China Steals Secrets, Then Uses Them for Profit

One of the steps we miss when we think of the theft of trade secrets by China is how those are being used to benefit Chinese industry.  They don't just steal this stuff for fun.  A case in Tennessee tells how that is done. 

"Details of the conspiracy are included in the indictment on file with the U.S. District Court.  The indictment alleges that You, Liu, and a third co-conspirator formulated a plan in which You would exploit her employment with the two American employers to steal trade secrets and provide the information for the economic benefit of trade secrets the Chinese company that Liu managed, which would manufacture and profit from products developed using the stolen trade secrets.  In exchange, Liu would cause the Chinese company to reward You for her theft, by helping her receive the Thousand Talent and another financial award, based on the trade secrets she stole, and by giving You an ownership share of a new company that would “own” the stolen trade secrets in China.  The conspirators also agreed to compete with U.S. and foreign companies, including some of the owners of the stolen stolen trade secrets, in China and elsewhere, by selling products designed, developed and manufactured using the stolen trade secrets.

So, it appears the charges outline several things:  (1) the Chinese are knowingly stealing trade secrets and paying people to do it (2) they file Chinese patents on things they steal (3) they use the stolen information to build new items based on the Chinese patents.  I wrote about this in my first book, some 10 years ago.  They haven't stopped and no agreements are going to stop it any time soon.