Among the cases cited by the intelligence reports, is the predicament of a top researcher in a major French pharmaceutical company wined and dined by a Chinese girl who he ended up sleeping with. "When he was shown the recorded film of the previous night in his hotel room ... he proved highly co-operative," said an economic intelligence official. In another case, an unnamed French company realised too late that a sample of its patented liquid had left the building after the visit of a Chinese delegation. It turned out one of the visitors had dipped his tie into the liquid to take home a sample in order to copy it. French companies should do more to protect themselves from prying eyes among the 30,000 Chinese students who conduct internships in France, warned experts. Among the most frequent techniques cited by French intelligence was the so-called "lamprey technique", which usually takes the form of an international tender for business.
"The aim of the project is to attract responses from developed countries," notes the report. When Western companies vie to respond, they are cajoled and "told to improve their technical offering".
"Each (company) tries to outdo the other, once, twice, several times until the Chinese consider they've had enough." Once key information has been gathered, the competing bidders are summarily informed that the project has been shelved and the information used by the Chinese to develop its own products.
A prime example of this technique was recent a multi-billion pound tender to build China's high-speed train, with France's TGV being a bidder. As part of the process, the French embassy in Beijing organised a six-month training course for Chinese engineers. A few months after the course, China brought out its own high-speed train remarkably similar to the TGV and Germany's ICE train.
Another technique is the "mushroom factory", in which French industries create a joint venture with a local Chinese firm and transfer part of their technology. Soon afterwards, the French "discover that local rivals have emerged ... offer identical products and are run by the Chinese head of the company that initiated the joint venture." Danone, the French dairy and drinks group allegedly fell foul of this technique when it teamed up with the Chinese drinks giant, Wahaha.
A third technique is to turn the tables on a foreign firm by accusing it of counterfeiting. Schneider Electric was taken to court over a 5mm hook in its fuse box, which it patented in 1996. Nonplussed, its Chinese rival Chint started building the same hook, took Schneider to court in China for copying its design and Schneider was ordered to pay a 330 million yuan fine.
The revelations on Chinese spying techniques came as Renault, the French carmaker is embroiled in a massive espionage scandal involving three top executives over allegations they were paid to hand over car secrets to a Chinese firm. French intelligence officials were reportedly furious the part state-owned company had not asked for its help.
France is drawing up a guide of good practice for French entrepreneurs. One of the rules is never hold meetings with Chinese delegations in rooms where sensitive briefings take place: they could subsequently be bugged.
"Espionage or information gathering is not a risk that French executives take seriously," said Christian Harbulot, head of the School of Economic Warfare in Paris. "They are thus very vulnerable."
"Each (company) tries to outdo the other, once, twice, several times until the Chinese consider they've had enough." Once key information has been gathered, the competing bidders are summarily informed that the project has been shelved and the information used by the Chinese to develop its own products.
A prime example of this technique was recent a multi-billion pound tender to build China's high-speed train, with France's TGV being a bidder. As part of the process, the French embassy in Beijing organised a six-month training course for Chinese engineers. A few months after the course, China brought out its own high-speed train remarkably similar to the TGV and Germany's ICE train.
Another technique is the "mushroom factory", in which French industries create a joint venture with a local Chinese firm and transfer part of their technology. Soon afterwards, the French "discover that local rivals have emerged ... offer identical products and are run by the Chinese head of the company that initiated the joint venture." Danone, the French dairy and drinks group allegedly fell foul of this technique when it teamed up with the Chinese drinks giant, Wahaha.
A third technique is to turn the tables on a foreign firm by accusing it of counterfeiting. Schneider Electric was taken to court over a 5mm hook in its fuse box, which it patented in 1996. Nonplussed, its Chinese rival Chint started building the same hook, took Schneider to court in China for copying its design and Schneider was ordered to pay a 330 million yuan fine.
The revelations on Chinese spying techniques came as Renault, the French carmaker is embroiled in a massive espionage scandal involving three top executives over allegations they were paid to hand over car secrets to a Chinese firm. French intelligence officials were reportedly furious the part state-owned company had not asked for its help.
France is drawing up a guide of good practice for French entrepreneurs. One of the rules is never hold meetings with Chinese delegations in rooms where sensitive briefings take place: they could subsequently be bugged.
"Espionage or information gathering is not a risk that French executives take seriously," said Christian Harbulot, head of the School of Economic Warfare in Paris. "They are thus very vulnerable."
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