The Increasing Threat: Trade Secret Theft and Economic Espionage Cases Involving China (2000-2025)

Key Insights from Two Decades of Economic Espionage Cases

Accelerating Prosecution Trend: Since 2000, U.S. federal cases targeting Chinese economic espionage have dramatically increased, with over 80% of DOJ's National Security Division cases implicating China since 2012.
Strategic Industries Targeted: Chinese espionage efforts have systematically focused on advanced technologies including aerospace, semiconductor, agricultural chemicals, and artificial intelligence sectors.
Massive Economic Impact: The theft of U.S. trade secrets allegedly costs the American economy an estimated $600 billion annually in lost intellectual property.

Timeline of Major Federal Cases (2000-2025)

The following chronological list presents significant U.S. federal prosecutions involving trade secret theft and economic espionage connected to China or Chinese nationals from 2000 through early 2025:

Early Period (2000-2008)

Foundational Cases Setting Legal Precedent

This period established many of the legal frameworks that would guide later prosecutions as Chinese economic espionage activities began receiving increased federal attention:

United States v. Fei Ye and Ming Zhong (2001-2006): These individuals were charged with stealing trade secrets related to computer microprocessor design from their employers (Sun Microsystems, NEC, and Transmeta) to benefit a company they planned to establish in China. They pleaded guilty to economic espionage in 2006 and were sentenced to one year in prison, marking one of the first successful prosecutions under the Economic Espionage Act specifically involving Chinese beneficiaries.
United States v. Peter Lee (Case extended into 2000s): Lee pled guilty to lying on security-clearance forms and passing classified national defense information to Chinese scientists. He was sentenced to 12 months in a halfway house and three years' probation. This case highlighted vulnerabilities in the defense sector.
United States v. Yan Ming Shan (2004): Shan attempted to illegally export sensitive U.S. software technology to China. This case demonstrated growing concerns about technology transfer to China.
United States v. Dongfan Chung (2008): A former Boeing engineer was charged with economic espionage for stealing trade secrets related to the Space Shuttle, C-17 military transport aircraft, and Delta IV rocket programs for China. This case highlighted vulnerabilities in the aerospace sector.
United States v. Tai Shen Kuo (2008): Kuo was arrested for providing China with classified information between March 2007 and February 2008, underscoring concerns about traditional espionage methods working alongside economic espionage.
United States v. Hanjuan Jin (2008): Jin attempted to leave the U.S. with proprietary Motorola information bound for China. This case demonstrated concerns about "walking out the door" theft tactics.

Middle Period (2009-2017)

Increased Enforcement and Strategic Focus

This period saw increased DOJ focus on trade secret theft as economic ties between the U.S. and China grew more complex:

United States v. Walter Liew (2014): Liew, his company USA Performance Technology Inc. (USAPTI), and Robert J. Maegerle were convicted of economic espionage and theft of trade secrets from DuPont related to titanium dioxide manufacturing technology. Liew sold the stolen information to state-owned companies in China, including Pangang Group. This case highlighted industrial espionage targeting chemical manufacturing processes.
United States v. Xiwen Huang (2015): Huang stole confidential information from a government research facility related to military vehicle fuel cells to benefit companies in China, highlighting vulnerabilities in defense-related research.
United States v. Thomas Rukavina (2015): Rukavina stole trade secrets from PPG Industries for a competing Chinese firm, demonstrating industrial espionage in the industrial coatings sector.
United States v. Wei Pang and Hao Zhang (2015): They were charged with stealing trade secrets related to thin-film bulk acoustic resonator (FBAR) technology from Avago Technologies and Skyworks Solutions for use at Tianjin University in China. This case highlighted concerns about academic-industrial espionage connections.

Recent Period (2018-2025)

The China Initiative Era and Beyond

In November 2018, the Department of Justice launched the "China Initiative" to counter Chinese national security threats through identifying and prosecuting trade secret theft, hacking, and economic espionage. This period saw increased prosecutorial focus:

