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U.S. spy guilty of illegal export to PRC
Taiwan News ^ | 2003-11-28 | The Associated Press

Posted on 11/29/2003 10:47:46 AM PST by Willie Green

For education and discussion only. Not for commercial use.

A human rights activist whom the U.S. government helped free from a Chinese prison in 2001 pleaded guilty Wednesday to illegally sending US$1.5 million worth of high-tech items to China.

Gao Zhan entered the plea in federal court, to one count of unlawful export and another count of tax evasion. Her husband, Xue Donghua, also pleaded guilty to tax evasion.

Gao, a permanent U.S. resident, was arrested by Chinese authorities in February 2001 and convicted of spying for Taiwan. She was released after five months in jail under intense pressure from the U.S. government and worked until spring 2002 as a researcher at American University here.

According to federal prosecutors, from August 1998 through 2001 Gao ran Technology Business Services, a business specializing in exports of technology to China. The exports were made to Chinese companies tied to "institutes" which perform research and development for the Chinese government, including the Chinese military.

Among the items sent to China were microprocessors that can be used in digital flight control and weapons systems, including identification of targets. Although these microprocessors also have commercial uses, they cannot be exported without permission of the U.S. government.

Gao was paid US$1.5 million by China for the microprocessors and other items, but prosecutors say she and her husband did not report most of the income on their tax returns.

Gao faces a maximum of 37 months in prison, with her husband facing up to a year in prison and a fine of up to US$100,000.

Prosecutors say they will ask for a reduced sentence because Gao has been working with the U.S. government to identify people in the Chinese government who are seeking to import sensitive American goods.

Gao was one of several Chinese-born academics, writers and entrepreneurs with ties to America who were detained in 2001 by China, contributing to tense U.S.-Chinese relations at the time.

Her release was secured in part by direct intervention from President George W. Bush in a phone call to then Chinese President Jiang Zemin and came only a few days before Secretary of State Colin Powell was due to visit Beijing.

U.S.-China relations also were strained in 2001 when a Navy spy plane collided with a Chinese fighter over the South China Sea and was forced to make an emergency landing. China finally released the plane to the U.S. after three months, enough time to possibly remove some sensitive equipment.


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: china; clintonlegacy; espionage; gaozhan; globalism; hightech; nationalsecurity; yearoftherat
Bush's Brother Has Contract to Help Chinese Chip Maker
1 posted on 11/29/2003 10:47:46 AM PST by Willie Green
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To: Willie Green
Also posted:

http://www.freerepublic.com/focus/f-news/1030143/posts
2 posted on 11/29/2003 10:59:27 AM PST by Dr. Marten
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To: Willie Green
I smell the residual fouling of the Clintoons.
3 posted on 11/29/2003 11:21:11 AM PST by BenLurkin (Socialism is Slavery)
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