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

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

Chinese officials reward fishing crews for finding underwater spy devices

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

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

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

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

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

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

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

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

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

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

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

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

China and Taiwan swap jailed spies in historic first

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

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

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

UK report warns about sexual entrapment by foreign spies

UK Ministry of DefenceBy IAN ALLEN | intelNews.org
A leaked report issued by military authorities in the United Kingdom cautions British officials to be aware of attempts by Chinese and Russian intelligence services to compromise them using sexual entrapment. The London-based Sunday Times newspaper said it had acquired a copy of the document, entitled Manual of Security, authored by the United Kingdom’s Ministry of Defence for use by senior officials. The manual warns that foreign intelligence services are known to employ sexual entrapment or romantic attachment as a means of compromising their targets. The document singles out the Russian Federal Security Service (FSB) and the Chinese Ministry of State Security as two adversary agencies that are known to employ sexual entrapment on a regular basis. British officials are warned in the document that the FSB could gain classified information by exploiting “knowledge of marital infidelity or sexual activity the target may wish to hide”. The Times spoke to an unidentified “senior military official”, who told the paper he was recently approached by “a very attractive blonde woman in her early 30s” in a hotel in the Russian city of Saint Petersburg. The woman began telling him of her fascination with vintage British sports cars, which happened to be the British official’s favorite hobby. He eventually terminated the encounter after he became suspicious of the woman’s motives. But he remains puzzled as to how the woman knew details of his personal hobbies. In 2009, the British Foreign Office had to recall its deputy consul-general in the Russian city of Ekaterinberg, after he appeared in an explicit video on YouTube having a sexual encounter with two Russian prostitutes. Many speculated at the time that the video had been posted online by the FSB in an attempt to embarrass the diplomat and have him removed from Russia. Later that year, London’s former deputy mayor, Ian Clement, admitted he was lured by a female Chinese secret agent, who drugged him and ransacked his Beijing hotel room after having sex with him. Clement said he fell for what he called “the oldest trick in the book” while in Beijing to “build contacts with potential investors” for the 2012 Summer Olympics in London. Sir Christopher Meyer, a career diplomat with the Foreign Office, who served in several countries during his career, including the Soviet Union, has written about the case of Sir Geoffrey Harrison, Britain’s ambassador to Moscow from 1965 to 1968. The ambassador, said Sir Christopher, “had to leave [the Soviet capital] in a hurry, having fallen for the charms of his Russian maid –trained and targeted, of course, by the KGB”. Read more of this post

CIA ‘seriously damaged’ China’s overseas spy network, sources say

Ministry of State Security branch office in Hubei Province, ChinaBy JOSEPH FITSANAKIS | intelNews.org |
A high-level Chinese security official, who was arrested earlier this year in China for spying for the United States, compromised several Chinese agents operating on American soil, according to sources. Reuters news agency, which broke the initial story of the Chinese official’s arrest earlier this month, published last week a lengthy update on the spy affair. The article quoted “two sources with direct knowledge on the matter”, who claimed the issue was considered serious enough in Beijing to prompt the personal intervention of Chinese President Hu Jintao. Jintao, who is also General Secretary of the Communist Party of China, personally ordered an investigation into the case, said Reuters. The investigation focused on China’s Ministry of State Security (MSS), China’s primary intelligence agency, where the accused spy was reportedly working at the time of his arrest. Although Chinese media have remained silent on the issue, the arrested official is said to have worked as a senior aide to MSS Vice Minister Lu Zhongwei. The Reuters article alleges that the investigation, which is said to be continuing, has concluded that the aide had been a paid informant of the US Central Intelligence Agency, and that the information he provided to the CIA included “political, economic and strategic intelligence”. But the sources also told Reuters that some of the government secrets that the MSS aide gave the CIA related to China’s network of spies operating on American soil. The latest Reuters article strengthens the widespread view that the latest espionage scandal caused serious damage to China’s espionage network in the US. Some observers now argue that this represents China’s most damaging espionage scandal since 1985, when Yu Qiangsheng, a senior Chinese intelligence official, defected to the United States. Read more of this post

