China Prepares To Take Back Taiwan By Force

I just returned from a trip to China, so I'm sorry I have not been able to post. Anyway, I'm back for few months before I travel again.

China will go to any lengths to take back Taiwan, even send covert operatives into the U.S., penetrate sensitive defense contractors, and steal U.S. technology. The trial of Chi Mak begins and for the first time we get to see the inside of Mak's CCP intelligence operation.

SANTA ANA, Calif. — The career of a Chinese-born electrical engineer, Chi Mak, over four decades is a textbook example of how China's spy services encourage their agents to burrow into American society in order to steal America's defense secrets, federal prosecutors said yesterday.

The naval technologies Mr. Mak worked on for a defense contractor, Power Paragon, were of interest to China because of its ambition to gain control over a democratically governed island off the mainland, Taiwan. "Their no. 1 goal is to support the retaking of Taiwan, if it comes to that," the prosecutor said. He said the main obstacle to the Chinese effort is the presence in the area of the American 7th Fleet. "The Chinese Navy has determined that it cannot fight the 7th Fleet face to face, but the way to attack the 7th.

Mr. Staples said the high-grade encryption was the hallmark of an espionage operation. "It's not an encryption program that you can go to Fry's or Office Depot and buy. It was a custom-made encryption program and its author was a Chinese man," the prosecutor said. He alleged that American investigators would have been unable to break the encryption if a search of the home of Mr. Mak's brother hadn't turned up a key to the code.

Chinese Police Officer Speaks Out on HUMAN BODY SHOP

China's execution van

Not that I need any more convincing or anything, but I'm always interested to read another story of the bizarre behavior coming out of a country which claims to be an equal to the U.S. Cutting out organs from prisoners is not a good place to start your path the higher living. When you look a little closer you realize China's human body shop is all about making money, and the Falun Gong are paying for it with their organs!

Former Chinese policeman lifts lid on organ harvesting

It claimed since 2000 almost 40,000 transplants have been carried out using body parts harvested from executed members of the Falun Gong movement.

"As far as I know during the period I was a policeman all the organs were harvested by the Friendship Hospital in Beijing."

"The Beijing Public Security Bureau would notify the Friendship Hospital before they carried out the execution of prisoners," Mr Sun said.

"The Friendship Hospital would then send an ambulance, and as soon as the prisoners were executed, the police on the spot would put them in a plastic bag and throw them into the van."

Former diplomat Chen Yonglin defected to Australia last year.
He says it was no big secret in government circles that both criminal and political prisoners were used for organ harvesting.

Mr Chen says it is as much for political purposes as it is commercial ones.
"In China, especially in modern time, the ethics standard is extremely low. A lot of, you can see that fake products, fake medicine everywhere in China. People just want money," he said.

Have Organs, Will Travel

As evidenced by the daily exit of organs from imprisoned Falun Gong members, China is a far cry from being a democracy. Not that anyone needed to be told... but now the CHICOMS are making an official statement.

The Communist Party

The Communist Party cautioned China's increasingly impatient reformers and intellectuals Tuesday that political liberalization and democracy are still a long way off despite the rapid pace of economic change during the past two decades.

Chinese Consulate Asleep At The Wheel?

Image

Seems the Chinese Consulate in Houston has been sleeping at the wheel. Someone forgot to tell one of their officials "Chen Guangda" that China is killing, torturing, and cutting organs out of the Falun Gong. But hey, it's never to late to learn. He could always read Cover For Action to learn about China's persecution of the FLG.

NEWS ALERT!!!! Chinese Consulate in Houston wants to help the Falun Gong. Let me guess, "we can help you sell your organs".

Related story below:

Group Claims China Harvesting Members' Organs

Chen Guangda at the Chinese consulate in Houston denied the allegations. "The Chinese government never persecuted Falun Gong practitioners. We just outlawed Falun Gong because it is anti-social, anti-humanity and anti-science cult," Guangda said. "We just want to help them."

Did Chinese Operatives Hunt Down a 14 Year Old Girl on U.S. Soil? Part II

Feb 12, 2007

NEW YORK—A Beijing girl held against her will by Chinese authorities here in the United States—and thought to be in imminent danger of abuse or torture should she be returned to China—is now safe. Grave concerns are now being raised for the girl's family still in China.