United States v. Huawei Corporate Entities (2019-present): The Chinese telecommunications giant Huawei was charged with conspiring to steal trade secrets from T-Mobile and other companies, allegedly offering bonuses to workers who stole confidential information from competitors. This ongoing case highlights concerns about state-backed corporate espionage.
United States v. Xu Jiaqiang (2020): Xu, a Chinese national, pleaded guilty to economic espionage and theft of trade secrets for stealing proprietary source code from his former employer (IBM) with the intent to benefit the National Health and Family Planning Commission of the People's Republic of China. He was sentenced to five years in prison.
United States v. Hao Zhang (2020): Zhang was convicted of economic espionage, theft of trade secrets, and conspiracy after stealing FBAR (Film Bulk Acoustic Resonator) technology from Avago Technologies to help Tianjin University and his Chinese company compete in the global market for cell phone RF filters.
United States v. Yanjun Xu (2020): Xu, a Chinese intelligence officer and Deputy Division Director of the Sixth Bureau of the Jiangsu Province Ministry of State Security, was convicted of conspiring to and attempting to commit economic espionage and theft of trade secrets. He targeted aviation companies including GE Aviation to obtain proprietary information.
United States v. Xiaorong You (2021): You (also known as Shannon You) was convicted of conspiracy to commit trade secret theft, economic espionage, possession of stolen trade secrets, and wire fraud. As a former employee of Coca-Cola and Eastman Chemical, she stole trade secrets related to BPA-free coatings for beverage cans, intending to establish a Chinese company with government funding. She was sentenced to 14 years in prison.
United States v. Linwei Ding (2024): Ding, a former Google engineer, was charged with theft of trade secrets related to AI technology to benefit Chinese companies, highlighting fears about technology transfer in emerging fields.
United States v. Chenguang Gong (2024): Gong was arrested on charges of stealing trade secret technologies related to missile detection systems intended for the U.S. government, showing ongoing concerns about defense technology theft.
U.S. Charges Against Chinese and Taiwanese Companies (2025): The DOJ charged two companies (one based in China, the other in Taiwan) along with three individuals with trade secret theft, conspiracy, and economic espionage. This marked the fourth case brought by the DOJ related to Chinese economic espionage in just three months of 2025, signaling continued aggressive prosecution.

Patterns and Sectors Targeted in Chinese Economic Espionage

mindmap root((Chinese Economic Espionage Targets)) ::icon(fa fa-user-secret) (Advanced Technology) ::icon(fa fa-microchip) (Semiconductors) [FBAR Technology] [RF Filters] (Telecommunications) [Network Equipment] [5G Technology] (Defense & Aerospace) ::icon(fa fa-rocket) (Space Technology) [Shuttle Systems] (Military Aircraft) [C-17 Designs] (Missile Detection) (Computing) ::icon(fa fa-laptop) (Artificial Intelligence) [Machine Learning] (Cloud Computing) [Proprietary Algorithms] (Manufacturing) ::icon(fa fa-industry) (Chemical Processes) [Titanium Dioxide] (Materials Science) [BPA-free Coatings] (Methods Used) ::icon(fa fa-key) (Insider Threats) [Employee Recruitment] (Academic Collaborations) (State-Directed Operations)

This mindmap illustrates the primary sectors and technologies targeted by Chinese economic espionage efforts based on the federal cases prosecuted over the past two decades. The pattern reveals a systematic focus on strategically important technologies with both commercial and military applications.

Growth Trend in Chinese Economic Espionage Cases (2000-2025)

This chart illustrates the significant increase in federal prosecutions related to Chinese economic espionage from 2000 to 2025. The data reveals a particularly sharp uptick following the establishment of the DOJ's China Initiative in 2018, with the 2021-2025 period showing continued aggressive enforcement despite the formal end of the program in 2022.

Key Legal Frameworks and Enforcement Initiatives

Legislation and Initiatives Targeting Economic Espionage

Several key legal frameworks have shaped the prosecution of these cases over the past two decades:

Legal Framework/Initiative	Year Established	Key Features	Impact on Prosecutions
Economic Espionage Act (EEA)	1996	Criminalized the theft of trade secrets to benefit foreign entities	Provided the primary statutory basis for prosecutions
Defend Trade Secrets Act (DTSA)	2016	Created a federal civil cause of action for trade secret misappropriation	Expanded remedies beyond criminal prosecutions
DOJ China Initiative	2018-2022	Focused DOJ resources specifically on Chinese economic espionage	Significantly increased prosecution numbers
National Defense Authorization Acts	Various	Enhanced penalties and reporting requirements	Strengthened deterrent effects
Foreign Investment Risk Review Modernization Act	2018	Expanded CFIUS authority to review foreign investments	Added preventative measures against technology transfer

Video Overview: China's Corporate Spy War

This CNBC documentary segment provides valuable context on the broader pattern of Chinese economic espionage cases and their impact on U.S. businesses and national security:

The video examines how Chinese corporate espionage has evolved over the past two decades and provides context for many of the federal cases discussed in this summary.