US State Department silent on ‘massive’ China spy revelations

Hillary ClintonBy JOSEPH FITSANAKIS | intelNews.org |
The United States Secretary of State, Hillary Clinton, has declined to comment publicly on the arrest of a senior Chinese government aide, who is said to have conducted “massive” spying for Washington. According to Reuters news agency, who broke the story last week, the aide was arrested several months ago, but both the US and China have chosen to keep the issue under wraps in order “to prevent a fresh crisis in relations” between the two countries. Reuters cited “three sources [with] direct knowledge of the matter”, who said that the aide was employed at a critical post in the office of a vice minister in China’s Ministry of State Security (MSS). The MSS is China’s foremost intelligence agency, with responsibility for both domestic and international intelligence collection. According to the sources quoted by Reuters, the unnamed aide was arrested “sometime between January and March” of 2012 and stands accused of supplying his American handlers with classified information on Chinese espionage activities abroad. According to the report, the accused spy had been working for the US “for several years” and his case could represent the worst breach of China’s MSS in two decades; according to one source, the damage inflicted to the MSS’ operations by this case “has been massive”. Reuters said that the aide, who speaks English, was recruited by the US Central Intelligence Agency, and was paid “hundreds of thousands of US dollars” to provide “political, economic and strategic intelligence” to American intelligence officers. Read more of this post

News you may have missed #640

Amos Yadlin

Amos Yadlin

►►Chinese defector says Canada right to worry about spying. Li Fengzhi, a former intelligence officer for China’s Ministry of State Security, who defected to Canada in 2003, has told a conference that Canada should be concerned about relationships between senior politicians and journalists from China, saying Beijing is targeting lawmakers everywhere. He was referring to the case of senior Conservative MP Bob Dechert, who was enveloped by controversy in September over amorous e-mails he sent to Shi Rong, a Chinese government journalist based in Toronto. After the Dechert controversy broke, the journalist recalled to Beijing to meet with her superiors and has not returned to her Canadian posting.
►►More intel officials warn against airstrikes on Iran. Meir Dagan, the former head of Israeli spy agency Mossad, is not alone in warning against the possibility of Israeli attacks against Iran’s nuclear program. He has now been joined by Major General Amos Yadlin, who until recently headed Israel’s Military Intelligence directorate. Speaking at Israel’s Institute for National Security Studies, Yadlin doubted that airstrikes could threaten Iran’s numerous, distant and well-defended nuclear facilities. Another intelligence official, Saudi Arabia’s Prince Turki al-Faisal, also cautioned last week against any attacks on Iran, saying that “there are other non- military policy alternatives, as yet unexplored, that could have the desired result without the unwanted consequences”.
►►GCHQ challenges code breakers via social networks. Britain’s signals intelligence agency, the General Communications Headquarters, has launched a code cracking competition to help attract new talent. The organization has invited potential applicants to solve a visual code posted at an unbranded standalone website. The challenge will also be ‘seeded’ to social media sites, blogs and forums. A spokesman said the campaign aimed to raise the profile of GCHQ to an audience that would otherwise be difficult to reach.

US report links telecoms company to Chinese spy services

Sun Yafang

Sun Yafang

By JOSEPH FITSANAKIS | intelNews.org |
For the first time a United States government agency has openly linked one of China’s main telecommunications companies with the country’s intelligence services. The alleged link is provided in a new report by the US Open Source Center, which acts as the open-source intelligence (OSINT) arm of the Office of the Director of National Intelligence. The report concludes that the company, Huawei Technologies, relies on a series of formal and informal contacts with the Chinese People’s Liberation Army and the Ministry of State Security (MSS), which oversee and administer China’s military and civilian intelligence apparatus. Founded in 1987 to import Western office telephone systems to China, the company has become one of the country’s leading exporters of all kinds of communications hardware equipment, ranging from routers to cell towers and undersea cables. But Huawei’s export growth has been hampered in recent years by widely circulated suspicions that the company maintains close ties to the Chinese military and intelligence establishments. The Open Source Center report adds to these suspicions, by pointing out that Huawei’s current chairperson, Sun Yafang (pictured), was an employee of the MSS Communications Department prior to joining Huawei in 1989. It also says that, prior to joining the company, Sun utilized her personal contacts at MSS to “help Huawei through financial difficulties at critical moments when the company was founded in 1987”. The close contacts between the —ostensibly private— company and the Chinese government have persisted ever since, says the report, and points out that the Chinese state has funded Huawei with nearly a quarter-billion dollars for “research and development” projects in the past three years alone. This is not the first time that Huawei has been accused of maintaining close contacts with Chinese intelligence agencies. In 2009, the Australian Security Intelligence Organisation (ASIO) investigated one of Huawei’s Australian-based subsidiaries for links to Chinese intelligence operations. In the following year, the Indian government barred the company from operating in India, citing its allegedly “strong links with the Chinese military”. Read more of this post

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