Trump administration’s combative stance on trade negotiations and other issues, this has yet to happen. 
“The approach must be whole of government and must involve the private sector,” Faraon said. 
“The Chinese use and value intelligence better than we do, seeing its applicability in nearly every aspect of private and public life—military, social, commercial. We have been slow to recognize this for ourselves.”

lundi 12 août 2019

How a former CIA officer was caught betraying his country

The officials who investigated and convicted Kevin Mallory for conspiracy to commit espionage tell CBS how their case came together
By Anderson Cooper
Kevin Mallory in surveillance footage

Kevin Mallory --  former clandestine case officer for the CIA -- was a down on his luck when he was approached by a man the Department of Justice believes was a Chinese spy. 
Officials say Mallory was a prime target for recruitment. 
He was out of work, three months behind on his mortgage, and thousands of dollars in debt. 
But as we first reported in December and as the Chinese would discover, Kevin Mallory wasn't exactly James Bond. 
The Department of Justice agreed to show us how they caught Mallory and why they believe his recruitment by China is part of a massive clandestine campaign to steal not just national security secrets from the U.S. government, but industrial and technological secrets from American companies.
This is what espionage looks like. 
The man standing on the right in the yellow shirt is Kevin Mallory, who once held a top-secret security clearance while working for the CIA and the Defense Intelligence Agency. 
Footage from a surveillance camera at a Virginia FedEx store in April 2017 caught him as he prepared to hand a clerk stacks of classified documents to be scanned onto an SD card, the kind that can be inserted into a mobile phone.
Ryan Gaynor: So this is the rare moment, right, in an investigation, in an espionage case, where we actually have video footage of the individual preparing the classified material for transmission to the foreign intelligence service. 

We watched the tape with Ryan Gaynor, the FBI supervisory special agent who investigated Mallory, and Jennifer Gellie, who prosecuted the case against him for the National Security Division of the Department of Justice. 
They say Kevin Mallory sent national security secrets to a Chinese spy on a covert communication device.
Jennifer Gellie: So here you see him talking with the store clerk about the scanning job. And throughout this video you see little pops of yellow, little yellow pieces of paper that flash by when he's showing the documents. That was important for us because the document that he successfully passed consisted of a typed-up white piece of paper, that was the classified information followed by two yellow sheets of paper with his handwriting on them. And here you can see --
Anderson Cooper
: So that's the -- those are the yellow sheets of paper?
Jennifer Gellie
: You can see the yellow sheets of paper going through that scanning process.
Some of the information Mallory sent could have revealed the identity of a couple who had secretly spied on China for the U.S.. 
It was a very personal betrayal. 
Mallory had supervised the couple years before.
Anderson Cooper
: He was betraying people. This is people's lives at stake.
Jennifer Gellie
: Correct. These were documents that specifically talked about human beings. Whose lives could be in danger.
Anderson Cooper
: If they had traveled to China they could have been arrested.
John Demers
: At the time he gave the information to the Chinese intelligence officer, he knew they were planning on traveling to China. John Demers

John Demers is the top official in charge of the Department of Justice's National Security Division, which helps guard the U.S. against terrorism, cyberattacks, and espionage. 
He's responsible for coordinating activities across law enforcement and U.S. intelligence agencies. 
He says Kevin Mallory's recruitment is just one of many efforts by the Chinese Ministry of State Security, or MSS, to spy on the United States.

Anderson Cooper
: What is MSS?
John Demers
: So MSS is the principal intelligence agency of the Chinese government. And in rough terms it is like the CIA and the FBI put together.
Their capabilities are world-class. They have cyber capabilities, they have expertise in turning people into cooperators. And they have all of the tools and expertise of a very capable intelligence organization.
Kevin Mallory hadn't worked for any U.S. intelligence agency in five years, but he was still of interest to China. 
He spoke Mandarin, was desperate for money, and had classified information he was willing to sell.
John Demers
: You're looking for people who will be willing to work with you for one reason or another. You start very slowly. you start to see what information they are willing to share with you originally, innocuous information. Then something maybe slightly more sensitive and so forth. And that relationship develops over time. It's a patient process.
Anderson Cooper
: It's a grooming of an intelligence asset.
John Demers
: It's a grooming and it's a constant testing to see what the person is willing to do.
The Chinese didn't reach out to Kevin Mallory in a dark alley like in a movie, they made contact with him like any job recruiter would, they sent him a message on the career networking site, LinkedIn.
Anderson Cooper
: What could the Chinese tell from reading his LinkedIn page?
Ryan Gaynor
: When you look at this LinkedIn page, it's very clear immediately that he worked in national security, that he had the type of background that the Chinese intelligence services are most interested in.
Anderson Cooper
: He's good at national security, military, international relations, counterterrorism, security clearance, dispute resolution. This is a signpost to "I was a former intelligence official."
Ryan Gaynor
: And it led to what you would expect.
Mallory ended up in contact with this man, who called himself Michael Yang, and claimed to be an employee at a Chinese think tank.
Anderson Cooper
: So he's a Chinese intelligence officer?
Ryan Gaynor
: We believe him to be a Chinese intelligence officer and more importantly, Mallory when meeting with him believed him to be an intelligence officer.
Ryan Gaynor, the FBI supervisory special agent who investigated Mallory, and Jennifer Gellie, who prosecuted the case against him for the National Security Division of the Department of Justice.

