Retired Air Force Gen. Michael Hayden told Newsmax on
Tuesday that China would most assuredly fire back against
the United States "one way or another" after six Chinese
nationals were indicted for stealing wireless technology
from two large American companies in a scheme hatched in
2006 after three of them left the University of Southern
California with graduate degrees.
"Stand by to be boarded, the Chinese are going to retaliate
one way or another because of this," Hayden, who directed
both the CIA and the National Security Agency, said in an
exclusive interview.
"If I'm advising Americans traveling to China or American
companies doing business in China, I would say be extra
cautious so as not to give the Chinese a pretext to
retaliate against them," he said.
Three of the nationals — Hao Zhang, Wei Pang, and Huisui
Zhang — were
indicted for conspiring to steal technology
from Skyworks Solutions and Avago Technologies soon after
they graduated together from USC, according to federal
prosecutors.
The companies supply parts for Apple’s iPhone and other
devices,
The Wall Street Journal reports. The
technology also has military applications, according to
The Financial Times.
They all were charged with economic espionage and trade
secret theft in a 32-page indictment that was unsealed after
Hao Zhang was arrested Saturday at Los Angeles International
Airport.
He had arrived from China to attend a scientific conference,
according to officials. Hao Zhang was being held in custody
after a brief court appearance on Monday in Los Angeles. The
five others are believed to be in China.
According to the indictment, they allegedly stole "recipes,
source code, specifications, presentations, design layouts
and other documents marked as confidential."
They had hoped to use the stolen U.S. data to set up a
factory in China to manufacture technology that eliminates
interference from wireless communications, according to the
indictment.
The USC graduates had received encouragement and support
from officials at the state-run Tianjin University, the
indictment states.
The theft of U.S. technology by foreign governments is one
of the biggest threats to the country's economy and national
security, officials said. They are particularly concerned
with China.
"This case demonstrates that the U.S. is committed to
protecting U.S. companies' trade secrets and their
proprietary business information from theft," State
Department spokesman Jeff Rathke said Tuesday. "This is an
important issue for the United States."
A representative at the Chinese Embassy in Washington did
not immediately respond to a request for comment, while the
Chinese consulate in San Francisco said it was unaware of
the indictment and declined to comment.
Hayden told Newsmax that he was "glad to see" the men
charged. "That’s a crime. They’re prosecuting a crime."
He remarked, however, at the boldness of Chinese spying
against the U.S. in recent years.
"I publicly say that I stand back in awe at the breath,
depth, and persistence of the Chinese espionage effort
against the United States," Hayden said. "It is a thing to
behold."
Hayden referenced the 2009 case involving the Rio Tinto
mining company in Australia in his belief that Beijing would
repay the U.S. for the indictment.
That year, China arrested four Rio Tinto employees in
Shanghai and an Australian import executive, charging them
with bribery and espionage in the alleged theft of Chinese
trade secrets.
Beijing later dropped the espionage charges, and the five
were later convicted of bribery. One of the Rio Tinto
workers received as much as 10 years in prison.
"They have a different understanding of what constitutes
espionage there," Hayden said. "They're liable to sweep up a
foreigner or a foreign-national employee of an American
firm, and because they had a business lunch with a Chinese
citizen who talked about some aspect of business, the
Chinese will define that as a state secret and prosecute
them.
"That could very well happen again, but that doesn't
discourage me," Hayden said. "This is the right thing to
do."
Elaborating further, he described the Chinese definition of
espionage as including "industrial secrets, trade secrets,
and intellectual property, which they steal for profit."
According to the indictment in this case, Wei Pang sent an
email to China within months after the nationals graduated
in 2006 saying that the technology they planned to steal was
worth $1 billion a year in the phone market alone.
In 2006, Hao Zhang worked for Skyworks Solutions in Woburn,
Massachusetts, and Wei Pang took a job in Fort Collins,
Colorado, with Avago Technologies. That company is based in
San Jose, California, and Singapore.
The men quit their U.S. jobs in spring of 2009 to become
professors at Tianjin University, a prestigious Chinese
college 130 miles southeast of Beijing. They worked with
administrators and a graduate student to establish a Chinese
company to make the technology from the data they had
stolen, according to the indictment.
"This could be just raw theft for profit by these
individuals," Hayden told Newsmax.
"They're very aggressive," he added of Beijing overall.
"They're not the best in the world at it. They're actually
fairly noisy.
"The Russians are much more sophisticated, but the scale of
the Chinese efforts is just amazing."
The Associated Press contributed to this report.