As Australia launches probe, skeptics cast doubts on Chinese defector’s spy claims

Wang LiqiangAs the Australian government has launched an official investigation into the claims made by a self-styled Chinese intelligence defector, some skeptics have begun to cast doubts about his revelations. The claims of Wang “William” Liqiang have dominated news headlines in Australia for over a week. The 26-year-old from China’s eastern Fujian province reportedly defected to Australia in October, while visiting his wife and newborn son in Sydney. He is currently reported to be in a safe house belonging to the Australian Security Intelligence Organization (ASIO).

The Australian spy agency confirmed last week that Mr. Wang had provided a 17-page sworn statement, in which he detailed his work as an undercover intelligence officer for Chinese military intelligence. He is also said to have shared the identities of senior Chinese intelligence officers in Taiwan and Hong Kong, and to have explained how they plan to carry out espionage operations on behalf of Bejing. Some media reports claimed that Mr. Wang had shared details about deep-cover Chinese intelligence networks in Australia. The Australian government said on Tuesday that an official investigation had been launched into Mr. Wang’s claims.

But some skeptics in Australia and elsewhere have begun to raise doubts about the Chinese defector’s claims, suggesting that he has given little —if any information— that is genuinely new. Some argue that Mr. Wang is much too young to have been entrusted with senior-level responsibilities in the intelligence agency of a country that rarely promotes twenty-somethings in high-ranking positions. Additionally, Mr. Wang appears to have no military background —he claims to have been recruited while studying fine art— which is not typical of a Chinese military intelligence operative.

Furthermore, Mr. Wang episode interviewers from Australian television’s 60 Minutes program that he began feeling tormented by moral dilemmas when his staff officers supplied him with a fake passport bearing a different name, in preparation for an operation in Taiwan. However, by his own admission, Mr. Wang had been supplied with fake passports for previous operations, so it is not clear why he lost his nerve at the time he did. In fact, case officers usually covet the opportunity to go undercover and feel a sense of exhilaration when they receive fake identification documents for an undercover mission.

Is Mr. Wang not sharing the entire background to his decision to defect to Australia? Or could he be deliberately amplifying his role in Chinese intelligence, in an effort to appear useful to the Australian government and thus secure political protection by Canberra? In the words of Alex Joske, an analyst at the  International Cyber Policy Centre of the Australian Strategic Policy Institute, the details in some of Mr. Wang’s claims mean that “government investigations should uncover the facts eventually. But we don’t know the full story and we probably never will”.

Author: Joseph Fitsanakis | Date: 26 September 2019 | Permalink

Chinese defector reveals identities of Chinese undercover spies in Asia and Australia

Wang LiqiangA Chinese intelligence defector has reportedly given the Australian government information about entire networks of Chinese undercover spies in Hong Kong, Taiwan and Australia, according to reports. The story of Wang “William” Liqiang, made headlines all over Australia during the weekend, culminating in an entire episode of 60 Minutes Australia about him airing on Sunday. The 26-year-old from China’s eastern Fujian province reportedly defected to Australia in October, while visiting his wife and newborn son, who live in Sydney. He is currently reported to be in a safe house belonging to the Australian Security Intelligence Organization (ASIO).

Police in the Chinese city of Shanghai claim that Mr. Wang is a small-time criminal who has been found guilty of using fraudulent documents and has a 15-month suspended prison sentence on his record. In a statement issued on Sunday, China’s embassy in Canberra described Mr. Wang as a “convicted fraudster” who was “wanted by police after fleeing [China] on a fake passport”. But according to reports in the Australian media, Mr. Wang has provided the ASIO with a 17-page sworn statement, in which he details his work as an undercover intelligence officer. He is also said to have shared the identities of senior Chinese intelligence officers in Taiwan and Hong Kong, and to have explained how they organize and implement espionage operations on behalf of Bejing.

In a leading article published on Saturday, The Sydney Morning Herald referred to Mr. Wang as “the first Chinese operative to ever blow his cover” and claimed that he had given the ASIO “a trove of unprecedented inside intelligence” about Chinese espionage operations in Southeast Asia. The newspaper said that the defector had revealed details about entire networks of Chinese intelligence operatives in Taiwan and Hong Kong. He also reportedly provided identifying information about deep-cover Chinese intelligence networks in Australia.