U.S. Customs Agents detained 14-year-old Youran Zhao (pronounced "yo-ran jow") and her two official chaperones at JFK airport in New York City Sunday afternoon as they were getting ready to board a flight scheduled to depart for China at 3:30 p.m. Agents held them until her aunt and legal guardian, Ms. Xiufen Zhang, arrived with her lawyer.

Zhang and Youran then left the airport by a side exit in order to avoid Chinese agents they feared would be in the vicinity. According to Mr. Yonglin Chen, a former Chinese Embassy official who defected in Australia in 2005, Chinese authorities have previously kidnapped foreign nationals back to China for punishment. The Chinese regime considers defections or asylum a blow to the Chinese Communist Party's esteem.

Did Chinese Operatives Hunt Down a 14 Year Old Girl on U.S. Soil?

An amazing story took place of several days within the U.S., yet the story got ZERO play in the popular media.

Cover For Action excited to provide the news for you.

Feb 11, 2007,

WASHINGTON, D.C.—The whereabouts of a Beijing girl named Youran Zhao, reportedly to be kidnapped in Boston by the chaperon of her student tour group between 6:00 a.m. and 7:00 a.m. on Sunday, February 11, is still unknown. The American police are currently searching for the 14-year-old girl. Zhao's aunt Xiufen Zhang, a resident of New Jersey, is calling the public for help to locate her niece.

Zhao and her entire family practice Falun Gong. Zhao was selected to be part of a school tour for a winter camp in Los Angeles on January 30 this year. Prior to her departure from Beijing, Zhao contacted her uncle and aunt in New Jersey over the phone and email, expressing her wish to meet them in the U.S.

"But the Chinese Communist regime's Public Security Bureau (PSB) has been surreptitiously listening to our conversations and reading our emails. Before Youran's departure for the U.S., the PSB has threatened her family to arrest them and send them to China's gulag system, or fire their jobs in the Chinese government, if she were to meet with us in the U.S.," says Ms. Zhang.

Ms. Zhang learned that Youran's cell phone had been confiscated by the leaders of the tour group and they warned Youran again not to contact her aunt.

Ms. Zhang recalled, "When they took her away, I argued with the delegation for a long time. I fear that she would face persecution if she were to be removed to China."

After Ms. Zhang reported to the police, the study group's bus was greeted by the Boston police on the morning of February 11, but she was nowhere to be found. The police interrogated the group and learned that Zhao had been removed by two people from the group earlier.

According to the spokesperson of Falun Dafa Information Center, Mr. Kangang Xu, the child is not under any protection right now and faces the persecution of the Chinese Communist regime. She is in imminent danger.

According to an undisclosed American official, the delegation has decided to remove the child to China on the day of the kidnapping.

Chinese Harrassment: Telephone Blast

Sometime ago I read an article about the Falun Gong receiving harassing phone calls from suspected CHICOM numbers deep within Bejing. I have to tell you, it sounded kinda odd. After posting a few articles on the Falun Gong, Cover For Action was contacted by concerned Falun Gong members who told a simlar story: being harrassed by phone.

I asked practitioners if they could provide me a copy of the phone message, so that I could hear it for myself. My initial plan was to post it for all readers to hear. But after some thought and discussion, it came to pass that posting the audio file would simply propagate what the CCP was trying to do: push out hate propaganda.

So readers, you'll have to take my word. I heard the file... it's a spooky automated bit of propaganda. For the most part, it's a demoralizing bit of wasted air canted at poking fun of the Falun Gong. In my grown up world, the calls seemed like school yard antics. But hey, whoever said the Chinese Communist Party was mature and responsible.

I should also note, many of the people who emailed me commented they felt intimated, scared, and harassed by the calls. The volume, duration, and frequency of the calls also seemed to serve as a telephonic Denial of Services too.

Discrimination, Hate Messages among Chinese Exports to U.S

Beginning Feb. 6, repeated calls were made to hundreds of people in more than 20 countries in a well-coordinated fashion. Friends whose mobile phones rang at the same time picked up and heard the same pre-recorded messages in Chinese or English.

Speakers at the Tuesday press conference described unlisted numbers in the U.S. being bombarded with calls and a feeling of invasion of privacy. They said that no group besides the
CCP has the ability and the motive to track down and call so many people in another country so systematically.

