Bay Area Residents Accused of Economic Espionage for Chinese Companies
| Sell our trade secrets ... that's one way to ensure China's economy surpasses the U.S. |
According to the indictment, China decided that it wanted to develop chloride-route titanium dioxide (TiO2) production capabilities, without investing the time and research. TiO2 is a commercially valuable white pigment used to color paint, plastics, and paper. To quickly pave the way for this development, companies controlled by China conspired to illegally obtain the TiO2 technology that had already been developed by the U.S.-based E.I.du Pont de Nemours & Company, also known as DuPont.
The companies used their employees, who obtained the TiO2 trade secrets and then allegedly sold trade secrets to the Pangang Group to help it develop large-scale chloride-route TiO2 production in China, including 10,000 planned factories.
In exchange, the companies and their employees received in excess of $20 million, according to the indictment.
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