A Chinese-born American chemist was found guilty on April 22 for her role in a scheme to steal trade secrets worth an estimated $120 million from American companies for the purpose of setting up a Chinese company that would manufacture the product for the global market.
The trade secrets cost nearly $120 million to develop, and were stolen from major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, prosecutors said. You’s role as a principal engineer for global research for Coca-Cola from December 2012 to August 2017 and later as a manager at Eastman Chemical Company from September 2017 to June 2018 allowed her access to these coating companies’ BPA-free technology.
You stole the trade secrets to help establish a new BPA-free coating company in China, prosecutors said. She had two co-conspirators, Liu Xiangchen, a 63-year-old man from eastern China’s Shandong Province, and an unnamed relative of Liu, according to the department. Liu, who was indicted at the same time as You in February 2019, formed the plan to bring You’s stolen technology to China, where Liu would set up and manage a firm that would develop BPA-free packaging. In return, Liu promised You an ownership share in the new company, prosecutors said.
The report also said that Weihai Jinhong Group sponsored You in her application to join the “Thousand Talents Plan” in 2018, through which she was to be rewarded 3 million yuan ($443,000) from the central government, Shandong provincial government, and Weihai City government for bringing her stolen BPA-free technology to China. At the same time, the production line also received 50 million yuan ($7.4 million) in funding from those governments, the report said.
The “Thousand Talents Plan” is a Chinese-state-sponsored recruitment program designed to entice foreign experts to work in the country. This program, and other similar Chinese plans, have drawn intense scrutiny from the U.S. government over its role in facilitating the transfer of intellectual property to China.
Prosecutors said evidence, including You’s Thousand Talents application documents, presented at the trial showed You’s intention to benefit not only Weihai Jinhong Group, but also the Chinese Communist Party (CCP).
This case is the latest in a raft of prosecutions targeting Chinese state-sanctioned theft of American intellectual property in recent years.
You is due to be sentenced on Nov. 1.