The pre-recorded messages were all against the practice of Falun Gong, and some also included Chinese nationalist messages. “My husband and daughter received calls, which disturbed us greatly,” said Ma Lili, a New York businesswoman who was forced to leave China after
Falun Gong began to be persecuted in 1999. Her friends in China were invited in to have a “conversation” with Chinese national security at the same time that the calls were being made.
Many recipients of the phone calls reported them to local police and intelligence agencies, such as the FBI.

The U.S. House of Representatives took note of CCP activities against Falun Gong practitioners on U.S. soil in its 2004 concurrent resolution 304, which calls for reporting and investigation
of such activities.

Brad T. Delight

A few days ago I got a reply post from "Brad T."... he wrote a pretty nice little delight... with a brief look at the horror of communist rule. I liked it so much, I thought it deserved it's own space.

Thanks Brad T.

brad t. said...

Communists commits genocide upon others, and its own countrymen.

Chinese Communism seems to be torturing and killing some group of people every decade.

1949 - Chinese Communism came to power in China. During World War II, they hung around villages, recruited members & ate for free. The communist only fought 2 battles; the rest of the fights were left to the Kuomintang. As a result, the number of Kuomintang soldiers decreased. When World War II ended, the communist came out in droves & chased the Kuomintang away.

1950s - The persecution of Tibetans began.

1969 - Cultural Revolution. All the good traditions and believes of ancient China were destroyed and trampled upon.

1989 - Tiananmen Massacre. Students were shot and rolled over by tanks for protesting.

1999 - Persecution of Falun Gong. Soon after, the communist started to make money from harvesting organs of Falun Gong people.

2007 - Shot an anti-satellite weapon into space...Every year, tens of thousands of protests happens in China and the number is getting larger.

I remembered the old "seem to be strong" communist Russia crumbled overnight, and it all began with the people losing faith in communism.That is exactly what is happening in China today.

Communist China is imploding.

Falun Gong pay for Chinese Military

In a recent report by the honorable David Kilgour, Canadian Secretary of State, there is clear indication that the Chinese Military is using profits from harvested Falun Gong organs to supplement it's bulging budget.

Kilgour has also suggested the International Olympic Committee (OIC) leverage China to discontinue their attack on the Falun Gong and the organ harvesting practice. And he warns... thousands of people will show up at the Beijing Olympics wearing badges saying "stop persecuting Falun Gong" or "stop organ snatching." Does anyone expect China to listen to the OIC?

You know what that means right? Thousands of people wearing egg a la face pins. What a sight, people with anti-China pins, reeking of free speech, advertised at every Olympic event, on every news network and in thousands of international homes. The CHICOM's will be rushing to fix the problem. What will they do? Take the pins, remove them forcefully from patrons?

Ah, perhaps countries ought to warn travelers the risk of having their liver cut out...unwillingly.

The EPOCH Times

"We believe that there has been and continues today to be large-scale organ seizures from unwilling Falun Gong practitioners," conclude the Canadian authors of a groundbreaking report on organ harvesting in China, in its revised version introduced in Ottawa on Jan. 31.

The new report sheds light on the state of health and military financing in China. Both rely on money made from illegal organ transplants to make up for budget shortfalls, says the report.

The Olympics should be used "as a lever to get [Chinese authorities] to stop this terrible practice," Kilgour told The Epoch Times."The reason it is happening is that we have a totalitarian government combined with what I call 'carnivore capitalism' where anything goes, and it shouldn't surprise people to know that this unimaginable practice is happening," he said.

Kilgour believes the International Olympic Committee should "start to make some very stiff demands on China," starting with stopping organ harvesting immediately. He added that if the organ harvesting does not stop, thousands and thousands of people will arrive in Beijing in 2008 with badges saying "stop persecuting Falun Gong" or "stop organ snatching."

"Their reputation will be in complete disgrace."

Chinese Corruption and Collapse

Chinese Corruption and Collapse

China's banking system is in a sad state of affairs. After years of high dollar rolling for their military build-up, Chinese banking and financial infrastructure, largely state owned, is on the verge of burning up. Plagued by massive corruption, greed, and narrow sightedness, the government has failed to understand the basic principals of new world finance. Then again, no one ever said it was easy to teach an old communist dog, a new democratic trick. It's hard to be a forward thinker when a line item on your annual budget is labeled: organs cut out of prisoners and sold. Ya, it's in the black too.

