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Home Front
Activist pleads guilty to sending sensitive technology to China
2003-11-26
A human rights activist whom the U.S. government helped free from a Chinese prison in 2001 pleaded guilty Wednesday to illegally sending $1.5 million worth of high-tech items to China.
Oops!
Gao Zhan entered the plea in federal court in Alexandria, Va., to one count of unlawful export and another count of tax evasion. Her husband, Xue Donghua, also pleaded guilty to tax evasion. Gao, a permanent U.S. resident alien, was arrested by Chinese authorities in February 2001 and convicted of spying for Taiwan. She was released after five months in jail under intense pressure from the U.S. government and worked until spring 2002 as a researcher at American University here.
Gee, a Chinese researcher stealing sensitive technology. Who’d have thought that could happen?
According to federal prosecutors, from August 1998 through 2001 Gao ran Technology Business Services, a business specializing in exports of technology to China. The exports were made to Chinese companies tied to "institutes" which perform research and development for the Chinese government, including the Chinese military. Among the items sent to China were microprocessors that can be used in digital flight control and weapons systems, including identification of targets. Although these microprocessors also have commercial uses, they cannot be exported without permission of the U.S. government. Gao was paid $1.5 million by China for the microprocessors and other items, but prosecutors say she and her husband did not report most of the income on their tax returns.
IRS has them, they’re in real trouble now. Should have filled in block 64a: "Income from Spying".
Gao faces a maximum of 37 months in prison, with her husband facing up to a year in prison and a fine of up to $100,000.
Prosecutors say they will ask for a reduced sentence because Gao has been working with the U.S. government to identify people in the Chinese government who are seeking to import sensitive American goods.
Just keep her away from any male FBI agents.
Gao was one of several Chinese-born academics, writers and entrepreneurs with ties to America who were detained in 2001 by China, contributing to tense U.S.-Chinese relations at the time.
"Xue, this is Chinese Security. We have your wife, Gao. Send more microprocessors if you want to see her again."
Her release was secured in part by direct intervention from President Bush in a phone call to Chinese President Jiang Zemin and came only a few days before Secretary of State Colin Powell was due to visit Beijing.
Being jailed by China and released only after pressure from the President. You couldn’t buy a better cover story than that.
Posted by:Steve

#5  What's this?! A Chinese Espionage case that didn't involve American Intelligence agents dropping their pants - literally, that is. Figuratively speaking, this event fits the metaphor perfectly "getting caught with pants down, bent over...."

Then again, the woman looks kinda cute in the photos in my newspaper this morning...maybe there's a side to this that hasn't come to light yet.
Posted by: Tokyo Taro   2003-11-26 8:41:24 PM  

#4  A Chinese national caught spying for the US by the Chinese counter-espionage service would have been shot. It's a real shame she's only getting 3 years.
Posted by: Zhang Fei   2003-11-26 8:10:53 PM  

#3  A Chinese national caught spying for the US by the Chinese counter-espionage service would have been shot. It's a real shame she's only getting 3 years.
Posted by: Zhang Fei   2003-11-26 8:10:52 PM  

#2  Prosecutors say they will ask for a reduced sentence because Gao has been working with the U.S. government to identify people in the Chinese government who are seeking to import sensitive American goods.

And then what? Is the A.G. going to try to arrest these schmucks and put them on trial? Is the U.S. government going to refuse to do business with these individuals?

Seems to me that the Commerce Dept. (or whatever dept is in charge of technology exports) needs to wake up. China isn't just a "market", but is also a potential adversary.
Posted by: Bomb-a-rama   2003-11-26 4:24:00 PM  

#1  Woah! Lets see here....

I bet she only gets 1 year because she is turning on her former associates...so...

1 Year in Prison and be paid 1.5 million dollars (less 100K means 1.4 Mil).

Plus what she was paid by the U.S. Government while she was spying....

And they say crime doesn't pay.
Posted by: CrazyFool   2003-11-26 4:02:13 PM  

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