Over the next several weeks, Michael Yang paid Mallory $25,000 to come to Shanghai twice and Mallory reached out to former colleagues at the CIA asking to be put in touch with people who had current intelligence on China. 
Prosecutors say his former colleagues grew suspicious and reported him to CIA security, putting him on the radar of law enforcement.
When Mallory returned from his second trip to China, he was stopped by customs at Chicago's O'Hare Airport. 
He had lied on this form about how much money he was carrying, more than $16,000 in cash, and agents discovered this box with a phone in it. 
Mallory claimed it was a gift for his wife but it was actually a covert communication device that had been given to him by Chinese Intelligence.

Anderson Cooper
: This looks just like a regular phone. What makes it a covert communication device?
Ryan Gaynor
: So it's not so much the hardware. The phone itself had a unique piece of software installed on it designed to allow secure communication both in text and also the secure transmission of documents later.
You might think a former CIA officer would be cautious about the texts he sends to a Chinese spy, but Kevin Mallory was remarkably direct, complaining about the money he was paid and the risk he was taking.
"Your object is to gain information," he told Michael Yang, "and my object is to be paid for."
"I will destroy all electronic records after you confirm receipt," Mallory wrote to Yang. 
 "I already destroyed the paper records. I cannot keep these around, too dangerous."
"At this point all the risk is on me."
Jennifer Gellie
: So he says, "I'm taking all the risk." But then he goes on a few bubbles later to actually try to transmit additional information to the Chinese.
But technology wasn't Mallory's strong suit. 
 He complained to Michael Yang that the phone wasn't working properly.
"This system sucks. It's too cumbersome," he wrote. 
"I put all these messages and then and you can't read them because you are not logged in the same time, that's a poor system."

At this point, prosecutors say, Mallory was scared. 
He'd been stopped at customs and he feared the CIA and FBI were onto him. 
Prosecutors say he decided to come up with a cover story and reached out to the CIA telling them he thought he was being recruited by Chinese spies. 
The CIA called him in for an interview.Mallory is questioned.

Mallory in CIA interview clip: My judgement is, and we haven't gone through this conversation, that these guys work for Chinese intelligence… so my sense is that they were looking for government secrets. U.S. government secrets at some level.

In this meeting, Mallory admitted the phone was a covert communication device given to him by the Chinese, but prosecutors say he lied about the classified documents he'd already sent.
Interviewer in CIA interview clip
: Did you send them anything on that phone?
Mallory in CIA interview clip
: I sent them some tests of some sort, just to see if I could do it right. And I couldn't figure it out. I messed that up.
Ryan Gaynor
: He's trying to control the narrative so what you have here likely is an attempt to steer the story, to explain away some of the more alerting pieces while not admitting to the criminal activity of providing the classified information to the foreign intelligence service.
Jennifer Gellie
: We now know at this point in time Kevin Mallory has successfully sent the classified table of contents, the classified white paper, and tried to send several other documents unsuccessfully.
"We currently have three pending cases against former intelligence officers and they're alleged to have been spying on behalf of the Chinese."

Mallory offered to bring in the phone to be examined by the CIA, confident that all his messages to Michael Yang had automatically been deleted.
Anderson Cooper
: So he believes, everything he's sent has disappeared from the device. So that's why he's willing to bring the device in?
Ryan Gaynor
: We have every reason to believe that he believed at the time that those communications would be gone.

Two weeks later, Mallory arrived at a hotel room in Ashburn, Virginia for a second meeting with the CIA. 
When he got there, the FBI was waiting for him, along with a computer forensic examiner. 
He agreed to show them how the phone worked.
Ryan Gaynor
: When he goes to demonstrate it, up on the screen where he expects to have his whole chat history basically deleted, up on the screen, comes some of the chat history.
The FBI recorded the meeting.
FBI AUDIO CLIP :
Mallory
: I'm, I'm surprised it kept this much.
FBI: So, you made a comment that you were surprised that there was this much there.
Mallory: Right, 'cause you-- 'cause this, right-- 'cause, uh, in the past, uh, maybe it was the s-screen size or something 'cause some of it just disappeared.

One of the most incriminating messages that appeared on the phone was Mallory planning another trip to China. 
"I can also come in the middle of June," he wrote. 
"I can bring the remainder of the documents I have at that time."
Ryan Gaynor
: From the FBI perspective, this is a pivotal moment in the investigation. 

Four weeks later, the FBI arrested Kevin Mallory and searched his home. 
Hidden in the back of this closet in a junk drawer, agents discovered an SD card wrapped in tinfoil, on which he had placed eight secret and top-secret documents, the same ones he scanned at that FedEx store in April.
Ryan Gaynor
: It is our belief that it was his intention to take this SD card to China to provide to them.
Anderson Cooper
: Does the Mallory case fit a pattern that you're seeing coming from Chinese intelligence?
John Demers
: Yes. We currently have three pending cases against former intelligence officers and they're alleged to have been spying on behalf of the Chinese.
Anderson Cooper
: It's hard to overstate how unusual it is to have three cases like this ongoing.
John Demers: It's not unusual. Its unprecedented.
Bill Evanina: To me it's disappointing and its really hurtful, I think, to everyone to know that we still have people who are willing to betray the U.S. for a few dollars.
Bill Evanina.

Bill Evanina is director of the National Counterintelligence and Security Center, a division of the Office of the Director of National Intelligence. 
He serves as the U.S. government's top counterintelligence official.
Anderson Cooper
: When it comes to espionage against the United States, does China pose the greatest threat or Russia?
Bill Evanina
: When it comes to espionage, China poses the greatest threat. And it's not even close compared to Russia or Iran or any other country. And if you include economic espionage, industrial espionage, it's not even in the same ballgame.
Anderson Cooper
: When most people think of espionage, they think of somebody in a trench coat trying to steal a state secret. What's happening now with China, it's not just about state secrets, it's about technological secrets that's the prize that China wants.
Bill Evanina
: That's correct. It's trade secrets, proprietary data, intelligence, emerging technology, nanotechnology, hybrid, anything that they can see that is the future. Supercomputing, encryption, those are the issues that they look at. And they have a prioritized schedule that they look at and they send people forward to go collect that data.

John Demers, of the Justice Department's National Security Division, says since 2011, more than 90 percent of the economic espionage cases they have charged have involved China, which has stolen secrets about everything from genetically modified rice seeds to wind-turbine technology.
Anderson Cooper
: This is a persistent campaign you're seeing?
John Demers
: Yes, very persistent, very sophisticated. Very well-resourced, very patient and very broad in scope.
Demers says Chinese operatives have intensified their efforts on industries critical to Chinese dictator Xi Jinping's "Made in China 2025" program, a 10-year plan to jump ahead of the United States in aerospace, automation, artificial intelligence, quantum computing and other cutting edge industries.
Anderson Cooper
: I think some people who see this are going to think, well this is the something the U.S. must do as well.
John Demers
: The U.S. intelligence community doesn't take trade secrets from foreign companies for the benefit of American companies.
Anderson Cooper
: That doesn't happen?
John Demers
: This is not something that we do.
As for former CIA officer Kevin Mallory, he continues to deny sending any classified information to the Chinese. 
Last June, a jury in Virginia found him guilty of conspiracy under the Espionage Act and lying to the FBI. 
In May, Mallory was sentenced to 20 years in prison.

jeudi 4 avril 2019

Chinese Moles Dig Deep Into Europe’s Political Landscape

China has an array of agents of all political persuasions across Europe
By Peter Martin and Alan Crawford
Emmanuel Macron and Xi Jinping during a news conference in Paris, on March 25. 

In November, a British Conservative Member of the European Parliament called Nirj Deva traveled to Beijing for an event on innovation. 
It was a routine trip for Deva, a regular visitor as chairman of the EU-China Friendship Group. 
And as usual, his economy class air fare was upgraded to business by his Chinese government hosts, who also picked up his hotel bills and expenses.
Once there, Deva and his group, who have no formal role representing the European Union, were given better access than the EU’s official delegation for relations with China. 
Among those he met: Li Zhanshu, the head of the National People’s Congress and the No. 3 ranked official in China; Song Tao, head of the Communist Party’s international department; and Cai Qi, the party boss in Beijing who is on the 25-member Politburo.

Chinese mole Nirj Deva in the European Parliament.