Meanwhile, in an unrelated development, Australian media said yesterday that the ASIO was examining allegations that a Chinese espionage ring tried to recruit an Australian businessman of Chinese background and convince him to run for parliament. According to reports, the spy ring approached Nick Zhao, a successful luxury car dealer, and offered to fund his political campaign with nearly $700,000 (AUS$1 million) if he run as a candidate for the Liberal Party of Australia. Zhao reportedly told the ASIO about the incident last year, shortly before he was found dead in a Melbourne hotel room. His death remains under investigation.

Author: Joseph Fitsanakis | Date: 25 November 2019 | Permalink

FBI files espionage charges against California man who allegedly spied for China

Xuehua Edward PengThe United States has pressed espionage charges against a naturalized American citizen who operated as a courier for Chinese intelligence while working as a tour operator in California. On Monday federal prosecutors in San Francisco filed espionage charges against Xuehua “Edward” Peng, a 56-year-old Chinese-born American citizen. Peng, a trained mechanical engineer, reportedly entered the United States in June 2001 on a temporary visa. In 2012 he became a naturalized American citizen. By that time he was working for US Tour and Travel, an independent tour operator in California.

On Friday, officers with the Federal Bureau of Investigation arrested Peng at his home in Hayward, California, and charged him with spying on behalf of the Ministry of State Security (MSS), which is China’s primary external intelligence agency. At a press conference held on Monday, David Anderson, US Attorney for the Northern District of California, said that Peng began working for the MSS in June 2015 and continued to do so until June of 2018. Throughout that time, Peng participated in at least six dead drops on behalf of the MSS, said the FBI. But he was unaware that the agent on the other end of the dead drop was in fact an FBI informant, who had lured Peng and the MSS into an elaborate sting operation. The informant is referred to in the indictment as “the source”. The FBI said it paid the informant nearly $200,000 to facilitate the sting operation.

Most of the dead drops took place at a hotel in Newark, California. Peng would book a room in the hotel using a popular online booking service. He would check in and go to his hotel room, where he would hide envelopes containing as much as $20,000 in cash. He would then leave the room key at the front desk for his contact to pick up. The contact (the FBI informant) would pick up the key and the cash, and leave memory sticks with classified US government information for Peng to pick up. Peng would then travel to China to deliver the classified information to the MSS.

Unbeknownst to Peng, the FBI was monitoring him all along, and managed to secretly tape his alleged espionage activities. The surveillance footage is now part of the federal affidavit that was unsealed on Monday. Moreover, the FBI appears to have given Peng classified information that was approved for the purposes of the counterespionage operation against him. It is not known whether the classified information was real, deceptive, or a mixture of the two. It is worth noting that Peng is not a foreign diplomat and is therefore not subject to the rules of diplomatic immunity. He now faces a maximum of 10 years in prison and a fine of up to $250,000 if convicted.

Author: Joseph Fitsanakis | Date: 01 October 2019 | Permalink

In unprecedented move, US plans to block undersea cable linking US with China

undersea telecommunications cableIn a move observers describe as unprecedented, a United States government regulator is preparing to recommend blocking the construction of an 8,000-mile long undersea cable linking America with China, allegedly due to national security concerns. Washington has never before halted the construction of undersea cables, which form the global backbone of the Internet by facilitating nearly 100% of Internet traffic. Much of the undersea cable network is in the process of being replaced by modern optical cables that can facilitate faster Internet-based communications than ever before.

One such scheme is the Pacific Light Cable Network (PLCN), an 8,000-mile undersea cable construction project funded by Google, Facebook and Dr. Peng Telecom & Media Group Co., one of China’s largest telecommunications-hardware manufacturers. The PLCN’s completion will produce the first-ever direct Internet link between Los Angeles and Hong Kong, and is expected to increase Internet speeds in both China and the United States. Most of the PLCN has been laid and its completion is projected for this year.

But now an American regulatory panel plans to recommend blocking the PLCN’s final construction phase. According to The Wall Street Journal, the panel fears that the $300 million undersea cable project may facilitate Chinese espionage. The Justice Department-led panel is known as Team Telecom and consists of officials from several American government agencies, said the paper, citing “individuals involved in the discussion” about PLCN.

Never before has the US blocked the construction of an undersea cable, reported The Journal. National security concerns have been raised with reference to past undersea cable projects, some of whom were partially funded by Chinese-owned companies. But the projects eventually went ahead after the manufacturers were able to demonstrate that the design of the undersea cables forbade the installation of wiretaps. If the PLCN project is blocked, therefore, it will be the first such case in the history of the Internet in America.

The paper said that supporters of the PLCN argue that it would give American government regulators more control over the security of Internet traffic before it even reaches US territory. Additionally, PLCN investors claim that the completion of the project will provide American companies with broader access to consumers in Asia. Google, Facebook, Dr. Peng Telecom and the US government declined to comment on the news report.

Author: Joseph Fitsanakis | Date: 29 August 2019 | Permalink

Swiss to extradite brother of ‘leading biochemist’ who spied for Chinese firm

GlaxoSmithKlineA Swiss court has ordered the extradition to the United States of the brother of one of the world’s leading biochemists, who spied on a British pharmaceutical firm to help a Chinese startup. The extradition is part of a large corporate espionage case centered on Yu Xue, a Chinese scientist described by US federal prosecutors as “one of the world’s top protein biochemists”. Yu specializes in drug research for cancer and other serious terminal illnesses. From 2006 until 2016 he worked in the US for GlaxoSmithKline (GSK), a leading British pharmaceutical group.

In 2018, Yu was arrested by US authorities for stealing trade secrets from a GSK research facility in the US state of Pennsylvania, and giving them to a Chinese startup pharmaceutical company called Renopharma. He eventually pleaded guilty to stealing proprietary data from GSK, in a case that the US Department of Justice described as a textbook example of Chinese “economic warfare” against America. US government prosecutors also claim that Renopharma is almost wholly funded the Chinese government. The three co-founders of the Chinese firm have also been charged with corporate espionage targeting a US firm.

On May 28 Yu’s brother, Gongda Xue, was arrested in Basel, Switzerland. According to the US government, Gongda used GSK data stolen by his brother to carry out drug experimentation at the Friedrich Miescher Institute for Biomedical Research, where he worked as a post-doctoral trainee between 2008 and 2014. On Tuesday, the Swiss Federal Office of Justice (FOJ), ruled in favor of a request by the US government to extradite Gongda so he can be tried in Pennsylvaia. According to the FOJ, the Chinese scientist will be extradited as soon as his 30-day appeal period expires.

Author: Ian Allen | Date: 17 July 2019 | Permalink

Poland frees on bail former intelligence officer arrested for spying for China

Orange PolskaThe Polish government has authorized the release on bail of a former counterintelligence officer who was charged in January of this year with spying for China. The man has been identified in media reports as Piotr Durbajlo and is believed to have served as deputy director of the Internal Security Agency, Poland’s domestic counterintelligence service. A cyber security expert, Durbajlo also served in Poland’s Office of Electronic Communications with a top security clearance and unrestricted access to classified systems of Poland and the North Atlantic Treaty Organization, of which Poland is a member.

However, at the time of his arrest on January 10, Durbajlo had left government service and was a mid-level executive at Orange Polska. The company operates as the Polish branch of a French multinational telecommunications carrier with sister companies in several European Union countries. Along with Durbajlo, Polish authorities arrested Wang Weijing, a Chinese national who worked for the Chinese telecommunications manufacturer Huawei. Orange Polska is Huawei’s main domestic partner in Poland. Wang reportedly learned Polish at the Beijing Foreign Studies University. In 2006 he was posted by the Chinese Ministry of Foreign Affairs at the Chinese consulate in Gdansk, Poland’s largest Baltic Sea port. In 2011 he left the Foreign Service and joined the Polish office of Huawei. Following his arrest on January 10, he was charged with espionage. Huawei denied it had any role in espionage against the Polish state, but fired Wang nonetheless. Both Wang and Durbajlo have been in pretrial detention since their arrest in January.