SEEKING ALPHA

The Inevitable Collapse of China's Banks

Chinese megabanks aren't even banks -- at least not the way we understand them. Carved out of the old Communist banking system just over 10 years ago, the state-owned banks' role has been to bankroll the government's massive infrastructure projects and to keep otherwise bankrupt state-owned enterprises [SOEs] afloat. As arms of the Communist government, Chinese banks have had no incentive to learn the disciplines of basic banking. Conversely, loan applicants never had to cobble together a business plan to get a loan -- or suffer the negative consequences of failure.

That's why it's no surprise that Chinese state-owned banks are a commercial disaster. The Chinese government has pumped over $434 billion to bail them out -- just since 1998. That's more than the GDP of banking giant Switzerland

Peek behind the Wizard of Oz's (or Shanghai's) curtain, and you'll see that China's double-digit percentage growth rates are an economic sleight of hand that have come at a price of escalating bad debt and non-performing loans. At the end of 2004, bank debt in China stood at $3.7 trillion -- about twice the size of its GDP. That's the highest proportion of any economy in the world. And that debt is lent almost entirely by state-owned banks -- and over half of it by the Big Four. Today, Chinese state-owned enterprises [SOEs] owe banks over $2 trillion -- about the size of the entire Chinese economy. And the amount of outstanding loans is growing by $500 billion each year.

Throw in China's cheap labor and you see why the Chinese are selling Honda knock-off motorcycles at the price of their weight in scrap metal in Vietnam. This may lead to impressive rates of "top-line" economic growth in the medium term. But it also leads to the kind of massive misallocation of resources that eventually brought the Soviet Empire to its knees.

This makes the coming collapse of Chinese banks inevitable. And it won't be the first time it will have happened. In the Asian crisis of 1997, two Guandong banks went belly up -- exposing the massive non-performing loans given to the Chinese red chips floated in Hong Kong.

Indeed, when Ernst & Young suggested in 2005 that banks' bad debts in China might amount to as much as $911 billion, the Chinese government quickly suppressed the report. That should be no surprise. Repressing the truth is what Communist governments are best at. But the next time you hear about China's $1 trillion of foreign reserves, remember that this world record stash is barely enough to pay off its bad banking debts. And with cheap loans financing a big chunk of China's 10%+ annual economic expansion, bad debts may approach $2 trillion before the bubble bursts.

Think of the Chinese economy like the bus in the movie "Speed." The Chinese economy is like the bus that has been rigged with explosives. If its speed drops to below 50 mph, it will explode. The Chinese authorities' challenge is to keep the bus going above 50 mph until the bomb can be (somehow) defused. If economic growth does slow, SOEs won't be able to service their debts and the entire banking system will collapse on itself. And even $1 trillion won't be enough to save it.

Here's what's worrisome. The Chinese bus will eventually run out of gas. And the Chinese economy plays a much bigger role in the global economy than it did during the Asian Crisis of 1997. China's troubles will have a much greater impact on the U.S. economy than the collapse of the Soviet Union -- an economy that accounted for less than 1% of U.S. trade in 1991.

Is Chinese Intelligence Intelligent?

Come on now. Who conducts an ASAT test, blows billions of bits of material into a satellite debilitating debris field, and then says: we are peaceful and did not mean to harm relations. That's like the kid with his hand in the cookie jar who says: I was not going to eat any of these cookies, only inspect them for defects. Pleeeaase!

Times Recorder Zanesville, OH

Just as everyone is watching Iran and North Korea, China is quietly, but rapidly, developing its anti-satellite (ASAT) capability to shoot down U.S. satellites.

This is the other face of China, the hard power side that they usually keep well hidden," says Chong-Pin Lin, an expert on China's military in Taiwan and the author of China's Nuclear Weapons Strategy, "they talk more about peace and diplomacy, but the push to develop lethal, high-tech capabilities has not slowed down at all."

"This is a wake-up call," warns Robert Joseph, the under secretary of state for arms control and international security, that China is "pursuing capabilities to exploit our vulnerabilities." The question is: how should the United States respond to such worrisome Chinese moves?

Chinese in Space....

China goes back to space just weeks after catching the world by surprise with a SAT killing maneuver. The so called ASAT mission left a huge debris field and worse, according the the Japanese, violated international law. Although billed as a "friendly" GPS satellite, the new space monkey undoubtedly has Military applications...giving China another foot into the Space Battlefield. America and the world sleep....