“I am quite intimately involved with China,” Deva said in an interview at his parliamentary office in Strasbourg, France. 
He confirmed the arrangements for his visits, which are recorded in the European Parliament’s register of interests and are legitimate under the code of conduct for lawmakers. 
Deva said that growing wariness of China’s motives is misplaced and in his experience is partly due to “ignorance.” 
Over 15 years of closely watching China, “I can’t think of one big mistake they have made,” he said.
At a time when the world is growing more skeptical of China’s economic attentions, Deva is one of an increasing number of European officials courted by Beijing as it seeks to push its political agenda. Bloomberg spoke with more than two dozen diplomats, government officials, lawmakers and business leaders in China and in Europe to shine a light on Beijing’s links with sympathetic politicians and political parties across the European Union.
What emerges is an extensive network of contacts of all political persuasions, all of whom are either predisposed to China or are open to Chinese arguments. 
The result is a band of Chinese agents throughout Europe whose positions range from urging closer economic and governmental cooperation with Beijing to air-brushing over China’s human rights record.
Discussions with officials also showed:
  • China’s penetration of Europe’s political landscape knows no geographical boundaries. It includes European heavyweights Germany and France, eastern states Romania and Hungary, as well as smaller strategic countries Belgium, Portugal, Greece and Austria.
  • China isn’t fussy about political orientation. Beijing has traditionally had links with mainstream parties and former communists in Europe; now it’s building ties to right-wing populists such as the Alternative for Germany (AfD), anti-immigrant nationalists like Austria’s Freedom Party and Italy’s anti-establishment Five Star Movement.
  • China has stepped up its outreach in recent months, coinciding with the campaign for EU-wide elections to the European Parliament in May.
Beijing’s efforts to reach out beyond the European mainstream are paying off as populism gains traction on the continent. 
Italy is the first Group of Seven country to join Xi Jinping’s Belt and Road Initiative, and Hungary under Viktor Orban blocked the EU from signing a letter two years ago condemning the torture of Chinese human rights lawyers.
Yet more broadly, Europe is adopting an increasingly critical stance toward China more in line with the U.S., Australia and Canada. 
Beijing wants to avoid Europe joining with the U.S. and others in an anti-China front, several officials said.

Xi Jinping, left, and Giuseppe Conte, pose for photographs ahead of the signing of the memorandum of understanding on China's Belt and Road Initiative in Rome, on March 23.

