The Spy Hunter #92
Two Chinese companies indicted for conspiracy to steal X-ray tube technology from US.
February 18, 2025
Welcome to The Spy Hunter newsletter!
In this week’s edition:
Two Chinese companies are indicted in the U.S. for conspiring with former Philips Medical Systems employees to steal proprietary X-ray tube technology.
The U.S. House Committee on Homeland Security releases an updated “China Threat Snapshot,” detailing over 60 cases of CCP espionage on U.S. soil in the past four years.
🔎Economic Espionage Case of the Week
What happened?
According to a U.S. federal indictment, two Chinese companies, Kunshan GuoLi Electronic Technology and Kunshan Yiyuan Medical Technology, conspired with former Philips Medical Systems employees to steal proprietary X-ray tube technology. The indictment alleges that Chih-Yee Jen, a former Philips engineer, copied trade secrets before leaving the company and shared them with his new employer, a rival X-ray tube company backed by Kunshan GuoLi. Two other former Philips employees allegedly used the stolen information in their work for the new company. The defendants, along with the Chinese firms, face charges of conspiracy to unlawfully possess trade secrets, while an arrest warrant has been issued for a Kunshan GuoLi vice president, Xiaoqin Du.
Why does it matter?
X-ray tubes are critical components in medical imaging machines, which are essential for biopharma research, such as drug development and precision medicine. For China, biopharma is a strategic industry, as the country aims to reduce its reliance on foreign medical technologies and compete globally in pharmaceuticals and medical devices. Stealing advanced X-ray tube technology allows companies to bypass years of R&D, gaining a competitive edge in the global medical imaging and biopharmaceuticals.
🌏Around the region
China
The U.S. House Committee on Homeland Security released an updated “China Threat Snapshot,” detailing over 60 cases of CCP espionage on U.S. soil in the past four years, including trade secret theft.
The report highlights China’s expanding efforts to undermine democracy, silence dissent, and conduct espionage in the U.S. and warns that these threats are rapidly evolving and becoming more aggressive.
📖Best reads of the week
Europe Could Be Supporting Russia’s War via ‘Seven Sons’ Partnerships - Jamestown Foundation
European policymakers and academic institutions exhibit a persistent lack of urgency regarding the implications of such collaborations. Unlike the United States, which has taken some proactive measures to restrict academic exchanges with PLA-affiliated institutions, Europe’s approach remains largely permissive. Emphasis on open research and innovation and the assumption that scientific progress exists in a geopolitical vacuum exposes it to strategic vulnerabilities. This is increasingly untenable in a world where technology is a cornerstone of great power competition.
📣Upcoming Events
19 February. EU-US Cooperation on Trade and Economic Security: A Conversation with Maroš Šefčovič - AEI. 1:15 PM ET [in person and online]
AEI’s Michael R. Strain and Stan Veuger welcome Maroš Šefčovič, European commissioner for trade and economic security, for a conversation about economic security, trade policy, and EU-US cooperation.
🗣️Job Opportunities
Critical Minerals Editor - The China Global South Project (South Africa)
Research Analyst - Center for Naval Analyses (Washington DC)
📰In Other News
Economic Espionage
New Chinese Hacking Campaign Targets Manufacturing Firms to Steal IP - Infosecurity Magazine
Chinese Companies’ New Tactic to Stop Damaging Research: Legal Threats - The New York Times
Geopolitical risk
AI at a Geopolitical Crossroads: The Tension Between Acceleration and Regulation - The United States Institute of Peace
Science and geopolitics: Three experts on how AI, innovation and research are affected by global competition - LeMonde
Economic Security
Trump’s National Security Tariffs - CFR
Economic coercion tests international organisations - ASPI
MI5 investigates use of Chinese green technology in UK - Financial Times
Technology
Creating a modernized defense technology frontier - McKinsey and Company
Broadcom, TSMC Weigh Possible Intel Deals That Would Split Storied Chip Maker - The Wall Street Journal
US-China relations
Cyber Wars: Confronting China's Digital Threat - Hoover Institution
Europe steps-up AI investment to counter fierce US-China competition - EURACTIV
America’s rivalry with China will intensify, but must not escalate into war, writes Nicholas Burns - The Economist
🛜Around the Web
Thank you for reading!
If you would like to leave a comment, ask a question, or make a suggestion, please post a reply below, email me at benforney@thespyhunter.org, or DM me on Twitter/X @ben_forney.
The Spy Hunter is the personal opinion of the author and is not legal advice. Any individual or organization mentioned is presumed innocent until proven guilty. Articles or other media featured on The Spy Hunter should not be taken as an endorsement by the author.
Cover image by DALL-E