On Friday, July 5, Durbajlo’s legal team announced that he would be set free on July 7, on a $31,500 bail that must be paid within 30 days to secure his release. His lawyers explained that the charges against him had not been dropped, but did not explain why he was being released. It is worth noting that Durbajlo’s release on bail was announced during a visit to Poland by a high-level Chinese delegation, aimed at discussing economic and political ties between Warsaw and Beijing. Late on Tuesday it was announced that Wang would remain in pretrial detention for at least three more months.

Author: Joseph Fitsanakis | Date: 10 July 2019 | Permalink

Attack by Chinese hacker group targeted high-profile individuals around the world

Operation SOFTCELLA hacker attack of impressive magnitude targeted specific individuals of interest to the Chinese government as they moved around the world, in what appears to be the first such operation in the history of cyberespionage. The attack was revealed late last month by Cybereason, an American cybersecurity firm based in Boston, Massachusetts. Company experts described the scope and length of the attack, dubbed Operation SOFTCELL, as a new phenomenon in state-sponsored cyberespionage. Cybereason said SOFTCELL has been in operation since at least 2017, and identified the culprit as APT10, a hacker group that is believed to operate on behalf of China’s Ministry of State Security.

The operation is thought to have compromised close to a dozen major global telecommunications carriers in four continents —the Middle East, Europe, Asia and Africa. According to Cybereason, the hackers launched persistent multi-wave attacks on their targets, which gave them “complete takeover” of the networks. However, they did not appear to be interested in financial gain, but instead focused their attention on the call detail records (CDRs) of just 20 network users. With the help of the CDRs, the hackers were able to track their targets’ movements around the world and map their contacts based on their telephone activity. According to The Wall Street Journal, which reported on Cybereason’s findings, the 20 targets consisted of senior business executives and government officials. Others were Chinese dissidents, military leaders, as well as law enforcement and intelligence officials.

An especially impressive feature of SOFTCELL was that the hackers attacked new telecommunications carriers as their targets moved around the world and made use of new service providers. The attacks thus followed the movements of specific targets around the world. Although this is not a new phenomenon in the world of cyberespionage, the geographical scope and persistence of the attacks are unprecedented, said The Wall Street Journal. Speaking last week at the 9th Annual International Cybersecurity Conference in Tel Aviv, Israel, Lior Div, Cybereason’s chief executive officer and co-founder, said SOFTCELL attacks occurred in waves over the course of several months. The hackers used a collection of techniques that are commonly associated with identified Chinese hacker groups. If detected and repelled, the hackers would retreat for a few weeks or months before returning and employing new methods. The Cybereason security experts said that they were unable to name the targeted telecommunications carriers and users “due to multiple and various limitations”.

Author: Joseph Fitsanakis | Date: 09 July 2019 | Permalink

Despite spying allegations, African Union deepens ties with Chinese telecoms firm

African UnionDespite allegations in the French press that China has been spying for years on the internal communications of the African Union, the organization appears to be deepening its ties with a leading Chinese telecommunications firm. The allegations surfaced in January of last year in the Paris-based Le Monde Afrique newspaper. The paper claimed in a leading article that African Union technical staff found that the computer servers housed in the organization’s headquarters in Addis Ababa, Ethiopia, were secretly communicating with a server facility in Shanghai, China. The secret communications reportedly took place at the same time every night, namely between midnight and 2 in the morning. According to Le Monde Afrique, the African Union servers forwarded data to the servers in Shanghai from 2012, when the building opened its doors, until early 2017.

Beijing donated $200 million toward the project and hired the state-owned China State Construction Engineering Corporation to build the tower, which was completed in 2012. Since then, the impressive 330 feet, 19-storey skyscraper, with its reflective glass and brown stone exterior, has become the most recognizable feature of Addis Ababa’s skyline. The majority of the building material used to construct the tower was brought to Ethiopia from China. Beijing even paid for the cost of the furniture used in the impressive-looking building. The paper noted that, even though the organization was allegedly notified about the breach by its technical staff in January of 2017, there was no public reaction on record. However, according to Le Monde Afrique, African Union officials took immediate steps to terminate the breach. These included replacing the Chinese-made servers with new servers purchased with African Union funds, without Beijing’s mediation. Additionally, new encryption was installed on the servers, and a service contract with Ethio Telecom, Ethiopia’s state-owned telecommunications service provider, which uses Chinese hardware, has been terminated.

Last week, however, the African Union deepened its ties with Huawei Technologies, the Chinese telecommunications firm that provided all the hardware, as well as much of the software, used in the organization’s headquarters. Last week, at a meeting in the Ethiopian capital, Thomas Kwesi Quartey, deputy chair of the African Union’s Commission signed a memorandum of understanding with Philippe Wang, Huawei’s vice president for North Africa. According to the memorandum, Huawei will increase its provision of hardware and services to the African Union “on a range of technologies”. These range from broadband telecommunications to cloud computing, as well as 5G telecommunications capabilities and artificial intelligence systems. The Chinese firm will also continue to train African Union information technology and telecommunications technicians. Both the African Union and the government of China have denied the Le Monde Afrique allegations.

Author: Joseph Fitsanakis | Date: 07 June 2019 | Permalink

German spies dismiss US warnings about Huawei threat to 5G network

Huawei 2German intelligence officials appear to be dismissing Washington’s warning that it will limit security cooperation with Berlin if China’s Huawei Telecommunications is allowed to build Germany’s 5G network. The company, Huawei Technologies, is a private Chinese venture and one of the world’s leading telecommunications hardware manufacturers. In recent years, however, it has come under scrutiny by some Western intelligence agencies, who view it as being too close to the Communist Party of China. More recently, Washington has intensified an international campaign to limit Huawei’s ability to build the infrastructure for 5G, the world’s next-generation wireless network. Along with Britain, Australia and Canada, the US is concerned that the Chinese telecommunications giant may facilitate global wiretapping on behalf of Beijing’s spy agencies.

In the past several months the United States has repeatedly warned Germany that intelligence sharing between the two countries will be threatened if the Chinese telecommunications giant is awarded a 5G contract by the German government. In March, Washington informed German officials that intelligence cooperation between the two allies would be severely impacted if Chinese telecommunications manufacturers were given the green light to build Germany’s 5G infrastructure. The warning was allegedly included in a letter to Peter Altmaier, Germany’s Minister of Economic Affairs and Energy, written by Ambassador Richard Grenell, America’s top diplomat in Germany. The letter urged the German government to consider rival bids by companies belonging to American allies, such as the Swedish telecommunications equipment manufacturer Ericsson, Finland’s Nokia Corporation, or the South Korean Samsung Corporation.

But a report by Bloomberg on Wednesday said that German authorities were not convinced by Grenell’s argument. Citing “four people with knowledge on the matter”, the news agency said that Germany’s intelligence community see Washington’s warnings as “political grandstanding”. The US and Germany “need each other’s resources to tackle global conflicts” and “rely on each other too much to risk jeopardizing crucial data sharing”, said the report. The anonymous officials told Bloomberg that Germany does benefit from America’s “vast array” of intelligence. However, German spy agencies also provide their American counterparts with crucial intelligence from several regions of the world, they said. The US Department of State did not comment on the Bloomberg report. The Chinese government has repeatedly dismissed allegations that Huawei poses an espionage threat to Western nations.

Author: Ian Allen | Date: 18 April 2019 | Permalink

US prosecutors to use secret surveillance evidence in Huawei lawsuit

Huawei 2Prosecutors in the United States have informed lawyers representing the Chinese telecom- munications firm Huawei that they intend to use evidence obtained through secret surveillance in a lawsuit against the company. The case involves the arrest of Meng Wanzhou by Canadian authorities in December of last year. Meng, 47, is Huawei’s deputy chair and chief financial officer, and is the daughter of Ren Zhengfei, a former officer in the Chinese People’s Liberation Army, who founded the telecommunications giant in 1988. She was detained on December 1 in Vancouver at the request of the US, which claims it has evidence that she “tried to evade the American embargo against Iran”. On March 1, the Canadian Department of Justice formally commenced Meng’s extradition process to the US, which Huawei’s lawyers are currently seeking to prevent.

In a lawsuit brought by US government prosecu- tors against Huawei, the Chinese telecom- munications firm is accused of having conspired to defraud several multinational banks by misrepresenting its relationship with a company called Skykom Tech. Washington says that the company is in fact a front used to conceal illicit activities conducted by the Islamic Republic of Iran. American government prosecutors claim that Huawei worked with Skykom Tech to evade US-imposed economic sanctions on Iran. At a Thursday morning hearing in a federal court in Brooklyn, New York, Assistant US Attorney Alex Solomon said that US authorities had used “secret surveillance” to collect evidence against Huawei. He also said that the evidence had been obtained under a US Foreign Intelligence Surveillance Act (FISA) warrant, which is issued by a secret court and usually pertains to counterintelligence investigations —i.e. when a target is suspected of spying against the US.

Solomon said that the evidence against Huawei was “obtained […] from electronic surveillance and physical search”. He did not elaborate, but added that US government’s legal team had notified Huawei that it planned to use the FISA evidence in court. Last month Huawei rejected all charges filed against it. The company has not yet commented on the FISA evidence. The next date in the court case has been scheduled for June 19, 2019.

Author: Ian Allen | Date: 05 April 2019 | Permalink

US warns Germany it will end intelligence sharing if Huawei is given 5G contract

US embassy Berlin GermanyThe United States has warned Germany that intelligence sharing between the two countries will be threatened if the Chinese telecommunications giant Huawei is awarded a contract to build Germany’s 5G network. The company, Huawei Technologies, is a private Chinese venture and one of the world’s leading telecommunications hardware manufacturers. In recent years, however, it has come under scrutiny by some Western intelligence agencies, who view it as being too close to the Communist Party of China. More recently, Washington has intensified an international campaign to limit Huawei’s ability to build the infrastructure for 5G, the world’s next-generation wireless network. Along with Britain, Australia and Canada, the US is concerned that the Chinese telecommunications giant may facilitate global wiretapping on behalf of Beijing’s spy agencies.

But some American allies, including Spain, France and Germany, are not satisfied with Washington’s arguments and claim that the United States is eyeing the financial benefits that would arguably come from its domination of the global digital superhighway. German officials, in particular, have told their American counterparts that Berlin has not seen any evidence that Huawei’s telecommunications hardware come with hidden interception features. Moreover, Germany says that it plans to subject Huawei’s systems to rigorous security tests before using them. On Friday, Washington increased its pressure on Berlin by informing German officials that intelligence cooperation between the two allies would be severely impacted if Chinese telecommunications manufacturers are given the green light to build Germany’s 5G infrastructure.

According to The Wall Street Journal, the warning was included in a letter signed by Ambassador Richard Grenell, America’s top diplomat in Germany. It was allegedly sent to Peter Altmaier, Germany’s Minister of Economic Affairs and Energy. The paper says that Grenell suggests in his letter that Berlin should consider rival bids by companies belonging to American allies, such as the Swedish telecommunications equipment manufacturer Ericsson, Finland’s Nokia Corporation, or the South Korean Samsung Corporation, which is the world’s leading telecommunications hardware manufacturer. The Wall Street Journal did not reveal how it acquired Grenell’s letter, nor did it say whether the German government responded to it.

Author: Ian Allen | Date: 12 March 2019 | Permalink

Firm founded by ex-Blackwater boss to operate in China’s Xinjiang province

Erik PrinceA security firm founded by Erik Prince, the former boss of the private military company Blackwater, has announced a deal with the Chinese state to operate a training facility in China’s largely Muslim Xinjiang province. In the months following the United States invasion of Iraq, Blackwater was hired by the Department of State to provide diplomatic security at several locations throughout the Middle Eastern country. By 2010, when the company was abruptly sold to a group of private investors, its tactics in Iraq had prompted international controversy. Prince went on to help found Frontier Services Group (FSG), another private security firm registered in Hong Kong. The company provides security training to personnel working for Chinese companies. Its specialization is training personnel of Chinese firms based abroad, mainly in regions of Africa.

