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China Denies Stealing U.S. Space Tech

Manufacturing.Net - November 18, 2008

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BEIJING (AP) -- China on Tuesday dismissed suggestions that it is seeking to illegally obtain U.S. space technology after a scientist in the United States was convicted of violating the U.S. arms embargo on China.

The scientist, Quan-Sheng Shu, a naturalized U.S. citizen born in Shanghai, pleaded guilty Monday in a district court in Norfolk, Virginia, to selling rocket technology to China and bribing Chinese officials to secure a lucrative contract for his high-tech company.

Qin Gang, a spokesman of China's Foreign Ministry, told reporters Tuesday, "the allegation that China is stealing outer space technology from the U.S. is being made with ulterior motives, and is in vain."

Qin did not elaborate.

Prosecutors said Shu, an expert in cryogenics, sold technology to China for the development of hydrogen-propelled rockets. Shu's attorney said the case had nothing to do with espionage or treason.

The Chinese government is developing a space launch facility in the southern island province of Hainan that will house liquid-propelled launch vehicles designed to send space stations and satellites into orbit. The project is overseen by an arm of the People's Liberation Army.

The U.S. maintains an arms embargo on China. The State Department determined that Shu's attempts to sell information on liquid hydrogen tanks and cryogenics equipment for the fueling system of a foreign launch facility constituted an illegal transaction.

Prosecutors said Shu, who is president of AMAC International Inc. of Newport News, had directed employees to falsify information to circumvent U.S. laws.

Shu also was charged with bribing Chinese officials to award a $4 million hydrogen liquefier contract to a French company acting as an AMAC intermediary.

Shu received more than $386,000 in commissions for securing the contract, authorities said. He already had agreed to forfeit that money.

Shu faces up to 10 years on each arms count and five years for the bribery charge and fines of up to $2.5 million. Sentencing is scheduled for April 7. He will remain free on $100,000 bond.

U.S. authorities in recent years have prosecuted more than a dozen cases of either traditional spying or economic espionage related to China. U.S. officials have warned in the past year of increasing espionage efforts by Beijing.


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Red Chinese have been stealing tech for years  11/18/2008 11:53:00 AM
It's laughable that China denies spying or stealing tech from our military and space programs. As has been documented, they have at least 500 shell companies in the Los Angeles area alone to do this exact thing.
No need for spying  11/18/2008 12:09:00 PM
China does not need to spy. Our universities are forming excellent chinese engineers (sometime for free). Our CEOs are moving all tech activities in China as well to reduce costs. The Chinese governement is interested in technology, the US is not...
No Need?  11/18/2008 3:53:00 PM
The chinese goverment has been using the proprietary information of US companies for as long as the US has been manufacturing there. The chinese gonvernment acts like a boyish egomaniac about these issue becuase they've had a society of liars and cohorts running things for years. China wouldn't be where it is today without the knowledge of western nations.
Knowledge is power  11/18/2008 4:45:00 PM
The thought of any civilized nation not taking advantage of the knowledge from other nations is laughable. All countries spy on each other. Anyone that ignores this fact is nothing more than puppet of stupidity. It is human nature to get an advantage on your adversaries. Remember Knowledge is power. So stop denying and start learning.


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