Seeking Alpha

U.S. indicts Chinese officers over industrial espionage

  • The U.S. has charged five Chinese military officers for hacking into American nuclear, metal and solar companies to steal trade secrets.
  • Companies that the suspects targeted include Alcoa (AA), Allegheny Technologies (ATI), United States Steel (X), Toshiba (TOSBF) unit Westinghouse Electric, the U.S. operations of SolarWorld (SRWRD), and a steel workers' union.
  • Officials said the firms suffered "significant" losses, although they declined to provide details.
  • Alcoa said that to its knowledge, "no material information was compromised."
  • The U.S. probably won't be able to prosecute the officers, as China is unlikely to hand them over.
  • The charges come amid long-running tension between the U.S. and China over cyber-espionage. Documents leaked by Edward Snowden show that the U.S. has tampered with Cisco-made equipment that was for sales overseas.
Comments (13)
  • hschm48031
    , contributor
    Comments (3) | Send Message
     
    If it's true, it falls in the category of "well, everybody does it" since the Snowden release of communications showed that we, at least, did spy on foreign corporations, as well as foreign leaders. The proper response is not to accuse other governments, but to talk to other governments, and see if there is a way to get the problem corrected. As with so many other things, domestic politics stands in the way of constructive steps to deal with issues like these. Good time to start talking is after the Congressional elections.
    20 May, 11:09 AM Reply Like
  • User 195396
    , contributor
    Comments (373) | Send Message
     
    Not sure why anyone is surprised-consider what the NSA is doing world wide and the US is bellowing about industrial espionage!?-it is up to the companies and the govt to protect what needs to be protected-it is indeed being done by all industrial countries, our "allies" included.
    20 May, 11:41 AM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (284) | Send Message
     
    sounds like you are a graduate of the neville chamberlain/barack obama school of diplomacy. they call people like you "victim".
    20 May, 02:11 PM Reply Like
  • User 195396
    , contributor
    Comments (373) | Send Message
     
    classy-ok, we will see how this plays out while the idiots in DC bellow that they are going to apply "SANCTIONS" oh mercy, clutch the pearls.
    20 May, 02:21 PM Reply Like
  • User 195396
    , contributor
    Comments (373) | Send Message
     
    Blue, it is not a big deal, really-it is all political theater in DC:

     

    http://nyti.ms/1jS6jMc
    20 May, 02:54 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (284) | Send Message
     
    agreed that private companies need to take responsibility for their own security and what our govt is doing with the NSA, especially with regard to our own citizens, is egregious. I take exception with his comment that we should "talk to other governments, and see if there is a way to get the problem corrected". There is no talking to China. They see us as their adversary and see any request by our president for "talking" as another opportunity to gain the upper hand against a clueless opponent.
    28 May, 04:34 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (284) | Send Message
     
    simple, the solution is to collect the damages through import tariffs. no referral to any world court or hearing body. you know they did. they know they did it.
    28 May, 04:37 PM Reply Like
  • David INC.
    , contributor
    Comments (229) | Send Message
     
    During WW2 -This was a commonly know as "Nips in the wire"- invading army would just charge in and take everything.
    20 May, 11:55 AM Reply Like
  • sofiacaden
    , contributor
    Comments (43) | Send Message
     
    Toshiba introduced a bunch of products at CES 2014, and has already shown off two upcoming Windows 8.1 notebooks with 4K displays http://bit.ly/1nnCVkO
    22 May, 03:30 AM Reply Like
  • Mike Holt
    , contributor
    Comments (1538) | Send Message
     
    These actions to stop China's rampant cyber theft activities are long overdue. In the past, Chinese officials dismissed our concerns in this regard by demanding that we "prove it." Now that we have, and this is just the tip of a very large iceberg, they demand that we not expose their theft. Have we become so dependent on China that we must now behave like victims of domestic violence?

     

    And, rather than promising to stop stealing info from American corporations, they are threatening to take further actions to tilt the economic "playing field" in favor of Chinese State Owned Companies and State Champions. But, the CCP already demands that non-Chinese companies seeking to conduct business in China do so in ways that would also facilitate the "transfer" of their know how and intellectual property to Chinese companies, so what else is left for them to do? Are we about to witness them once again using their carefully crafted monopoly over critical rare earths based components for geopolitical purposes? And what is the point of them increasing their government subsidies to Chinese automobile companies when there is already tremendous excess capacity among those companies? Rather than further tilting the scales against foreign competitors, the economic distortions caused by these additional Chinese government interventions could easily backfire.

     

    The US can't continue to rely on the Federal Reserve as the panacea for all of the harm being done to Americans as a result of what amounts to economic warfare. Even the Japanese realize that it will take more than central bank actions to revive their economy. Its time to realize that free trade is not free trade when those to whom you have opened the door are abusing this relationship in any and every way that they can find, largely to support an increasingly militant regime that seems more intent on punishing the world for China's past century of humiliation than seeking to become a more responsible stakeholder in a global society.

     

    China's economy is very fragile due to the masive amounts of debt they have incurred since 2007 to fund malinvestments intended to impress even though the foolhardiness of their spending and unaffordable debt has become increasingly obvious to even the most casual observers. So, now is not the time for the CCP to be increasing its beligerent behavior, whether it be directed against the US, Vietnam, or the Philippines.
    24 May, 10:51 AM Reply Like
  • Shaduc
    , contributor
    Comments (1355) | Send Message
     
    " now behave like victims of domestic violence?"

     

    Because the USA govt realises that they are in decline.

     

    http://bit.ly/S3qctv
    http://bit.ly/S3qalz
    24 May, 10:58 AM Reply Like
  • Shaduc
    , contributor
    Comments (1355) | Send Message
     
    "Now is not the time for the CCP to be increasing its beligerent behavior, whether it be directed against the US, Vietnam, or the Philippines."

     

    CN WILL absorb the islands in the (economic tradeoff) future. Just like any govt., the CCP is actively stating to the stakeholders of its increasing interest in the islands, so that the people can get riled over a nationalistic fervour over this, then focus on the citizen's effective increasing costs of living.

     

    The USA has to stay indifferent. Or else, e.g. Boeing will lose orders!
    24 May, 12:27 PM Reply Like
  • Mike Holt
    , contributor
    Comments (1538) | Send Message
     
    http://cfa.is/S3uK36
    24 May, 11:18 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector