Tradecraft observations on the Reichenbach/Fischer espionage case

May 3, 2024 by 3 Comments

Germany ReichstagSEVERAL CASES OF CHINESE espionage have been announced recently in Europe. Thomas Reichenbach and Herwig and Ina Fischer —a married couple— were arrested on April 22, 2024, for illegal exports of dual use technology with military (naval) applications.

Reichenbach lists himself as a contract marketing manager for the Hong Kong Trade Development Council. He studied at Peking University in the mid-1980s. He worked in China, speaks Mandarin, and has a Chinese wife.

Herwig and Ina Fischer own a small engineering consulting company named Innovative Dragon in Duesseldorf. Both have travelled extensively in China. Innovative Dragon contracts for technical research with universities. Herwig studied mechanical engineering and aircraft and spacecraft construction at the Rhine-Westphalia Higher Technical School, focusing on guidance technology and composite fiber materials. The company headquarters are in London and there are offices in Duesseldorf and Shanghai (Donghua University Science and Technology Park). The London office does not appear to have a functioning telephone number.

Reichenbach is suspected of having been recruited by the Ministry of State Security (MSS) in China. The German government has accused the trio of having illegally exported dual use technology since at least 2022. At the time of the arrests, the suspects were in negotiations on additional research projects useful for expanding the combat strength of the Chinese People’s Liberation Army Navy.

Status: Alleged

Tradecraft observations:

  1. Use of a potential front company in London to facilitate allegedly illegal exports.
  2. Use of third countries to facilitate allegedly illegal exports.
  3. Reichenbach allegedly recruited Herwig and Ina Fischer and handled them as in-country assets.
  4. It is alleged that the MSS probably recruited Reichenbach in China.
  5. An MSS officer allegedly handled Reichenbach from China (linear control).
  6. The MSS allegedly funded the operation through front companies.

► Author: Nicholas Eftimiades* | Date: 03 May 2024 | Permalink

* Nicholas Eftimiades is a Senior Fellow at the Atlantic Council. He retired from a 34-year government career that included employment in the United States Central Intelligence Agency, the Department of State, and the Defense Intelligence Agency. He held appointments on the Department of Defense’s Defense Science Board and the Economic Security Subcommittee of the Department of Homeland Security’s Homeland Security Advisory Council. He is an advisor to the United States Intelligence Community. Eftimiades authored numerous works on China’s espionage methods. His books, Chinese Intelligence Operations (1994) and Chinese Espionage: Operations and Tactics (2020) are examinations of the structure, operations, and methodology of China’s intelligence services. They are widely regarded as seminal works in the field.

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Chinese government arrests second alleged CIA spy in 10 days

August 23, 2023 by Leave a comment

Chinese Ministry of State SecurityFOR THE SECOND TIME in 10 days, the government of China has announced the arrest of a Chinese government employee on suspicion of spying for the United States Central Intelligence Agency (CIA). In a statement issued on Monday, China’s civilian intelligence agency, the Ministry of State Security (MSS), said it had launched an investigation into an official of a government ministry, who was allegedly caught conducting espionage on behalf of the CIA.

The MSS statement did not name the government ministry where the alleged spy works. But it identified the accused by his surname, Hao, describing him as a 39-year-old Chinese national. According to the MSS statement, Hao spent a number of years as a graduate student in Japan. While he was studying in Japan, he allegedly visited the United States embassy in Tokyo, in order to apply for a travel visa. During his visit to the embassy, he met a United States embassy official, who befriended him.

Over time, Hao allegedly formed a close relationship with the unnamed American embassy official. The latter treated him to meals, sent him gifts in the mail, and secured funds for him to conduct research. Eventually, the embassy official introduced Hao to another American official, who, according to the MSS, was a CIA case officer. The CIA case officer allegedly recruited Hao to spy for the United States and instructed him to seek employment at “a core and critical department” of the government upon his return to China.

After completing his studies in Japan, Hao returned to China and secured employment in a government agency. He continued to meet regularly with his alleged CIA handler and other CIA officers, who to whom he “provided intelligence” in return for “espionage funds”, according to the MSS statement. The statement said that Hao’s case remains under investigation and that no official charges have yet been filed.

The MSS statement about Hao’s case came exactly 10 days after the spy agency posted on its WeChat social media account that it had caught another government official spying for the CIA. On August 11, the MSS said it had detained an alleged CIA spy named Zeng, whom it described as a 52-year-old “staff member of a Chinese military industrial group and an important confidential employee” of the Chinese state. Zeng had reportedly been sent to Italy by his employer, presumably in order to pursue graduate studies or receive technical training. While in there, he was allegedly accosted and eventually recruited by an employee of the United States embassy in Rome.

It is not known if the two cases are in any way connected. Government officials in Washington and at the United States embassy in Beijing have not commented on the story.

► Author: Joseph Fitsanakis | Date: 23 August 2023 | Permalink

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China arrests government worker who gave CIA ‘core information’ about military

August 14, 2023 by 1 Comment

US embassy Rome ItalyA CHINESE GOVERNMENT EMPLOYEE gave “core information” about China’s military to the United States, after he was recruited by a Central Intelligence Agency (CIA) officer in Italy, a Chinese state agency has said. The allegation was made in a statement that was issued on Friday by China’s civilian intelligence agency, the Ministry of State Security (MSS), on its WeChat social media account.

The MSS statement did not specify the period during which the alleged espionage took place. But it named the alleged spy as “Zeng” and described him as a 52-year-old “staff member of a Chinese military industrial group and an important confidential employee” of the Chinese state. According to China’s state-owned newspaper The Global Times, Zeng had been sent to Italy by his employer, presumably in order to pursue graduate studies or receive technical training. While in Italy, Zeng was allegedly accosted by an employee of the United States embassy in Rome, which the MSS identified as “Seth”.

According to the MSS, Seth was a CIA case officer, who befriended Zeng through “dinner parties, outings and trips to the opera”. The Chinese man “developed a psychological dependence” on Seth and was “indoctrinated” by him “with Western values”, the MSS statement claims. Seth eventually convinced Zeng to sign an agreement with the CIA to conduct espionage, after which the Chinese man allegedly received intelligence tradecraft training. Upon returning to China from his stay in Italy, Zeng is alleged to have carried out espionage on behalf of his CIA handlers. The MSS claims Zeng gave his CIA handlers “a great amount of core intelligence” during “multiple secret meetings” with them.

The information Zeng is alleged to have provided to the CIA concerned “key developments about China’s military” to which he had access through his employer. In exchange for this information, Zeng is accused of having received “a huge amount of [financial] compensation” by his CIA handlers. The latter also promised him that they would help his family emigrate to the United States, as per the MSS statement. The spy agency said that Zeng remains in detention while the case is under investigation. The MSS statement also warned other Chinese citizens living or traveling abroad of “the risks and perils” of recruitment by Western spy agencies.

The Reuters news agency said it contacted the United States embassy in Beijing about the MSS allegations, but received no response.

► Author: Joseph Fitsanakis | Date: 14 August 2023 | Permalink

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China’s intelligence modernization has outpaced military increases: British report

August 9, 2023 by 4 Comments

Chinese Ministry of State SecurityTHE MODERNIZATION OF CHINA’S intelligence community is without parallel in recent history and has even outpaced the funding increases given to the Chinese military, a British government report has concluded. According to the same report, the Chinese government spends more on what it perceives as domestic threats than on external targets involving Western countries and their allies.

The redacted version of the report was issued last month by the British Parliament’s Intelligence and Security Committee, which monitors the activities of the British intelligence community. It concentrates on China’s domestic and global ambitions and discusses the role of the Chinese intelligence services in these pursuits. A theme that permeates the 222-page report is that China’s domestic and international ambitions are interconnected, as Beijing does not distinguish between its key national interests in the domestic and foreign domains. Moreover, the report notes that the Chinese intelligence community plays a central role in both facets.

The report notes that China “almost certainly maintains the largest state intelligence apparatus in the world”, dwarfing those of its Western rivals. The latter are forced to concentrate their counterintelligence work “on those aspects that are most demanding”. The official Chinese intelligence agencies are three, the report notes; they consist of the Ministry of State Security and the Ministry of Pubic Security —both of which are civilian— as well as the Strategic Support Force of the Chinese People’s Liberation Army. The latter provides signals intelligence support, whereas the two civilian agencies carry out a host of intelligence and counterintelligence duties.

