Feds Bust Chinese Firm's Hybrid Car Data Heist 203
coondoggie writes "An FBI investigation has led a Michigan couple to be charged with stealing hybrid car information from GM to use in a Chinese auto outfit. A federal indictment charged Yu Qin, aka Yu Chin, 49, and his wife, Shanshan Du, aka Shannon Du, 51, of Troy, Michigan with conspiracy to possess trade secrets without authorization, unauthorized possession of trade secrets, and wire fraud. One of the individuals was also charged with obstruction of justice, said Barbara McQuade, United States Attorney for the Eastern District of Michigan in a statement. GM estimates that the value of the stolen documents is over $40 million."
Competitive advantage for the USA? (Score:5, Insightful)
Umm, don't we want China to steal all the GM tech they possibly can, so they won't be competitive either?
just think of it as "proactive outsourcing" (Score:5, Insightful)
sooner or later this "secret" would have ended up at the chinese manufacturing plant.
Re:Oh noes (Score:5, Insightful)
For instance, Buick is a huge brand [wikipedia.org] in China
Re:Must have been for export (Score:4, Insightful)
http://www.usatoday.com/money/autos/environment/2008-05-11-hybrids-gas-prices_N.htm
I've owned a 2006 Civic Hybrid for the past four years and calculate the savings based on my driving habits and the cost of gas every year. It recouped its cost over a year ago and has currently saved me well over $1000. It also pollutes less. So...why is this a joke?
Re:Oh noes (Score:2, Insightful)
I assume that you are unaware of how important the Chinese market is for GM. Here is a recent article about it: China sales overtake U.S. for first time [suntimes.com]. Chinese car companies don't have to come over here, they can hurt GM at home.
And $40 million dollars doesn't seem unreasonable. That's only about 2000 vehicles at average US prices.
Re:Oh noes (Score:1, Insightful)
Contrary to the opinion of the ignorant masses in the USA, the universe does not revolve around Old Glory. The Chinese companies that may have received these stolen secrets need not export a single automobile to make $40 million worth of documents worth a hell of a lot more (to them), as their own domestic sales potential is huge.
And of course, the Chinese won't stop there, either. From China, this data will be available to any third-party with the right amount of cash (or other considerations), even countries at the raw end of an American embargo or trade restrictions, such as North Korea, Cuba, various others in Middle East and Africa, etc. China doesn't give a damn who America doesn't want to do business with so long as they continue to import all those cheap Chinese-made trinkets and electronics goods.
Not Patents (Score:4, Insightful)
This story is tagged "patents", but it's not about patents. The copied data was a trade secret. Patents are by definition publicly published information. Trade secrets are different. Patents are easily abusable government monopolies that often violate free speech. Actual industrial secrets are essential to remaining competitive, as this case demonstrates. It's cheaper, faster and less risky for a Chinese (or any other) corporation to copy the data that GM (or anyone else) produced over a period of time and at a significant cost, than it is for that competitor to produce its own. The secret was violated by violating agreements and other deception.
Re:Must have been for export (Score:3, Insightful)
...and that means that the manufacture and disposal slash recycling are processes that use no nasty chemicals? I really doubt it.
But sure, as long as you can say the word "recycling" that means everything's okay, regardless of how efficient or clean the process is.
Re:I dont understand.... (Score:5, Insightful)
Re:Must have been for export (Score:4, Insightful)
Re:I dont understand.... (Score:5, Insightful)
they flew all the way from China to America to steal hybrid plans.
They could have just gone to Japan and stole from Toyota, much closer to home....
In America, hiring Chinese people is not unusual. In Japan, it is. Americans view racism as a very bad thing, mostly due to our history of slavery. Japan is not the USA.
Why not just wait... (Score:4, Insightful)
Re:Must have been for export (Score:3, Insightful)
And what would the mileage be like in the same car with a small turbo diesel?
Ahem! (Score:5, Insightful)
Asians eh? Warning, you prejudice might be showing. I'm an "Asian" but I am not offended by your comment. This is because, until very recently in human history, copying what others created is the norm. Be it in language, music, food, vehicles or weapons. You after all got the Chinese to thank for gunpowder, among other things. I don't recall Europeans paying the Chinese any royalties on that.
Re:Not Patents (Score:3, Insightful)
If that were true, there would be no issues with distributing and selling patented software, only running it.
Re:Must have been for export (Score:3, Insightful)
Bit of a joke? What exactly would that be?
The joke is that hybrids get no more mileage than TDIs, but have a higher initial energy cost of production, and a higher initial monetary cost, AND a higher recycling cost, while their fuel (gasoline) takes more energy to produce than diesel fuel. If non-plug-in gas hybrids are the answer then the question was fucking stupid. No matter how you slice it, a hybrid is NOT the most efficient solution readily available on the market today.
Re:Oh noes (Score:3, Insightful)
The "L" and "R" sounds in Chinese are different than in English (or don't exist?), so Chinese people have difficulty pronouncing English words with those sounds in. That's the joke (look at the names he listed again).
English speakers have a similar difficulty with Scottish Gaelic words, because Gaelic has 3 different "L" sounds and 3 different "R" sounds (used to have 4, but one has been dropped). They get a bit tongue-tied when trying to pronounce these words.