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Friday, February 11

Chinese Spying Activities in Canada

National Post
China uses visiting students, scientists, business people and delegations to obtain industrial secrets and high-technology that will benefit Chinese companies and its military-industrial complex, said the source, who asked not to be identified for national security reasons.

Russian intelligence services have also sought to obtain Canadian technology, which led to the 1996 arrest of two of their agents.

However, the official said China has been the most enterprising in using clandestine or coercive activity to gain access to economic and military intelligence. China has targeted Canada's nuclear, aerospace, biotechnology, mining and metallurgy, environmental and oil and gas sectors.

Beijing's China Defence Science and Technology Information Centre is the key collector of Canadian and foreign technology, and is part of the Chinese military's General Equipment Department (GED).

According to a 2003 Pentagon report, China's GED oversees a "complex web of factories, institutes and academies that are subordinate to China's nuclear, aeronautics, electronics, ordnance, shipbuilding and astronautics industries."

"Each of these institutions has an import/export corporation to facilitate the import of technology and knowledge," the report added.

Wenxng Zuo of the Chinese embassy in Ottawa strenuously denied yesterday China has engaged in espionage in Canada to gain secrets for economic and military use.

"No, it's not true," she said.

Paul Martin is about to embark on a 10-day trip to Asia that includes stops in Beijing and Hong Kong. Jim Peterson, the International Trade Minister, will also lead a trade mission to China at the same time.

The Prime Minister, whose family's shipping company has built ships at low-wage Chinese shipyards, is under pressure from the opposition and some Liberal backbench MPs to reject China's takeover of Noranda, one of Canada's biggest mining firms.

Noranda is in talks to be acquired by China Minmetals Corp, a metals producer controlled by the Chinese government, which wants to buy 100% of the $6.7-billion mining giant.


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