Nevertheless, the Chinese state’s “whole-of-government” approach on matters of security means that almost every government agency fulfils some type of intelligence-related role. This makes it difficult to calculate with accuracy the full extent of the Chinese intelligence apparatus, the report notes.

Notably, Chinese intelligence agencies are focused primarily on what the Chinese government perceives as domestic threats to its rule, which Beijing has termed “the five poisons”. According to the report, these consist of: the Taiwanese independence movement; the separatist movements in Tibet and Xinjiang; the Falun Gong religious movement; and pro-democracy activism inside China. Intelligence collection and other operations that relate to the so-called “five poisons” include intelligence activities that take place abroad and target Chinese expatriate communities.

It is also worth noting that, according to the report, Beijing spends “almost 20% more on domestic security than on external defence”. Moreover, the rise in expenditures for intelligence infrastructure and operations is impressive by any standards of assessment and “has outpaced even China’s recent dramatic military modernization” of recent years, the report notes. The increase in spending “appears to have led to an improvement in capability”, the report concludes.

► Author: Joseph Fitsanakis | Date: 09 August 2023 | Permalink

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US arrests two over alleged clandestine Chinese police station in New York City

April 18, 2023 by 2 Comments

Chinese Ministry of State SecurityTHE UNITED STATES HAS arrested two residents of New York City for allegedly conspiring to create and operate a clandestine police station run by the Chinese government in the borough of Manhattan. The arrests come a month after authorities in Canada launched an investigation into allegations that the Chinese government was running at least two clandestine police stations in Montreal and four more in Toronto.

The allegations first surfaced in a 2022 report by Safeguard Defenders, a Spanish-based non-government organization that focuses on the state of human rights in China. The report, titled “110 Overseas: Chinese Transnational Policing Gone Wild”, claimed that China’s Ministry of Public Security, in association with Chinese diplomatic facilities around the world, operated dozens of clandestine police stations in over 50 countries. Their official mission, according to the report, was to service the needs of Chinese citizens living abroad, as well as visitors from China. However, these clandestine police stations were “actively […] engaging in covert and illegal policing operations” targeting Chinese citizens and expatriates, according to Safeguard Defenders.

On Monday, two New York City residents, Chen Jinping, 59, and Lu Jianwang, 61, were arrested and charged with conspiring to operate as unregistered agents of the People’s Republic of China. They were also charged with obstruction of justice in connection with the Department of Justice’s investigation into their activities. United States government prosecutors allege that Chen and Lu were behind the establishment of a clandestine police station in Manhattan. According to the indictment, the Manhattan police station —the first of its kind in the United States— was operated by China’s Ministry of State Security (MSS). It is reported that the station was shut down by the MSS in late 2022, soon after Chinese officials became aware of an investigation into the activities of the station by the United States Federal Bureau of Investigation.

A representative of the United States prosecutor accused the Chinese government of engaging in a “flagrant violation” of American sovereignty with “actions that go far beyond the bounds of acceptable nation-state conduct”. Meanwhile, Chen and Lu appeared before a federal judge in Brooklyn on Monday. They face up to 25 years in prison if convicted.

► Author: Joseph Fitsanakis | Date: 18 April 2023 | Permalink

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US indicts five members of Chinese spy ring, handler remains at large

March 17, 2022 by 1 Comment

Chinese Ministry of State SecurityAUTHORITIES IN THE UNITED States have indicted five members of an alleged spy ring for the Chinese Ministry for State Security (MSS), who engaged in sabotage, bribing, harassment, intimidation and entrapment operations. The Federal Bureau of Investigation (FBI) alleges [PDF]  that the five men, Qiming Lin, 59, Shujun Wang, 73, Quiang ‘Jason’ Sun, 40, Matthew Ziburis, 49, and Fan ‘Frank’ Liu, 62, operated at the behest of the government of China, conducting several operations on US soil, with an “unlimited budget”.

Lin, Wang, Liu and Ziburis have been arrested. They each face between 10 and 20 years in prison, if convicted. Sun, who is the alleged handler of the spy ring, remains at large. The FBI claims Sun is an MSS officer and is currently in China. The FBI alleges that the five men were tasked with destroying the personal lives and careers of Chinese dissidents living in the United States. Their victims included a Chinese-born American citizen, who is running for Congress. The dissident is not identified in the FBI indictment. However, according to the Business Insider, he is believed to be Yan Xiong, a Long Island resident who escaped to the US after participating in the 1989 Tiananmen Square demonstrations.

Members of the Chinese spy ring allegedly tried to thwart Yan’s Congressional election campaign. Specifically, they are accused of conspiring to extort Yan, by luring him in a ‘honey trap’ operation involving prostitutes. They also conspired to plant child pornography in Yan’s personal computer, and even using physical beatings and intimidation in order to subvert his political career. The spy ring is also believed to have targeted Weiming Chen, a Chinese-born, California-based artist, who has produced sculptures and other artwork critical of the Chinese government.

In most cases, members of the spy ring tried to acquire personal data belonging to their victims, including their US social security numbers, as well as copies of their passports. In several cases, members of the spy ring installed covert surveillance equipment in the cars, residences and work places of their targets. These allowed them to monitor their victims’ personal lives and whereabouts. In announcing the indictments on Wednesday, US Department of Justice representatives said efforts by Chinese spies to intimidate and silence expatriate dissidents living in the US had risen at an “alarming rate” in the past year.

► Author: Joseph Fitsanakis | Date: 17 March 2022 | Permalink

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Chinese officials reward fishing crews for finding underwater spy devices

January 19, 2022 by 2 Comments

Jiangsu ChinaGOVERNMENT OFFICIALS IN THE Chinese province of Jiangsu have publicly rewarded two fishing crews for finding and turning in to security authorities a number of “suspicious” underwater devices. In a leading article on its website, China’s state-owned Xinhua news agency said on Tuesday that other fishing crews should come forward upon finding similar devices, to prove their patriotism and claim financial rewards from the state.

Tuesday’s rewards were handed out by state officials in Jiangsu, a largely coastal region in China’s east. It is located north of Shanghai and is among the most densely populated provinces in the country. According to Xinhua, local officials held a “Special Commendation and Reward Symposium for Coastal National Security and People’s Defense Lines”. During the ceremony, state officials reportedly commended and rewarded 11 fishing crew members and 5 land-based personnel for “salvaging and turning over” a number of “suspicious underwater” devices. The latter were described in the article as “reconnaissance devices” that had been “secretly deployed by foreign countries” in China’s territorial waters.

The report relayed an incident that prompted the initial discovery of a “device shaped like a torpedo”. The latter was collected by a member of a fishing crew and turned over to the Ministry of State Security (MSS). The device was reportedly found to pose “a national security risk”, as it had likely been deployed by “a new type of marine unmanned underwater vehicle, developed by a major country”. This alleged underwater vehicle is said to deploy reconnaissance devices that “can measure hydrological data and environmental parameters around China’s coasts”, according to the report. The report did not specify the name of the “major country” that is allegedly behind these devices.

The Xinhua report said that fishing crews in Jiangsu have found 10 underwater surveillance devices since 2020, and included a photograph of a display containing images of some of these devices. It claimed all were “foreign made”. The report concluded by congratulating the fishing crews for turning in the devices to the MSS, and urging more fishing crews to come forward with similar discoveries, so as to claim sizeable monetary awards and receive public commendations.

► Author: Joseph Fitsanakis | Date: 19 January 2022 | Permalink

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Recent conviction of Chinese spy in a US court could be game changer, say insiders

November 16, 2021 by 3 Comments

Chinese Ministry of State Security

THE RECENT CONVICTION OF a Chinese intelligence officer for espionage in a United States court could be a “seminal moment” for American counterintelligence, according to several former intelligence professionals. They spoke to The Daily Beast’s Shannon Vavra about the case of Yanjun Xu, who is also known as Qu Hui or Zhang Hui. As intelNews and others reported last month, Xu is a deputy division director in the Ministry of State Security (MSS) —China’s intelligence agency.

Xu was arrested by Belgian police in April 2018, while attempting to meet an employee of GE Aviation, a subsidiary of General Electric, whom he had allegedly tried to recruit at an academic conference in China in 2017. The Belgians extradited Xu to the United States, where he was indicted by a federal grand jury for conspiring to commit acts of economic espionage against GE Aviation. During the trial, which took place in Cincinnati, prosecutors successfully made the case that Xu’s espionage activities were part of a broader 10-year plan by the MSS to spy on aviation manufacturers around the world.

Xu’s extradition marked the first time that an employee of a Chinese intelligence agency was tried on American soil. His conviction could be a game changer, says to Bill Evanina, who was director of the United States National Counterintelligence and Security Center until earlier this year. Evanina told The Daily Beast that the case against Xu will almost certainly serve as a “legal template for future cases” by the United States government against Chinese espionage. Evanina’s view was echoed by Jim Olson, former Chief of Counterintelligence for the Central Intelligence Agency. He told The Daily Beast that Xu’s arrest, extradition and conviction “is a huge shakeup for the MSS” and its impact on how China conducts its espionage operations against the United States will be “tremendous”.

Meanwhile China has rejected all accusations against Xu. Liu Pengyu, spokesman for China’s embassy in the United States, told The Daily Beast that the charges against Xu were “pure fabrications”. He added that the Chinese state demands that Washington handles Xu’s case “according to the law and in a just manner”, so that this Chinese citizen’s “rights and interests” would be ensured.

► Author: Joseph Fitsanakis | Date: 16 November 2021 | Permalink

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Unusual trial of alleged Chinese state intelligence officer begins in the United States

October 27, 2021 by Leave a comment

General Electric

AN UNUSUAL TRIAL OF an alleged Chinese spy is taking place in the United States, which observers say marks the first time that an employee of a Chinese intelligence agency is being tried on American soil. The court case centers on Yanjun Xu, also known as Qu Hui or Zhang Hui. According to prosecutors, Xu is a deputy division director in the Ministry of State Security (MSS) —China’s intelligence agency.

Xu was arrested by Belgian police in April 2018 and was eventually extradited to the US. Following his extradition, he was indicted by a federal grand jury for conspiring to commit acts of economic espionage against GE Aviation, a subsidiary of General Electric, which is headquartered in the US state of Ohio. Throughout the trial, which began last week at a District Court in the city of Cincinnati, prosecutors have been making the case that Xu’s espionage activities were part of a broader plan by the MSS to spy on aviation manufacturers around the world. The alleged espionage campaign has been taking place since at least 2013, say the prosecutors.

According to the prosecutors, the purpose of the MSS’ espionage campaign is to reverse-engineer GE Aviation’s advanced gas turbine engine, which, according to one witness who testified at the trial, Beijing has been trying to steal for many years. Among other activities, Xu is accused of having tried to pay off employees of aviation contractors, in return for access to proprietary blueprints of engines and other components. In other cases, computer viruses were used in efforts to compromise secrets. In one alleged example, a project manager with French aviation manufacturer Safran testified this week that his laptop computer was infected with a malware during a 2014 business trip to China.

The trial is expected to last until the middle of November.

► Author: Joseph Fitsanakis | Date: 27 October 2021 | Permalink

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Britain quietly expelled three Chinese spies posing as journalists, report claims

February 5, 2021 by 1 Comment

CGTN ChinaTHREE CHINESE NON-OFFICIAL cover intelligence officers, who were working in London under journalistic cover, were expelled from Britain in the past year, according to a new report. The claim was made on Thursday by The Telegraph newspaper, which cited an anonymous “government source”. The report alleges that the three expelled Chinese journalists were in fact employees of China’s Ministry of State Security.

The paper said that the three Chinese citizens were working as journalists for three different Chinese press agencies and media outlets. However, Britain’s counterintelligence agency, the Security Service (known also as MI5), allegedly uncovered the true identities of the spies, according to The Telegraph. They were then reportedly ordered by the British government to leave the country. The report did not provide details about when precisely the three Chinese citizens were expelled, saying only that the expulsions occurred at different times during the past year.

In a separate development, the British government yesterday rescinded the broadcast license of China’s television station, China Global Television Network (CGTN). The move followed an investigation by the Office of Communications (known as Ofcom), an independent government authority that regulates Britain’s broadcasting, postal and telecommunications industries. The decision marks a major setback for CGTN, which employs hundreds of reporters and considers London as one of its three major worldwide bases.

In a statement explaining its decision, Ofcom said that its investigators had concluded that CGTN was not editorially independent from the Chinese Communist Party. This meant, according to Ofcom, that the Chinese broadcaster was effectively an arm of the Chinese state. British law does not permit media entities that are controlled by governments to hold broadcasting licenses. It is believed that CGTN will now try to receive a license to broadcast by another European country.