Photo Credit

GPS Daily

by Staff WritersXichang, China (XNA)
Feb 05, 2007

China successfully put a navigation satellite into orbit early Saturday from the Xichang Satellite Launch Center in southwest China's Sichuan Province. The carrier rocket, Long March 3-A, blasted off at 0:28 a.m. ( Beijing Time). The satellite separated from the rocket about 24 minutes later. Data from the Xi'an satellite monitoring center showed that the satellite had accurately entered its orbit.

Experts said the Beidou satellite navigation experimental system is operating well and has played a significant role in cartography, telecommunications, water conservation, transportation, fishery, prospecting, forest fire monitoring and national security.

Compass Satellite Navigation Experimental System (BeiDou-1)

It is China’s first space-based regional navigation and positioning network. The system provides all-weather, two-dimensional positioning data for both military and civilian users.

New Scientist.com

But things appear to have changed in Beijing. On 2 November, the country's official news agency Xinhua reported that Beidou would, from 2008, begin providing an "open" level of service, with 10-metre accuracy, in addition to its "authorised", encrypted military service.

Chinese ASAT is UNSAT

Although slow, the U.S. official reaction to China's SAT killing adventure is finally showing sings of having a backbone. Surprisingly, few other nations took exception to the test.

By Bill Gertz
THE WASHINGTON TIMES
February 2, 2007

The Bush administration has suspended plans to develop space ventures with China, including joint exploration of the moon, in reaction to Beijing's Jan. 11 test of an anti-satellite weapon that left orbiting debris threatening U.S. and foreign satellites.

Robert Joseph, undersecretary of state for arms control and the administration's point man for space security policy, said yesterday that the space weapons test was a shock. It shows space is a "contested environment" and that "countries are developing capabilities to put at risk our assets for which we are dependent," he said.

Also, the space arms test should be viewed in the context of China's large-scale buildup of both strategic and conventional forces, not just their space weapons, he said.

"We're now stuck with hundreds of pieces of this Chinese satellite for a hundred years, and it's having an impact on the entire global commons," she said, noting that there needs to be "common norms and acceptable rules of behavior in space."

U.S. intelligence officials said China has sought to obtain U.S. military space technology through espionage and other covert means but has been curbed by U.S. security measures. "They've had trouble getting it through the back door so they decided to come in through the front," a defense official said.

Among the technologies sought by the Chinese are dual-use civilian and military goods used in maneuvering spacecraft, including propulsion and battery know-how, which have applications for anti-satellite guidance systems, the defense official said.

Another Chinese Massacre:1997

There are no words to express how outstandingly horrible a communist government can be, China is at the top of that list!

AMNESTY INTERNATIONAL: Feb 2007 (remembers the past)

On 5 February 1997, dozens of people were killed or seriously injured when the Chinese security forces brutally broke up a peaceful demonstration in the city of Gulja (Yining) in the Xinjiang Uighur Autonomous Region (XUAR) of China. Hundreds, possibly thousands, lost their lives or were seriously injured in the unrest that occurred the following day. Large numbers of people were arrested during the demonstrations and their aftermath. Many detainees were beaten or otherwise tortured. An unknown number remain unaccounted for.

I arrived in Gulja City in the morning of 7 or 8 February, and went to the home of a Uighur friend of mine. In the afternoon my friend took me to the home of another Uighur family whose two sons had been killed during the Chinese military crackdown on the peaceful protestors in Gulja a couple of days earlier.

I was trying to talk with them, the Ili Prefectural Police and Chinese Military officers and soldiers burst into the house. The soldiers pulled the parents by the hair and kicked them really hard. The top military officer ordered me to put my hands on my head and to face the wall and said, "if you resist or shout and scream, we will shoot you." It was clear that it was the Chinese military officer in command, not the prefectural police, who didn't dare say anything in front of him. They forced me to strip completely naked and searched all my clothes.

....Despite her concern that I was being followed she gave me some tea and spoke to me about the demonstration and the crackdown. She said she had seen numerous Chinese military trucks piled high with dead or beaten Uighurs going into the local Yengi Hayat Prison but had not seen people leaving. She said she was certain that nearly 1000 Uighurs had been taken into the prison, but that the prison could only accommodate 500 prisoners. Furthermore, she said she saw many military trucks leaving the prison that were filled with dirt. Many others I spoke with had also witnessed this. Many suspected that dead bodies were buried in the dirt and were being taken out to be disposed of.

