Another Theft of Source Code by China

I showed several high profile examples of source code theft from US companies by the Chinese in my first and third books, and I didn't imagine that they would stop doing that since source code allows them to bypass the long development cycles for good software and use someone else's work.  Although the Justice Department doesn't mention the name of the company or the type of software, by all indications Xu Jiaqiang, who has a LinkedIn profile, and the indictment brought in White Plains New York, near IBM's headquarters, we probably don't have to look too far for the home of the source code.  Xu is a self-proclaimed Linux guru and  did various aspects of storage management at IBM.

Here we have another example of a Chinese National in the U.S working for a US business, stealing from the business and sending the information home to China.  We have had more than enough of this kind of theft in recent years.  It makes me wonder why we bring in Chinese national technicians and allow them access to sensitive code that needs to be protected.  If I were a business manager again, I certainly would think twice about hiring a Chinese national for a job in the US, yet thousands of them are employed and travel back and forth to China on a regular basis.  They still hold Chinese passports, yet while anyone that disagrees with the government's policies will not be allowed to travel, these people do it all the time.  They have safe-havens in China called joint ventures that are 51% owned and controlled by Chinese nationals, that allow them to exchange information with their business friends.  The Chinese set these arrangements up to make sure there is information exchange between business partners they control and US businesses.  It is a lopsided agreement that gives them easy access to business secrets.

I have repeatedly asked for reciprocity in Chinese relations.  If they are going to allow and encourage Chinese controlled joint ventures, then we need to do the same thing.  We will allow US subsidiaries, divisions and joint ventures to operate here without having a US national's in control, or forcing the exchange of technology with Chinese companies.  IBM has been in China for a long, long time and knows the score in this game.  How many more of these people have they brought to the US?