► Author: Joseph Fitsanakis | Date: 05 February 2021 | Permalink

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Afghans expel 10 Chinese spies who allegedly made contact with pro-Taliban group

January 5, 2021 by 2 Comments

The Afghan government reportedly expelled from the country 10 Chinese intelligence officers on Saturday, after they were found to have contacts with pro-Taliban groups. Meanwhile the White House was recently briefed about claims that Beijing offered Afghan militants bounties for killing American soldiers.

Several Indian news agencies reported last month that Afghanistan’s National Directorate of Security (NDS) arrested 10 Chinese nationals in Kabul on December 10, on suspicion of espionage. The 10 Chinese included at least one woman, and were believed to work for the Ministry of State Security (MSS), China’s primary intelligence agency.

According to reports in the Indian press, the Chinese nationals had used Kabul as a base to buld a fictitious chapter of the East Turkestan Islamic Movement (ETIM). Based in China’s heavily Muslim Xinjiang Province, ETIM is a sepratist armed group, which seeks to create an Islamic breakaway state for ethnic Uighurs. The purpose of the ruse was reportedly to entrap ETIM supporters and members who were operating in Afghanistan.

It is also alleged that at least two of the Chinese spies had contacts with the Haqqani network, a militant group that has pledged allegiance to the leadership of the Taliban, but maintains an independent command structure. Indian news networks named the two Chinese alleged spies with Haqqani Network contacts as Li Yangyang and Sha Hung. Interestingly, the arrests of the 10 Chinese nationals took place shortly before United States President Donald Trump was reportedly briefed about contacts between the MSS and pro-Taliban groups in Afghanistan. According to Axios, US intelligence agencies told the president that Chinese spies had offered Afghan militants bounty in exchange for killing American troops.

Citing “diplomats and security officials in Kabul” who are “familiar with the matter”, The Hindustan Times reported on Monday that the ten Chinese nationals had been released after 23 days in detention. They boarded a chartered airplane heading for China on Saturday, said the paper. None were formally charged. Their release was reportedly ordered by Afghan President Ashraf Ghani, following direct negotiations with Beijing.

► Author: Joseph Fitsanakis | Date: 05 January 2021 | Permalink

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

October 1, 2019 by 4 Comments

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

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Senior anti-corruption official to lead China’s main spy organization

November 8, 2016 by 1 Comment

Chen WenqingA senior Chinese official with a leading role in the country’s ongoing anti-corruption crusade has been appointed head of the nation’s spy agency, which has undergone extensive purges in recent years. Chen Wenqing, 56, will be replacing Geng Huichang as Minister of State Security. Geng, 65, will be retiring after nearly a decade at the helm of China’s intelligence and security agency, which is responsible for intelligence collection, counterintelligence and political security. Chen’s appointment was approved on Monday by the Standing Committee of the National People’s Congress. It comes a year after he was appointed as the senior Communist Party representative at the Ministry of State Security.

Chen, a native of China’s southwestern Sichuan province, joined the police force at a young age and rose through the ranks to become the local director of the Ministry of State Security’s local field office. After eight years in that post, he was appointed provincial director of the Central Commission for Discipline Inspection (CCDI), the Communist Party’s agency responsible for combating corruption among Party apparatchiks. In 2012, Chen became the youngest-ever deputy director of the CCDI, working under the commission’s chairman, Wang Qishan. From that post, Chen helped lead a massive anti-corruption campaign that resulted in the purging of over 100 senior Communist Party officials on charges of dishonesty and sleaze. Those purged included several senior officials at Ministry of State Security. Among them was Zhou Yongkang, Secretary of China’s Central Political and Legal Affairs Commission, which oversees the country’s security, intelligence and law enforcement institutions. The crackdown also targeted the deputy director of the Ministry of State Security, Ma Jian, and its once-powerful Beijing director, Liang Ke.

In recent years, several officials from the CCDI, who are seen by many as uncorrupted and incorruptible, have filled the positions of former Ministry of State Security bureaucrats who were fired during the government’s anti-corruption campaign. Chens’ appointment makes him the third senior CCDI official to be appointed to a senior post in the Ministry of State Security. Some experts believe that Chen’s move affirms the growing power of the CCDI, which has been the main implementation vehicle of President Xi Jinping’s ongoing anticorruption campaign that has gripped China since his rise to power in 2012.

