rense.com

China Aims Spy Network At
Trade Secrets In Europe
'Defector' Reveals Beijing's Plan To Use Espionage To
Achieve Its Objective Of Commercial Dominance

By Damien McElroy
The Telegraph - UK
7-3-5
 
A network of Chinese industrial spies has been established across Europe as the Communist government's intelligence agencies shift their resources and attention from traditional Cold War espionage towards new forms of subterfuge aimed at achieving global commercial dominance.
 
The extent of the spying was laid bare after a leading Chinese agent "defected" in Belgium. The agent, who has worked in European universities and companies for more than 10 years, has given the Sûreté de l'Etat, the Belgian equivalent of MI5, detailed information on hundreds of Chinese spies working at various levels of European industry.
 
With the number of Chinese entering Europe about to increase as Beijing relaxes travel restrictions, Western intelligence agencies fear that the spying will be even more difficult to combat. Britain is likely to be one of the countries where significant infiltration is planned.
 
"There is a large Chinese intelligence operation in northern Europe spanning communications, space, defence, chemicals and heavy industries," said Claude Monique, a Brussels-based intelligence analyst.
 
"The Chinese agent has given details of hundreds of experts and their activities. As a result national inquiries have been launched, certainly by the German, French, Netherlands and Belgian agencies and, I believe, in Britain too."
 
A former British official, who runs a private consultancy specialising in fraud and risk management in Beijing, said that the Ministry of State Security systematically extracted the information it wanted from Chinese people travelling aboard, including tourists, businessmen and scientists.
 
"Any ethnic Chinese with relatives or business interests in China is vulnerable," he said. "There are a large number of people who live at or travel to key locations who are regularly debriefed or given orders to obtain various types of strategic information that Beijing finds is militarily or economically useful.
 
"Traditionally, the Chinese who went abroad since the late 1970s for trade or study purposes were in businesses controlled by the state. That apparatus of spying has grown over time as Chinese ambitions have risen."
 
Visa regulations easing restrictions on Chinese tourism have recently come into force in the UK, as well as continental Europe, and attempts to monitor travellers' activities and telephone calls are at risk of being overwhelmed. A spokesman for the security services said that Chinese spying already represented a significant intelligence challenge that mirrored the threat previously posed by Russian agents.
 
The defector making the allegations of spying in Belgium has refused to come forward in public because he has not yet received political asylum. He is described by Western intelligence officials as a leading figure in the Chinese Students and Scholars' Association of Leuven, an alleged front organisation based in a Belgian university town that co-ordinated industrial espionage activities across Europe.
 
According to an intelligence official, the association enabled Beijing's Ministry of State Security to maintain contact with a wide spectrum of Chinese citizens living across the continent: "The Chinese operate at many levels, from the pure intelligence agents based at embassies to researchers sent to Europe for training to individual citizens who work apparently independently for five or 10 years until they are in a position to prove their usefulness."
 
Among the companies targeted by the Chinese network, according to Belgian officials, is the French communications company Alcatel. It is contracted to build the ·1 billion (£676m) Galileo satellite communications system that European leaders have promoted as a rival to the American Global Positioning System, which has a monopoly of satellite communications systems.
 
The Western intelligence official said that China had been brought in as an official partner on the technology, largely because its successful espionage made it futile to keep Beijing out.
 
The strongest complaints about Chinese spying have emerged in America. David Szady, the chief of FBI counter-intelligence operations, has said that China is rapidly eroding America's technological superiority: "I think you see it where something that would normally take 10 years to develop takes them two or three.
 
"What they are looking for are the systems or materials or the designs or the batteries or the air-conditioning or the things that make that thing tick," he said. "That's what they are very good at collecting, going after both the private sector, the industrial complexes, as well as the colleges and universities in collecting scientific developments that they need."
 
A recent report to the American House of Representatives listed 16 "remarkable" Chinese technological breakthroughs that could have been achieved only by industrial espionage. These included a supercomputer that runs at speeds previously achieved only by America and Japan. Sophisticated communications systems, advanced satellite technology and advances in nano-technology were also identified as suspect in the report.
 
Among recent Chinese military advances, which experts believe increase Beijing's military strength in the sensitive Taiwan Strait, is a new cruise missile copy of America's Tomahawk weapon and a sea-borne defence system based on stolen Aegis system blueprints.
 
A Chinese adage holds that one good spy is worth 10,000 men. As China strives to displace America and Europe as a global economic powers, that ancient insight could help propel the country to new economic heights.
 
© Copyright of Telegraph Group Limited 2005.
 
http://telegraph.co.uk/

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