While at his home, the Ili Prefectural Police broke in and detained me for a second time, again taking me back to the police station. I learned later that this gentleman was subsequently arrested and sentenced to two years in prison for passing "state secrets" to me. When he was released two years later he had had a mental breakdown.

In one part dozens of military dogs were attacking – lunging and biting at, peaceful demonstrators, including women and children. Chinese PLA soldiers were bludgeoning the demonstrators – thrashing at their legs until they buckled and fell to the ground. Those on the ground – some alive, others dead, were then dragged across the ground and dumped all together into dozens of army trucks.

...a young Uighur girl screaming, "Semetjan", then running to a young man who was bleeding and being dragged by a Chinese soldier to a truck. Another soldier knocked her down and shot her dead right on the spot. He then dragged her by the hair and dumped her into the same truck into which the young man had been thrown. In another part of the film gunshots were fired into a group of Uighur children, aged 5 to 6, who were with a woman holding a baby, all were shot. It wasn’t clear where the guns were being fired from, whether from a rooftop or truck-top. There were tanks in the street, and in the film one could see three kinds of PLA soldiers: those with a helmet, baton, and shield; those with automatic weapons; and those with rifles with bayonets. In the film I heard Chinese soldiers shouting, "kill them!, kill them!" I heard one officer shouting to a soldier, "Is he a Uighur or Chinese? Don’t touch the Chinese but kill the Uighur."

A Record That Spins The Other Direction.

The horrible Chinese record on free speech is off the charts. Journalist are often times threatened, followed, monitored, sanctioned and murdered. Those who find themselves in prison end up dead or mentally finished. With such regulation of free speech one wonders the horror hidden from the rest of the world.

Image Credit

Reporters Without Boarders has released their annual report. It's a good read. Highlights provided here for CFA readers.

China-Annual Report: 2007

Yu Dongyue, who was arrested during the Tiananmen Square massacres of 1989, was released in February but had been driven insane as a result of long periods in solitary confinement. At least 31 journalists were in jail as of 1st January 2007.

Hu Jintao’s voiced rage against “hostile forces", whom he accused of fomenting a "coloured revolution” backed by the United States and led by human rights activists and liberal journalists, when he spoke to an audience of ministers, ambassadors and party provincial officials in August 2006. As preparations got under way for the next Communist Party Congress in October 2007, public security arrested at least 12 journalists and placed scores more under surveillance. This crackdown has also extended to lawyers. In March they were banned by China’s Association of Lawyers from speaking to foreign journalists about “masses incidents”, concerning groups such as the unemployed and the peasants. In September, Chinese judges had the same ban on speaking to the press slapped on them.

The Propaganda Department continues to attack each article deemed to be contrary to the new ideology of a “harmonious society” proclaimed by Hu Jintao. Media editors receive regularly a list of banned subjects. These might be demonstrations by peasants, the unemployed or Tibetans. Nothing escapes the censors, who cultivate a climate of fear within editorial offices. Censorship cases can be measured in their tens of thousands each year.

At the beginning of the year, the Propaganda Department dismissed prominent journalists Li Datong and Lu Yaogang from the weekly Bing Dian. This purge provoked a strong reaction within the profession and the communist party. To quell this defiance, the authorities banned any reference to it, put forums used by journalists under surveillance and sent police officers into editorial offices.

Increasing physical attacks on journalists are no longer being committed only by members of the security forces. Delinquents or henchmen in the pay of businessmen are also involved. Reporters Without Borders has recorded around 40 such incidents. But, according to the official organisation, journalism has become the third most dangerous job after mining and the police. . Two journalists, Wu Xianghu and Xiao Guopeng, were killed by police in 2006.

Millions listen to the BBC and Radio Free Asia programmes in Chinese, but their broadcasts are jammed. In 2006, Reporters Without Borders tested the jamming of Voice of Tibet and Radio Free Asia in Tibet. The authorities overlay programmes on short and medium wave with thudding sounds or educational programmes in Chinese.

Chinese Front Companies In The U.S.? A second try!

