President Jiang Zemin gets an update on China´s Terfenol-D project. The U.S. Navy spent millions of dollars to develop Terfenol-D in the early 1980s, and intelligence experts estimate that the People's Republic of China (PRC) has devoted extensive resources to try to steal it. Insight has learned that these PRC efforts have paid off. The spy target is an exotic material made up of two types of rare-earth metals called lanthanides, terbium and dysprosium, plus iron (FE). The NOL stands for Naval Ordnance Laboratory. Hence the name Terfenol-D. Those who have worked with this exotic material call it almost magical....