The announcement of the new training center was posted on the FSG’s Chinese-language website. It said that one of FSG’s subsidiaries had struck an agreement to build and operate a “training center” at the Kashgar Caohu industrial park in the city of Kashgar, one of China’s westernmost cities, situated near the country’s border with Tajikistan, Pakistan, Afghanistan and Kyrgyzstan. The city of 1 million people is located in the province of Xinjiang. In recent months, Beijing has been heavily criticized by several Western countries for allegedly carrying out mass detentions of Uighur Muslims, which make up about half of Xinjiang’s population. Uighurs are ethnically related to the peoples of Central Asia and speak a Turkic dialect. Some see the Chinese state as an occupier and advocate secession, often combined with calls to create an Islamic caliphate. China denies the allegations of mass detentions and claims that Uighurs are voluntarily enrolled in “educational and training facilities”, where they are de-radicalized through political and cultural instruction. Up to a million Uighurs are believed to have been enrolled in these facilities in the past year.

It is worth noting that the initial announcement of the Kashgar Caohu training center agreement between FSG and its Chinese client was eventually deleted from the company’s website. Late last week, an FSG spokesperson told several news agencies, including Reuters, that Prince was not involved in what was described in a statement as a “preliminary agreement” for a training center in Xinjiang. The spokesperson added that Prince probably had “no involvement whatsoever” in the agreement.

Author: Joseph Fitsanakis | Date: 5 February 2019 | Permalink

Huawei fires Chinese employee arrested in Poland for spying

Huawei PolandThe Chinese telecommunications giant Huawei has fired one of its employees who was arrested last week in Poland on charges of spying for China, saying that his actions had “no relation to the company”. The man, identified in media reports as Wang Weijing, was arrested last Tuesday by Polish counterintelligence officers who conducted searches of Huawei’s offices in Warsaw and seized electronic hardware and documents. Wang reportedly learned Polish at the Beijing Foreign Studies University. In 2006, he was posted by the Chinese Ministry of Foreign Affairs at the Chinese consulate in Gdansk, Poland’s largest Baltic Sea port city. In 2011, he left the Foreign Service and joined Huawei, which employed him at its offices in Poland.

Reports from Poland said that Wang was arrested alongside a Polish national, who was identified in media reports only as Piotr D. He is believed to be a mid-level executive of Orange, a French multinational telecommunications carrier who is Huawei’s main domestic partner in Poland. Polish media also reported that, prior to joining Orange, Piotr D. was an upper-level manager in an unnamed Polish intelligence agency. Piotr D.’s house was searched by security officers on Tuesday, along with Wang’s house. The two arrests came six weeks after Meng Wanzhou, Huawei’s chief financial officer, was arrested in Canada. Meng, who is also the daughter of Huawei’s founder, was reportedly detained on December 1 in Vancouver at the request of the United States. Washington says it has evidence that Meng “tried to evade the American embargo against Iran”.

Over the weekend, Poland’s Internal Affairs Minister, Joachim Brudzinski, said that the European Union and the North Atlantic Treaty Organization —of which Poland is a member— should develop a joint position on whether to continue to allow Huawei to operate in Europe. But his call was reportedly met with a lukewarm response from government and private-sector leaders. Meanwhile, China’s Ministry of Foreign Affairs said that it was concerned about Wang’s arrest and urged Warsaw to treat him “with fairness”.

Author: Joseph Fitsanakis | Date: 14 January 2019 | Permalink

China seeks clarification over alleged spy equipment ordered by US embassies

US embassy Berlin GermanyThe Chinese government says it is seeking explanations from Washington after a leaked procurement database showed that American embassies purchased data forensics software and various tactical spy equipment. The purported database was published on December 21 by the international anti-secrecy website WikiLeaks, founded by Julian Assange, who is accused by some in the United States of having violated its espionage laws. WikiLeaks has dubbed the database the “US Embassy Shopping List” and says that it contains over 16,000 procurement requests from officials at American embassies located all over the world.

