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Squawk Pod

CNBC SPECIAL: China's Corporate Spy War Part 3

Squawk Pod

CNBC

Business News, News, Investing, Business

4.2543 Ratings

🗓️ 6 February 2024

⏱️ 22 minutes

🧾️ Download transcript

Summary

Episode 3, Catching a Spy: CNBC’s Eamon Javers reveals the fate of Xu Yanjun, the spy from China that targeted GE and one of its engineers.  He also talks to the leaders of the Senate Intelligence Committee, FBI Director Christopher Wray and China experts to find out what key U.S. industries are in the crosshairs of China’s plans for global economic domination and what risks this poses to U.S. businesses.  He also explores the fallout to the Chinese American community from a Department of Justice program initiated in 2018 to investigate cases of U.S. technology theft by the Chinese government.  Javers also finds out that the federal investigation into Xu Yanjun led to a surprising discovery.----CNBC Documentaries examines the case of a Chinese government spy who tried to steal trade secrets from some of America’s biggest companies, including GE, Boeing and Honeywell. Correspondent Eamon Javers talks with prosecutors, intelligence experts and government officials, including the Director of the FBI, Christopher Wray — all of whom say the case is an example of China’s desire to dominate global markets through any means necessary, including stealing technology from the heart of corporate America. In this special podcast series, Javers explores the shadowy world of spies and the industrial battle space that has millions of U.S. jobs on the line. “China’s Corporate Spy War” originally aired on CNBC in June 2023. To watch China's Corporate Spy War and other CNBC Documentaries go to: https://www.cnbc.com/documentaries/

Transcript

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0:00.0

I'm Aaman Javers and this is part three of China's corporate spy war, a special

0:09.0

C. NBC podcast. Act 4, China's Master Plan. cast.

0:12.8

Act 4, China's master plan.

0:18.0

It's March 2018 and Shuyen-June, the spy from China's Ministry of State Security, arrives in Europe.

0:24.6

He arranges to meet with the GE Engineer at a cafe in downtown Brussels, and he has told the

0:29.8

engineer to bring his company laptop.

0:32.3

For Shu, this is an enormous risk,

0:35.0

but it's balanced by the scale of the potential reward.

0:38.0

One of the federal prosecutors in the case,

0:40.0

Emily Gladfelter, explains that Shoe's outlook was long term.

0:45.2

He believed he was going to coopt them and they would have a partnership or a relationship where this person would provide information going forward for a long time.

0:56.0

Former U.S. intelligence official Bill Avenina says China's ultimate ambitions are even bigger than just stealing GE's secrets.

1:03.0

Their goal is to not only have their own new airline capability,

1:07.0

but they want to take over Airbus in Boeing.

1:10.0

Take over.

1:11.0

Because they know they can manufacture this plane at 30 cents on the dollar and sell it cheaper on the global market

1:16.8

So it's not just steel it's steel and then subsidize

1:21.2

But it's not just the theft, it's what happens after that.

1:24.0

The big damage is that that U.S. company could probably have four to six manufacturing plants in the U.S.

1:30.0

and hire 100,000 people.

1:32.0

That's the whole in the US economy.

1:34.0

That is the long-term existential threat is that those companies don't get to make plants and hire people.

...

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