Countries including Russia have long tried to influence European politics; so-called friendship groups exist between other countries and members of the European Parliament, and are recognized as lobbying vehicles by the Association of Accredited Public Policy Advocates to the European Union. Indeed, Parliament has recently moved to tighten up their regulation. 
However, China’s efforts are on the radar after Xi’s visit to Italy and France last month failed to alleviate European concerns over undue Chinese influence.
“One country isn’t able to condemn Chinese human rights policy because Chinese investors are involved in one of their ports,” European Commission President Jean-Claude Juncker said on Monday, adding: “It can’t work like this.”
Europe faces a dilemma, with unease spreading as it becomes increasingly reliant on China economically. 
Europe’s relative openness makes it a more attractive target than the U.S. for Chinese investment, with some 45 percent more deals over the decade to end-2017. 
China is already the most important trading partner for Germany, the region’s biggest economy, with a 6.1 percent growth in total trade volume in 2018, the BGA exporters group said in its annual outlook last week.
For China, its European push is also something of an insurance policy. 
China was blindsided by President Donald Trump’s election victory in 2016, and his administration’s assault on strategies such as the Made in China 2025 plan to become the foremost world power in 10 key industries. 
It wants to make sure the same doesn’t happen in Europe.
China has taken an unusual degree of interest in the EU elections, and especially what populist candidates might mean for the bloc’s China policies. 
The Ministry of Foreign Affairs in Beijing didn’t respond to a fax requesting comment.
“We cannot let mutual suspicion get the better of us,” Xi said in Paris after visiting Rome, where Italy’s government signed the Belt and Road memorandum.
That could be read as a dig at Europe’s emerging China strategy, which will feature at an EU-China summit in Brussels on April 9. 
Europe’s toolkit includes anti-dumping instruments, tighter investment screening, and efforts to bolster cybersecurity defenses and protect 5G networks from security risks such as those attached to Huawei Technologies Co.
Deva dismissed security concerns over Huawei as “such nonsense” and praised Italy’s embrace of Belt and Road, expressing hope the EU will do likewise. 
For him, China isn’t trying to influence European politicians, but rather to learn why it is the subject of criticism.
“I think they are first trying to understand why they get attacked,” he said. 
“So they need a group of interlocutors who they can trust to give them an answer and say why is this happening.”
The EU Parliament’s official delegation for relations with China is more skeptical of Beijing’s motives. 
China under Xi shows a “total control phobia” that’s forcing the EU to “wake up” and protect itself, said Jo Leinen, a German Social Democrat lawmaker who chairs the delegation.
“From a friendly partner, in a few years it changed to an unfriendly competitor,” Leinen said of China. 
He cited industrial policy as well as human rights violations including the detention of Muslim minority Uighurs for the “rougher tone” from the EU. 
“China has lost the battle in the U.S. and is on the way to losing the battle in Europe,” he said.
Against that backdrop, China is stepping up its political engagement with a different set of tools. Invitations to politicians to visit China are issued by government-run “friendship organizations” like the Chinese People’s Association for Friendship with Foreign Countries, as well as Communist Party bodies such as the International Liaison Department and the United Front Work Department
The invites form part of a “united front” strategy to win support for China’s agenda through alternatives to official diplomatic channels. 
Xi described united front work as a “magic weapon” in a 2014 speech.
China doesn’t care about the ideological hue of its interlocutors. 
Robby Schlund, an AfD lawmaker who is deputy chair of the German-Chinese group in the Bundestag, met with Chinese People’s Association Vice President Xie Yuan in July. 
According to the Chinese group’s website, Schlund -- a former East German army officer who praised Vladimir Putin in an interview with Kremlin-backed Sputnik news last year -- pledged to deepen “exchanges and cooperation in the fields of parliaments, local governments and friendship cities.”
Austrian Transport Minister Norbert Hofer, who unsuccessfully contested the presidency for the Freedom Party, is leading his coalition government’s push for closer ties with China, saying “it’s not a question of whether China becomes the world’s biggest economic power, but when.” 
Brecht Vermeulen, a lawmaker with the Flemish nationalist NVA party who chairs Belgium’s home affairs committee, was pictured at a Chinese embassy reception in July 2017 marking the anniversary of the Chinese People’s Army. 
Vermeulen told Belga news agency he was invited “as a member of the Belgium-China inter-parliamentary friendship group.”
