Chinese-American engineer charged with stealing US$120 million worth of trade secrets
- You Xiaorong, 56, of Lansing, Michigan indicted for theft of formulations for bisphenol-A-free coatings used in food, drinks cans
- Chinese national Liu Xiangchen, 61, and relative named as co-conspirators
A Chinese-born American engineer has been charged in the United States with trying to steal trade secrets worth an estimated US$120 million relating to the manufacture of food and drinks cans with the aim of setting up a rival venture in China through a Beijing-backed programme that is coming under increased scrutiny.
You Xiaorong, 56, of Lansing, Michigan, was charged with conspiracy to steal secrets related to formulations for bisphenol-A-free (BPA-free) coatings, according to a document released by the US Department of Justice. Scientists have shown BPA to be potentially harmful to people’s health.
Chinese national Liu Xiangchen, 61, and an unnamed relative of his were charged with conspiring with You to steal the formula and take it to China.
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Liu wanted the technology for his company, which was planning to develop BPA-free packing, according to the charge document.
You is accused of using her position while working for a company in Atlanta, Georgia and another in Tennessee to steal the secrets, which are thought to have cost almost US$120 million to develop. The Wall Street Journal reported that the company was Coca-Cola.
From 2012 to 2017, You was employed as principal engineer for global research by the company in Atlanta, which had agreements with other firms to conduct research and development, testing, analysis and review of BPA-free technologies.
From 2017 to 2018, she was employed as a packaging application development manager for a company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to that company.
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You was indicted on seven counts of theft of trade secrets and one count of wire fraud, according to the justice department document.
US assistant attorney general John Demers said You planned to set up a company in China, transferring the technology to that company through the “Thousand Talents” programme, which was set up in 2008 to attract people to work in China, particularly in hi-tech areas.
The programme has been under close scrutiny in the US over concerns it is a state-sponsored scheme to steal technology. The US Energy Department said earlier this month it would ban its scientists from taking part in that programme and others like it that pay scientists working abroad to take information back to China, The Wall Street Journal reported.
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“China continues to use its national programmes, like the ‘Thousand Talents’, to solicit and reward the theft of our nation’s trade secrets and intellectual property, but the Justice Department will continue to prioritise investigations like these, to ensure that China understands that this criminal conduct is not an acceptable business or economic development practice,” Demers said.
According to the charges, Liu planned to help You receive funding under the Thousand Talent and other financial award programmes, based on the trade secrets she stole. Liu also allegedly promised You a share in a new company in China that would use the stolen information.
Coca-Cola did not immediately respond to requests for comment.
