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Thursday, April 5, 2018
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Catching a Chinese IP Thief: How the FBI Tracked and Caught Sinovel



Photo: Getty Images

For decades, Chinese firms have gotten away with stealing U.S. technology.

But on Jan. 24, 2018, a federal jury found Chinese wind turbine manufacturer Sinovel Wind Group Co. Ltd guilty of stealing the software of U.S. company AMSC, inflicting more than $800 million in damages. This landmark case was the first time a Chinese company had been charged and convicted of such crimes in a federal court.

Retired FBI agent Joshua Ben Mayers,
who was the sole agent handling the 7-year long investigation, tells the story—and asks what the U.S. government will do to deter future Chinese IP theft:
  • “This victory in court exposes a more difficult problem. Is the U.S. government willing to back the ruling with a meaningful deterrence strategy? In 2015, President Barack Obama signed an executive order instituting harsh sanctions against countries or individuals found responsible for significant malicious cyber-enabled crimes, including the theft of intellectual property.”
     
  • “President Donald Trump renewed this executive order in 2017, declaring these types of crimes a significant extraordinary threat to the national security, financial stability and economic health of the United States. But no specific action has been taken by the White House to hold China or Sinovel accountable for these crimes.”
     
  • “This is just one version of a story that has been repeated over and over in the past 20 years, to the accumulating detriment of American workers, companies, and the larger economy…The Sinovel case puts in stark relief the question: why is the U.S. government apparently doing nothing to correct this wrong?”



Ex-CIA Chief Brennan’s Broadsides Against Trump Only Help Putin


Former CIA station chief and Moscow veteran Dan Hoffman says the partisan sniping of Democrats and Republicans – and former CIA Director John Brennan – is playing right into Russian President Vladimir Putin’s hands:
  • As a trained intelligence officer who knows what makes our society tick, Putin understands the best way to soil our democratic process is to link it with a touch of conspiracy, i.e. to the Kremlin. He is acutely aware of the value to Russia of exacerbating the political tension that grips our country.”
     
  • “That’s why I was particularly upset when former CIA Director John Brennan delivered cringe worthy tweets excoriating President Donald Trump’s character and then ‘speculating’ on MSNBC that Trump has not said anything negative about Putin because Trump ‘has something to serious to fear.’ Brennan insinuated Putin was in a position to blackmail the president.”
     
  • Democrats and Republicans regularly trade charges of collusion, conspiracy and obstruction. We have yet to find the common ground necessary to defend against Russia’s espionage onslaught. Our elected leaders should call a time-out from partisan attacks on each other, which only serve Putin’s interests. Neither Democrats nor Republicans are the enemy. Both sides should aim their sights on the Kremlin.”


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Separating Kim Jong Un from his Elites


Navy Commander Fredrick ‘Skip’ Vincenzo says North Korea’s Kim Jong Un—close to being able to credibly threaten the United States, and thus with his regime secured—is “waging an information offensive” to drive a wedge between the U.S. and South Korea.
  • “Kim is depicting himself as the peacemaker and the U.S. as the barrier to peace, as he seeks to set the conditions that either force the U.S. to withdraw or compel South Korea to ask it to leave.”
  • “Although there has been North and South engagement before, the underlying conditions are now much different—the U.S. increasingly sees North Korea as an existential threat while much of the South remains ambivalent. Kim is hoping to break the alliance by exploiting this seam.”
  • “Kim’s leverage is based on his perceived willingness to use nuclear weapons, as well as the thousands of conventional weapons he has pointed at Seoul. But he needs an army led by a cadre of elites to run his threat-of-war machine. The U.S.-led alliance against Pyonyang can undermine the strength and reliability of Kim’s military by convincing regime elites that—should Kim take them to war—his interests will sharply diverge from theirs.”
Read Cmdr Vincenzo’s personal views of Kim’s information offensive, from his decades spent working the Korea problem.

Newsletter by Cipher Brief Content Manager Brian Garrett-Glaser. Please send tips or comments to POV@thecipherbrief.com

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