For China, “it’s about gaining influence,” with the Communist Party doing what it can to get close to politicians “from the far left to the far right,” said Reinhard Buetikofer, a senior Green party member of the European Parliament who also sits on the delegation for relations with China. 
The aim is to get international access “and not just rely exclusively on their foreign ministry,” he said. “That’s why they’re trying to strike up these relationships.”
Beijing’s influence tool kit also includes propaganda and flexing its cultural muscles, from an array of Confucius Institutes whose teaching materials are supplied by Beijing to paid-for inserts in European newspapers.
The risk of cyber attacks and espionage is becoming more apparent too. 
Germany’s domestic intelligence agency has warned of Chinese attempts to infiltrate political and business circles through LinkedIn. 
One of the European diplomats interviewed for this piece insisted on meeting in a park for fear that coffee shops near their place of work were bugged.
The paradox is that China’s approach is contributing to the distrust. 
The idea that the EU and China might get closer as a result of Trump was always exaggerated, yet there was a real window of opportunity which China has failed to grasp, one official said. 
Several said Europe’s traditional focus has been on Russian infiltration; now it’s shifting to include China.
A line has been crossed that is unlikely to lead to the EU softening its stance on China, according to Leinen. 
“If they don’t change in Beijing, it could even get tougher,” he said.

mercredi 16 janvier 2019

Portrait of an Ordinary Bastard

Kevin Mallory: The churchgoing CIA officer who spied for China
By Tara McKelveyLeesburg, Virginia

US officials say China is trying to influence US policymakers, steal secrets and spy on the US government. 
But how? 
The story of Kevin Mallory, a man who seemed to lead a typical suburban life in Virginia, provides the answer.
FBI agents pointed their weapons at Jeremiah Mallory, a teenager standing in the doorway of his house one morning in June 2017, and told him to get on his knees.
"They've got guns in his face," says Patsy Clark, a family friend. 
They were looking for evidence against his father, Kevin Mallory, a former Central Intelligence Agency (CIA) officer who had been spying for the Chinese government.
One of Mallory's neighbours, a dog walker, was heading down the block: "All of a sudden I hear this yelling."
The roar of helicopters woke another neighbour, Delrose Winter, who says she saw police cars and black vans at the house. 
Cameron Norris, a student who lived nearby, saw dogs searching the yard and FBI agents carrying boxes: "They were taking equipment out - a computer."
FBI agents searched Mallory's house, a place with a red banner covered in Chinese calligraphy that hung alongside the front door, his yard and, according to neighbours, a bridle path where he used to go on runs. 
His street in Raspberry Falls, a Leesburg subdivision, looked like a war zone, with helicopters circling in the air and armed men charging through the grass.
At home, Mallory secretly communicated with Chinese agents
One year later Mallory, 61, was found guilty of espionage.
In a real-life episode of The Americans, a TV spy drama that takes place in northern Virginia, Mallory had lived a double life: he helped people on his street with yard work, went to church and assisted immigrants with income-tax forms. 
Yet at home he communicated with Chinese agents through social media and sold them US secrets.
Today he faces life in prison -- he will be sentenced later this month. 
His punishment may serve as a warning to others who may be contemplating espionage, say US justice department officials. 
It also highlights the tense nature of the US-China relationship.
A new Cold War
The US has entered a new "cold war", said the CIA's Mike Collins, deputy assistant director at the agency's East Asia mission centre, at the Aspen Security Forum last year.
Chinese officials are investing billions of US dollars in global influence operations and espionage, according to research by a former CIA analyst, Peter Mattis.
The Chinese officials are attempting to gain inside information about the White House and the government, according to US officials, and shape the way that Beijing policies and its commercial and military activities are perceived on the world stage.Loudoun County's Kristen Umstattd says she's concerned about Chinese broadcasting in Virginia
Chinese officials are attempting to sway the views of politicians and ordinary Americans so they will support policies that are favourable to Beijing on issues ranging from the South China Sea to currency manipulation.
Last month US Assistant Attorney General John Demers testified before Congress about China's "covert efforts to influence the American public".
US Secretary of State Mike Pompeo, who previously served as CIA director, told the BBC's Gordon Corera last year that the Chinese government is trying to "infiltrate the United States with spies".

