Former Engineer Convicted after Textbook Example of Industrial Espionage
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A federal jury convicted a former general electric power engineer of conspiracy to commit economic espionage. The decision followed a four-week jury trial.\\xa0
The offender, Xiaoqing Zheng, worked at GE Power & Water in Schenectady, New York as an engineer specializing in sealing technology.\\xa0
Evidence showed Zheng, and others in China, conspired to steal GE\\u2019s trade secrets regarding its steam and gas turbine technologies. They intended to benefit from China-based companies that research, manufacture and develop parts for turbines.\\xa0
The arrest took place in 2018, and when Zheng was indicted in 2019, federal prosecutors called his actions \\u201ca textbook example\\u201d of industrial espionage.\\xa0
The indictment featured 14 counts and said Zheng used files to obtain proprietary information and email it to his business partner and nephew, Zhaoxi Zhang. Prosecutors added that the two got financial support from the Chinese government and coordinated with government officials to reach research agreements with state-owned Chinese institutions to develop turbine technologies.\\xa0
However, the jury acquitted Zheng of two counts of trade secret theft and two counts of economic espionage. The jury could not reach a verdict on seven other counts involving trade secret theft, economic espionage and lying to the FBI.\\xa0
As far as the impact of Zheng\\u2019s actions, Assistant Director Alan E. Kohler Jr. of the FBI\\u2019s Counterintelligence Division said, \\u201cGood paying jobs could be lost and communities can suffer. These actions help China become more of a threat to our national security.\\u201d
Zheng's sentencing is scheduled for August 2. He faces up to 15 years in prison, a term of supervised release of up to three years and a fine of up to $5 million.\\xa0
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