Seems my last post was damaged/hacked. Over half of the articles I posted disappeared after they were posted. We'll try this again, but so you that you now, the articles I post/refer to here are not my words, but simply excerpts from the original documents. I do appreciate when a reader identifies updates or changes to stories that I've posted. Similarly, if you have an issue as to the truthfulness of the article, please address it with the media outlet that published it. As a general rule, Cover For Action, assumes most popular media outlets are acceptable and accurate providers of news.

WASHINGTON TIMES:
U.S. government investigators say the number of cases involving China and its middlemen who have illegally obtained sensitive or classified U.S. weapons technology is growing. In the past few years, Chinese agents illegally purchased or were caught trying to steal night-vision technology, restricted electronic components, embargoed components for precision-guided missiles, radar and electronic warfare, and communications systems, according to Immigration and Customs Enforcement (ICE) officials.

China also sought to purchase encryption devices that are embargoed for export and computer software used in missile development, ICE officials said. In one recent case, China tried to purchase parts for F-4 and F-5 jets and Hawk missiles from U.S. suppliers that were intended for reshipment to Iran. Officials said one of the most damaging illegal technology exports to China took place in the late 1990s. In that case, China secretly obtained technology related to the Aegis battle management system, used in the most modern U.S. warships. A Chinese front company won a contract from the system manufacturer and then stole details about Aegis, according to FBI counterintelligence officials.

QUESTIA

In one case sketched out by Waultney's boss, John Hensley, before a Senate hearing in July 1997, a Chinese front company managed to purchase 37 guidance kits for F-117A stealth fighters from a Defense Department depot and ship them to China as "scrap."

In another case, brokers working for the Communist Chinese government snatched up an astonishing 26,000 fully operational encryption devices, including computer disk drives loaded up with top-secret technical documents all considered U.S.-government scrap.

A high concentration of Chinese-government front companies continues to operate out of El Monte, a modest working-class suburb located some 10 miles due east of downtown Los Angeles.

Primary among them is the China National Aero Technology Import Export Co., or CATIC. Back in China, CATIC owns factories that develop fighter aircraft and remotely piloted vehicles and contributes to cruise-missile development. In El Monte, CATIC buys paper pulp to be shipped to China for recycling and imports bicycles, electrical parts and hardware for sale in the United States. But it also purchases aerospace systems, which it ships back to China clandestinely for use in military projects.

CATIC is not the only mainland-Chinese company operating in the El Monte area. In one six-floor office building just around the corner at 9300 Flair Dr., no fewer than 150 Chinese trading companies have set up shop, although most of them appear to be little more than mailbox entities. Down in the lobby, which houses a bank and a California state health center, only a half-dozen companies are listed as having offices on the sixth floor of the handsome, black-glass office complex overlooking the freeway. But a quick trip up the elevator to the sixth floor reveals that more than 40 companies actually have hung name plates on the doors -- all of them Chinese.

According to David Su, an attorney who has incorporated dozens of these companies, "there are a few thousand Chinese companies in the Los Angeles area. Most of them were set up by individuals with management positions back in China and are controlled by Chinese state-owned companies." Su acknowledged that many of the companies listing his office suite as their address had no visible operations. Su said that in many cases he had not seen the owners since they filed the initial incorporation papers and returned to China. Although Su wouldn't comment on why they had established the companies in the first place, mailbox companies frequently are used as fronts for illicit business by money-launderers, high-tech bandits and arms dealers -- or more mundanely, by individuals keen on disguising the origins of their wealth.

Communist Chinese Procurement Activities in the United StatesTestimony by Kenneth R. Timmermanbefore the U.S. -China Commission

I have been investigating Chinese high-technology procurement efforts in the United States since I was a Congressional staffer for Rep. Tom Lantos (D, CA) in 1993. Shortly after leaving the Hill, in July 1994, I reported that U.S. Customs officials were investigating Chinese government companies that were attempting to purchase defense production equipment being sold at auction from U.S.

During one of my investigations in California, I personally visited around 150 Chinese front companies, many of them no more than placards on closet offices that came alive to support a particular clandestine deal. I have appended to my written testimony a print-out of just one such network, which includes freight forwarders, bankers, import-export agencies and insurance brokers used to support Chinese military procurement activities in this country.Because the Chinese mastered the whole process, using companies and agents they controlled and communicating almost exclusively in Mandarin, neither the FBI, Customs, or OEE had much success in penetrating these networks. One of these companies operated undetected for more than two years directly above a CIA liaison office in the Los Angeles area. Clearly, we need more Mandarin-speaking agents, and a much active Customs operation to infiltrate and disrupt these procurement networks.