Then-CIA Director: China intent on stealing US secrets

In Beijing, state officials view the US with suspicion, and espionage is punished severely.
Between 2011-12, 10 individuals who were working undercover in China for the CIA were killed, according to the New York Times
"One was shot in front of his colleagues in the courtyard of a government building -- a message to others," the New York Times reporters claimed.Where Mallory went jogging
Meanwhile Xi Jinping has made it clear that influence operations in other countries are a priority for his government. 
He has done this by expanding the efforts of the United Front Work Department, according to Xinhua, the state-run news agency.
The United Front was created in the 1930s in order to marshal forces behind the Communist Party by providing a "united front" for the party among those who are living abroad.
This means that today when Chinese students in the US publicly contradict party positions, Beijing officials may inform their family in China that they have spoken out in a "subversive" manner, according to a report, Chinese Influence and American Interests.
Chinese American students say they're singled out for scrutiny by the Beijing officials and also by US officials who suspect them of being spies.
As many as one in five Chinese Americans who were accused of espionage since 2009 were never convicted, according to Andrew Kim, the author of a May 2017 report about espionage.
Party officials take to the air waves
Leesburg, a town in Loudoun County, provides a textbook example of the Communist Party's mode of operations. 
Located 40 miles from Washington, Leesburg has old-fashioned streetlamps, brick sidewalks and picket fences, evoking authentic Americana, and seems far from global conflict.
Yet Chinese agents lured Mallory, working out of his Leesburg home, into their spy ring. 
Separately Chinese officials obtained access to the airwaves of a local radio station.
The Chinese officials bought access to a Leesburg station, WCRW 1190 AM, through a subsidiary company. 
The 50,000-watt station used to be housed in a low-slung building with plate-glass windows, but the place was sold to a family several years ago.
WCRW towers in Ashburn, shown above, broadcast programmes to Washington
Under a new style of management, WCRW transmitters were moved to Ashburn, a town closer to Washington. 
The radio towers are posted on property owned by a company, Loudoun Water, near an installation of China's Zigong Lantern Festival, a traveling exhibit that was open in December. 
"They wanted a stronger signal," says Kristen Umstattd, a local official, referring to the station owners.
A former CIA analyst who has studied in Taiwan, she says that last year the station owners received permission to expand their programming hours. 
A station engineer says they now broadcast 24 hours a day. 
"I hope somebody above my pay grade is paying attention," Umstattd says.
WCRW, once located in this building, is now known as China Radio Washington
The radio signal is powerful. 
On a recent Sunday, listeners in Washington learned about Chinese satellites hurling through space and other achievements of the Beijing government. 
In contrast the news bulletins, which are produced by China Radio International, tended to strike an ominous tone when reporting on the US economy.
In addition, Chinese officials broadcast news bulletins in Philadelphia, Atlanta and other cities, according to Reuters.
The programming of WCRW and the other stations, according to the report, Chinese Influence and American Interests, are part of what is known as the Grand External Propaganda Campaign
Chinese broadcasters say on the station that they're offering listeners in the area "perspective" and "commentary" on news and current events so that people in the US can "learn what China is thinking and saying".
A new kind of honey trap
For the Chinese agents, Mallory was a catch. 
He has dark brown hair, a broad smile and an easy-going manner, and he does not drink alcohol or coffee. 
He had worked as a covert CIA officer and held security clearances that gave him access to the nation's most valuable secrets.
By the time he was approached by the Chinese in early 2017, though, he was working as an independent consultant and was struggling to make ends meet.
Randall Phillips, an investigator with the Mintz Group, previously served as the CIA's chief representative in China. 
Speaking on the phone from Shanghai, he says the Chinese agents tried to make Mallory feel special. "They played with the guy's vanity," says Phillips. 
It's a time-honoured technique often joked about. 
"I keep waiting for the honey trap," one CIA official said recently in a Washington bar.
The Chinese agents approached Mallory not in a bar but on LinkedIn, saying in a casual way: "Hey, will you join my network?'"
According to court records. 
Mallory replied: "I'm open to whatever. I've got to -- you know -- pay the bills."
Mallory lived next to a golf course
They told him they were looking for someone with his professional background, the same ploy they had used on European members of parliament, according to the German domestic intelligence service.
A German official says that the Chinese agents have become more perfidious on LinkedIn over the past year. 
Paul Rockwell, LinkedIn's head of trust and safety department, says they're concerned about the recruitment efforts of Chinese agents: "We are committed to stopping this behaviour."
Beijing officials dispute the Germans' account, calling it "groundless".
Living the Dream
Mallory, one of nine children, graduated from university in Utah with a political science degree and spent time in the military before working as a CIA operative. 
He lived in Iraq, China and Taiwan and married Mariah Nan Hua in Taipei.
In 2006, they bought their house in Raspberry Falls for $1.16m, with their three children, an adopted Alaskan malamute-style puppy Misty and another husky, Sierra.
Mallory and his wife spoke Chinese at home, a place decorated with brightly coloured throw pillows, a framed picture of a Mormon tabernacle and a rice cooker resting on a kitchen counter.
His own life reflected the way Americans and native Chinese speakers have come together in northern Virginia over the years. 
About 14% of the population in Loudon County is Chinese American, according to census data.
On Sundays Mallory and his wife would head to church, where he was known as Zhiping Mao
Many of their friends at church are native Chinese speakers -- they sing lyrics in Chinese (you can follow the English-language version in a hymnbook) in a back room.Leesburg has several Chinese businesses
Others at the church have a similar background to Mallory. 
Fluent in Chinese, these middle-aged men work for the CIA or other intelligence agencies. 
As one of Mallory's friends commented, "You can't swing a dead cat without hitting someone with a security clearance."
Mallory used to remind people in Raspberry Falls how lucky they are. 
"He'd say: 'You're living the American dream," recalls a family friend. 
"He'd tell people they should appreciate what they have."
Another friend, Delrose Winter, recalls a day when Mallory and his family came over for a Fourth of July barbecue. 
They wore red, white and blue on that Independence Day and seemed "very patriotic", she says.
But after the 2008 real estate crash, his fortunes changed. 
His house plummeted in value, and later he lost his job. 
A scientist who lives nearby, says: "They were under severe financial stress." 