Most procurement requests included in the WikiLeaks database appear to be for commonplace items or services, such as passenger transportation, heating oil, outdoor freezers, or garage gates maintenance and repair. But there are some requests for so-called “tactical spy equipment”, such as those ordered by the US embassies in Colombia and El Salvador. These appear to be for miniature surveillance cameras hidden into everyday objects, such as buttons, baseball caps, watches and ties. Nearly 100 such items were requested for procurement by the US embassy in San Salvador. Several embassies ordered hardware and software for forensic examination of mobile phones. For example, the US embassy in Yerevan, Armenia, ordered a “Cell Phone Analyzer”, which allows users to access data from cell phones while bypassing security measures such as passwords. Similar devices were ordered by the US embassies in Berlin (pictured), and Kiev, capital of Ukraine, where fears were expressed on Monday about a possible military action by Russian troops during the holidays.

On Monday, China’s Ministry of Foreign Affairs said it was seeking “clarifications” from Washington about the documents made public by WikiLeaks. Speaking to reporters in Beijing, Ministry spokesman Hua Chunying said that the US owed “the rest of the world an explanation […] for what has recently been revealed by WikiLeaks”. Chunying also spoke about prior WikiLeaks revelations, including the so-called “PRISM-gate” in 2013, which revealed extensive intelligence-collection activities by the US on numerous countries, including some if its allies, such as Germany and France. She went on to ask, “why do American embassies buy so much secret surveillance equipment?”. Authorities in Washington had made no comment on the WikiLeaks revelation as of Tuesday morning.

Author: Ian Allen | Date: 25 December 2018 | Permalink

Cyber spies accessed thousands of European Union diplomatic cables

European Commission buildingA group of hackers, allegedly working for the Chinese military, accessed thousands of classified diplomatic cables from the European Union during a protracted cyber-espionage operation, a report has revealed. Over 100 organizations are believed to have been targeted in the multi-year cyber-espionage campaign, including the United Nations, international labor groups, as well as government ministries from dozens of countries. The operation was revealed on Tuesday by Area 1, a cyber-security company founded by former officials of the United States National Security Agency, and reported by The New York Times.

The compromised cables come primarily from the European Union’s COREU communication network, a Telex-based network that uses teleprinters to exchange text-based messages. The European Union uses the COREU network to transmit information that is classified “limited” or “restricted” between officials representing the executive governments of the European Union’s member states, members of the European Commission, foreign-ministry officials, and other approved parties. Top-secret information (“tres secret” in European Union parlance) is typically not shared on the COREU network. Consequently, the hacked cables contain mostly low-level information. That does not mean, however, that their access by at least one adversary power does not represent a serious security breach. Area 1 said that its forensic examination of the method used by the hackers reveals a set of cyber-espionage techniques that are closely associated with the Chinese People’s Liberation Army (PLA). These clues, in association with the PLA’s long history of attacking Western diplomatic targets, point to Beijing as a very likely culprit behind the attacks, according to Area 1.

The American cyber-security firm said it was able to access the compromised European Union cables and made over 1,100 of them available to The New York Times. The paper reported on Tuesday that the cables reflect increasing tension between Brussels and Washington, as European Union diplomats attempt to get a handle on the unpredictability of United States President Donald Trump. A series of diplomatic cables discusses the whether the European Union should bypass the White House and work directly with the Republican-controlled US Congress, which is viewed as more reliable and responsible. Another set of diplomatic exchanges describes the frustration of the Beijing’s leadership with Trump, which Chinese President Xi Jinping is said to have described to European Union officials as “a bully [engaged in a] no-rules freestyle boxing match”.

The Times said that it notified the European Union of the breach of its diplomatic cables and was told that officials were “aware of allegations regarding a potential leak of sensitive information and [were] actively investigating the issue”. The paper also contacted the White House National Security Council but did not get a response.

Author: Ian Allen | Date: 20 December 2018 | Permalink