Chinese firms hit with trade secret theft charges

Chinese firms hit with trade secret theft charges

Chinese firms hit with trade secret theft charges

In addition to the criminal case, the Justice Department filed a civil lawsuit seeking to prevent the two accused companies from exporting any products created using the trade secrets and blocking the further transfer of trade secrets.

The US Justice Department on Thursday charged a Chinese state-owned firm Fujian Jinhua Integrated Circuit Co and its Taiwan partner United Microelectronics Corp for allegedly stealing trade secrets from the US.'s largest memory-chip maker, Micron Technology Inc, Wall Street Journal has reported.

"Chinese economic espionage against the United States has been increasing - and it has been increasing rapidly".

The DOJ claims United Microelectronics Corporation and Fujian Jinhua Integrated Circuit - along with individuals Stephen Chen, JT Ho, and Kenny Wang - all conspired to steal the designs and plans for its DRAM chip operation from Micron.

The United States also sued on Thursday to block the transfer of trade secrets and to prevent the companies from exporting to the US any products that they manufacture by exploiting stolen information.

The new restrictions mean USA firms will need special approval to export products intended for use by state-owned Fujian Jinhua Integrated Circuit Company, Ltd., according to a statement.

If convicted, the defendants face up to 14 years in prison and $5 million in fines.

USA efforts to counter that espionage are multifaceted, Bowdich said.

The indictment came four months after Fujian Jinhua won a patent dispute with Micron in a Chinese court, gaining an order for the USA company to stop sales in China of more than a dozen solid-state drives, memory sticks and chips. Micron is the only US-based company that manufactures DRAM.

They are the latest in a long list of actions taken to fight what some in the Trump administration call China's cheating on the world economic stage through intellectual property theft, illegal corporate subsidies and rules hampering USA corporations that want to sell their goods in China.

The new initiative, Session said, would address two major responsibilities of the National Security Division: review of investments and licenses in the country's infrastructure and telecommunications; and counter covert efforts to influence leaders and the general public.

The US Justice Department has charged companies in China and Taiwan with stealing trade secrets from a US semiconductor company, as the government steps up efforts to combat what it contends is Chinese technology theft.

The Justice Department also will target Chinese threats to USA companies that provide components for sensitive technologies, especially those in the telecommunications sector as it readies for the transition to 5G networks. It wants to keep working with China without sharing key technologies.

Sessions noted that earlier this year U.S. Trade Representative Robert Lighthizer found that Chinese sponsorship of hacking into American businesses has gone on for more than a decade.

In the Micron case, according to USA prosecutors, the conspirators worked to fulfill a key Chinese national economic priority: the development of dynamic random access memory (DRAM) and other microelectronics technology.

"This initiative will identify priority trade theft cases and ensure we have enough resources dedicated to them", Sessions said.

The criminal case is US v.

It is the latest in a series of federal prosecutions targeting Chinese corporate espionage. The US has taken an increasingly tough and confrontational stance toward what it characterizes as China's "predatory" economic policies.

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