Another neighbour says: "They were under water", adding: "That contributed to his desperation."Mallory struggled to support his family in Raspberry Falls
Seeking access to the White House
By the time the Chinese agents got in touch with Mallory, he had $30,000 USD in credit card debt, according to court records, and was behind in his mortgage payments.
His new acquaintance on LinkedIn introduced him to someone who worked for the Shanghai Academy of Social Sciences, a think-tank that provides offices for scholars and cover for intelligence agents. 
He offered Mallory a position as a consultant.
Mallory flew to Shanghai and met his new bosses in a hotel room. 
These men did not say they worked for the intelligence agency, but they did not deny it either. 
During that meeting, the hair on Mallory's neck stood up, he later said. 
He had agreed to take their money, though.
"They get you to cross a line," says Phillips, the former CIA officer. 
"Once you do, it's harder to get out."
Mallory returned to Leesburg with a Samsung Galaxy phone the Chinese had given him -- complete with a chat application by which they communicated with him.
That phone later proved to be his downfall.
When he got home, he told his wife he had concerns about his new job. 
Despite his reservations, though, he provided the Chinese with information he had obtained while working in the US intelligence services. 
According to US officials, some of the material that he gave to the Chinese was classified.
Mallory said that the agents told him: "We just want to understand what Trump administration policy is going to be."
He told the Chinese he had applied for a job in the White House, and they encouraged his efforts. 
The agents also prodded him for information about missile defence systems and other sensitive issues.Mallory placed classified material on a Toshiba SD card, shown above
But then things got really complicated for Mallory.
He texted a CIA resource officer and a covert operative, both of whom attended his church, and said he was hoping to speak to someone in the CIA's East Asia division.
He said later he was looking to tell the CIA what he was learning about the Chinese agents -- effectively becoming a double agent.
These text messages began to take on a frantic tone. 
Psychiatrist David Charney who has interviewed several convicted spies, says they realise at a certain point they "can never go home", which can lead to deep apprehension and terror.
Mallory placed classified material that he had obtained during the time that he worked for US intelligence agencies on a Toshiba SD card, wrapping it in tinfoil and stashing in his bedroom closet.
He told the Chinese agents he was worried that US authorities would discover his subterfuge: "If they were looking for me in terms of state secrets and found the SD card we would not be talking today."
A rookie spy - and a computer glitch
Mallory's lawyers said that he did nothing wrong. 
They said he was simply collecting information about Chinese espionage so he could inform the CIA about Beijing's methods. 
He hoped to impress the CIA with his knowledge of Chinese tradecraft so the CIA would hire him back.
But prosecutors presented text messages in court as evidence that he was selling US secrets: "Your object is to gain information," he texted the Chinese agents. 
"My object is to be paid."
The story of how they obtained those texts is enough to make
Mallory arranged to meet with a CIA official in an Ashburn hotel in May 2017. 
Mallory's lawyers said that he was planning to show off his knowledge of the Chinese espionage techniques. 
The prosecutors said Mallory wanted to speak with the CIA officials not to impress them with his knowledge but because he wanted to cover his tracks.
Mallory was clearly surprised when an FBI special agent also showed up for the meeting, as prosecutors later showed in court. 
The presence of the FBI agent showed that federal investigators were interested in Mallory. 
Still he carried on as if everything was fine. 
He described the way the Chinese had provided him with a secure phone. 
At this point, he assumed that his text messages would remain encrypted.Mallory texted the Chinese agents on a Samsung Galaxy that they gave him
But as he spoke, the phone crashed. 
The messages suddenly appeared on the phone's screen while he was in the room with the FBI, revealing how he had betrayed his country. 
For a long moment he said nothing. 
James Hamrock, an engineer who examined the phone for the FBI, says that Mallory was overly trusting of the phone and of the people who gave it to him. 
Unbeknownst to Mallory, the software had a glitch.
Two of the counts, both relating to where he had committed the crimes, have been dropped. 
The government is trying to get the charges reinstated. 
These two charges do not affect his sentence, however: life in prison.
Mallory wrecked his own life and cast suspicion on others. 
Many of the native Chinese speakers who live in Loudoun County are angry. 
"We're American first," says Taiwan-born Eiling Chao, who runs her own company, Choice Insurance Network, with her daughter, Stephanie Chao, and other family members. 
"If there's any spying action happening, I certainly hope the person gets punished to the fullest."
Eiling Chao, shown with Stephanie, says the US should fight hard against espionage
A jailhouse phone call
US officials have studied the crime of espionage, creating an acronym that establishes motives: MICE (money, ideology, compromise and ego). 
It's true that Mallory wanted to make money from the Chinese, but in the end it was not much: he earned $25,000 USD from his spy work.
Mallory's house is now on the market: a short sale, it's listed at $740,000 and has lost more than a third of its value. 
The Chinese banner has been taken down. 
Misty and Sierra still lie on a patch of woodchips in the yard on sunny afternoons. 
They barely look up when a mailman comes.
Mallory is being held in the Alexandria Detention Center in Virginia, and he is waiting for his sentencing. 
He was in the courtroom on an autumn morning, and he wore Velcro sneakers, white socks and a prison jumpsuit, and his face was ashen.
During a phone call to his daughter from jail, he tried to explain why he had been arrested. 
"Your mom knows I've been all up front with all this kind of stuff with the CIA," he said and, referring to the FBI agents, said: "Somehow these other guys twisted things around a little bit." 
He said: "Things get complicated sometimes."
The jury wrote a note to the judge, stating their verdict
Mallory's wife, "an absolute rock", as a friend describes her, is now driving a school bus. 
Jeremiah leads the church group in prayer and has the grace that comes from years of studying ballet. 
He is getting ready to go on a two-year missionary in Australia, following his brother, Michael, 22, who is there now. 
Jeremiah wrote to the court in October and asked if he could hug his father before he leaves: "It would be an unforgettable blessing to have a last moment with my Dad."
Many of the Americans who have committed treason were once model citizens who went into a downward spiral and thought espionage would help them turn things around. 
Behind bars they still see themselves as "patriotic", says David Charney, the psychiatrist. 
That seems to be true with Mallory: he calls his friend Patsy Clark from jail, and she says he remains loyal to the US.
"They were never hating the US," Charney said in a Washington lecture: "Their only beef was with themselves." 
He added: "Weirdly enough, they're still good Americans."