THE WALL STREET JOURNAL

"China is the biggest (espionage) threat to the U.S. today," says Mr. Szady, now 61 years old and the FBI's top counterintelligence official.

Counterespionage experts say the trouble often starts when they are contacted by Chinese government officials or one of the more than 3,000 Chinese "front companies" the FBI alleges have been set up in the U.S. specifically to acquire military or industrial technologies illegally.

The U.S. government is prosecuting about a dozen cases against individuals alleged to have sent technology to China illegally. FBI officials say at least three more will likely go ahead in the coming months. Over the past five years, the total number of such charges has grown by around 15 percent annually, according to some FBI agents.

NBC

intensified campaign by the People's Republic of China to steal military and civilian technology.

U.S. officials say there are now 400 active investigations here involving illegal exports to China — more than any other country.

Undercover video — obtained exclusively by NBC News — shows Bill Moo, an employee of a U.S. defense contractor, inspecting a military jet engine that he planned to secretly buy for China.

Unbeknownst to him, Moo had made the deal with undercover U.S. agents and was later arrested. He pleaded guilty to being an unregistered foreign agent for China.

"The Chinese are very good at using multiple redundant collection platforms," says former FBI Assistant Director Szady, "and by that I refer to students, delegations, visitors, researchers, development, partnerships, business deals and false front companies."

OAKLAND TRIBUNE

One day last June, FBI agents swooped into two affluent Silicon Valley homes and arrested two engineers. Lan Lee and Yuefei Ge stand accused of stealing proprietary chip designs and software

Lee and Ge allegedly set up a front company backed by a Beijing venture-capital firm with links to China's military, and planned to go into business with the Chinese government.

"Silicon Valley is a hotbed" of economic espionage, said Don Przybyla, who heads an FBI counterintelligence unit in San Jose. The valley is home to many of the estimated 3,000 Chinese front companies nationwide set up to steal secrets and acquire technology, according to the FBI.

March 17, 2006
Statement by
John J. Tkacik, Jr.
Senior Research Fellow in Asian Studies
The Heritage Foundation
Before the
The U.S.-China Economic and Security Review Commission
Hearing on Chinese Military Modernization and Export Control Regimes

It was and is my impression that Chinese security officials inform all Chinese science and technology workers visiting the U.S. that they could be given specific collection tasks while in the U.S. The case of two Chinese academics at American University, Ms.Gao Zhan and her husband, Xue Donghua, is instructive. Apparently, Ms. Gao and Mr. Xue had received such a tasking and reportedly managed to export as much as $1 million in radiation-hardened microchips to a military laboratory in Nanjing before being arrested in 2001.

Gao and Xue were emblematic of vast Chinese government effort to collect industrial and technical secrets. A year ago, in March 2005, FBI Assistant Director Dan Szady, commented on the existence of an estimated 3,000 Chinese front companies operating in the United States in order to facilitate illegal technology transfers to the Chinese government.

In September, Michelle Van Cleave, the national counterintelligence executive, told the House Judiciary subcommittee on immigration, border security and claims that Chinese "state-directed espionage remains the central threat to our most sensitive national security technology secrets." She said Chinese intelligence agents are "very aggressive" in business and "are adept at exploiting front companies."

Google takes one in the NADS, using China's boot.

I imagine the romantic notion of making a mound of money clouded Google's vision like bad beer goggles and a regretful one nighter with someone who's name escapes you. Google woke up next to a gnarly girl with bad breath and big hair. Having regret is ok, we all make mistakes. Time will tell if Google has learned from their late night adventure, sipping on the CHICOM juice.

China censorship damaged us, Google founders admit

Google's decision to censor its search engine in China was bad for the company, its founders admitted yesterday.

Sergey Brin and Larry Page, was accused of selling out and reneging on its "Don't be evil" motto when it launched in China in 2005. The company modified the version of its search engine in China to exclude controversial topics such as the Tiananmen Square massacre or the Falun Gong movement, provoking a backlash in its core western markets.

Last year in a speech in Washington Mr Brin admitted the company had been forced to compromise its principles to operate in China.