US sanctions Chinese firms over allegations of Google tech theft

A Chinese former software engineer, previously jailed in the US for stealing trade secrets from search engine giant Google, has prompted fresh sanctions.

The US recently added five companies connected to him to the sanctions list.

Beijing has urged Washington to cease its defamation, warning it will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.

On Monday, the US State Department sanctioned five companies linked to Chinese national Ding Linwei, a former Google engineer, on the grounds of "theft of trade secrets" under the Protecting American Intellectual Property Act.

US officials stated during his tenure at Google, Ding was involved in designing AI technology and supercomputing data systems.

Prosecutors previously accused him of stealing AI technology from Google to use in a startup venture in Beijing.

In January this year, a federal court in San Francisco found him guilty on seven counts of theft of trade secrets and seven counts of economic espionage. The court later dismissed the latter charges and sentenced him to 12 months in prison for stealing trade secrets.

Among the five companies sanctioned by the Department of State is Shanghai Zhisuan Technology, which was founded by Ding in 2023. He claimed the company possessed the capability to replicate certain Google AI technologies to develop a software platform for deep machine learning.

US authorities determined Zhisuan was involved in, or benefited from, the theft of US trade secrets.

Another entity sanctioned by the US is MiraclePlus, a Beijing-based investment firm that provided funding to Zhisuan in exchange for equity.

US officials believe Ding claimed, through MiraclePlus, that he could adapt Google's technology to suit Chinese domestic conditions.

In Beijing, the Ministry of Commerce stated on Tuesday evening the US hype surrounding the alleged "theft of trade secrets" defames Chinese enterprises and damages their legitimate rights and interests, characterising it as an egregious move that China firmly opposes.

A Ministry spokesperson emphasised the rapid development of China's AI enterprises is beneficial to the well-being of both China and the world, and has nothing to do with the alleged "theft of trade secrets".

China urges the US to promptly correct its erroneous actions, cease its defamation, and foster a fair-competition market environment, warning China will otherwise take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.