China Protests US Sanctions on Firms Tied to Ex-Google Engineer
Beijing condemns U.S. penalties on five Chinese companies linked to an individual accused of intellectual property theft.
Beijing on Tuesday voiced strong opposition to U.S. sanctions placed on five Chinese companies connected to a former Google engineer accused of intellectual property theft, stating the move “severely harms the legitimate rights and interests” of Chinese businesses.
The U.S. State Department imposed sanctions on the companies, which are linked to Linwei Ding, who founded Shanghai Zhisuan Technology. The department alleges Ding touted his experience with Google and claimed his company could replicate Google's super intelligence infrastructure technology.
According to the State Department, the startup incubation program MiraclePlus, which was sanctioned along with Zhisuan, provided seed capital for Zhisuan in exchange for an ownership stake. Three other Chinese entities facing penalties are also connected to MiraclePlus.
"Zhisuan has knowingly engaged in, or benefitted from, significant theft of trade secrets of United States persons, which occurred on or after January 5, 2023," the State Department stated.
Ding was charged in 2024 with stealing artificial intelligence trade secrets from Google while secretly working with two companies in China. A federal jury in San Francisco convicted him on several counts of economic espionage and theft of trade secrets in January. A judge later dismissed the economic espionage charges, and Ding was sentenced to 12 months in prison. The Justice Department is appealing the dismissal of the economic espionage charges.
China’s commerce ministry asserted that the country’s AI development is the result of long-term investment in basic research and continuous innovation, emphasizing independent scientific and technological advancement and open cooperation. The ministry stated that China's achievements in AI have “nothing to do with the so-called ‘stealing of trade secrets.’”
Beijing urged the U.S. to “correct its erroneous practice” and indicated that China would take “necessary measures,” though specific actions were not detailed.