► Author: Joseph Fitsanakis | Date: 08 November 2016 | Permalink

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China and Taiwan swap jailed spies in historic first

December 1, 2015 by Leave a comment

Ma Ying-jeou and Xi JinpingChina and Taiwan reportedly swapped each other’s imprisoned spies, just days before a historic meeting between their heads of government. It was the first time in the two nations’ history that they have swapped jailed spies with each other. The exchange appears to have taken place in secret in late October, less than two weeks ahead of a historic November 7 meeting between Chinese President Xi Jinping and Taiwanese President Ma Ying-jeou. The meeting, which took place in Singapore, was hailed for its historic significance, as it was the first of its kind since 1949, when the two countries emerged following a bitter civil war between communist and nationalist forces.

News of the spy exchange emerged in the Taiwanese press on Monday, when it was reported that Taipei had released Li Zhihao. Li, a mysterious Chinese intelligence officer known in spy circles as “the man in black”, had been arrested in 1999 after being lured into Taiwan, and was serving a life sentence. He is believed to be 70 years old. In return, Beijing appears to have freed Chu Kung-hsun and Hsu Chang-kuo, two colonels in Taiwan’s Military Information Bureau, who were arrested by mainland China’s counterintelligence nearly a decade ago. At the time of their arrest, the Taiwanese government protested that the two officers had been kidnapped from the Vietnamese side of the Chinese-Vietnamese border. But Beijing had dismissed Taipei’s protestations and had convicted the two men of espionage.

It is worth pointing out that the two Taiwanese officials had initially been sentenced to death, but their sentences were later commuted to 20 years behind bars. It is believed that they were the last Taiwanese military officials held in China for espionage, and that they were the highest-ranked Taiwanese spies imprisoned in China. Their release, therefore, marks an unprecedented development in Chinese-Taiwanese relations, though it should be remembered that dozens of Taiwanese civilians are held in Chinese jails on espionage charges.

► Author: Joseph Fitsanakis | Date: 01 December 2015 | Permalink

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US warns China against use of non-official-cover operatives

August 17, 2015 by Leave a comment

Chinese Ministry of State SecurityThe White House has warned the Chinese government to stop deploying on American soil intelligence operatives masquerading as tourists, business executives or other false covers. Nowadays the standard practice for intelligence personnel deployed abroad is to be posted as diplomatic staff in a foreign embassy or consulate. But there are some intelligence officers who do not follow that practice. These are known as non-official-cover operatives, or NOCs in American intelligence parlance. NOCs are typically high-level principal agents or officers of an intelligence agency, who operate without official connection to the diplomatic authorities of the country that is employing them. They typically pose as business executives, students, academics, journalists, or non-profit agency workers. Unlike official-cover officers, who are protected by diplomatic immunity, NOCs have no such protection. If arrested by authorities of their host country, they can be tried and convicted for operating as unregistered agents of a foreign government.

According to The New York Times, a significant number of Chinese NOCs have recently entered the United States as part of the Chinese government’s Operation FOX HUNT. Supervised by China’s Ministry of State Security (MSS), FOX HUNT is aimed at the thousands of former officials and other fugitives from China, who are alleged to have embezzled funds and are now living abroad, usually in considerable wealth. As part of the MSS operation, teams of intelligence agents are said to have been dispatched around the world in order to hunt down these fugitives, many of whom are believed to have embezzled hundreds of millions of dollars in government funds. Chinese media reports claim that nearly 1000 such fugitives have been “repatriated”, either voluntarily or involuntarily, since the launch of FOX HUNT. The tactics used by the Chinese NOCs are not clear, and some suspect that they include direct or indirect threats against the fugitives’ family members in China. Chinese reports have described FOX HUNT operatives as “mostly young, highly skilled”, and accustomed to “rapid-fire deployment” around the world.

The Times said that Washington views the parts of Operation FOX HUNT that take place on US soil as “a departure from the routine practice of secret government intelligence gathering” that both America and China practice against each other. The US, therefore, does not want Chinese officers without official diplomatic credentials, but posing instead as students, tourists or business representatives, engaging in intelligence operations on US soil, said the paper. It added that Washington’s warning had been delivered to Beijing “in recent weeks”. The Times article did not include specific descriptions of FOX RUN activities on American soil.

► Author: Joseph Fitsanakis | Date: 17 August 2015 | Permalink

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