DTN News - CHINA DEFENSE NEWS: China Celebrates Another Grand Theft

DTN News - CHINA DEFENSE NEWS: China Celebrates Another Grand Theft

(NSI News Source Info) TORONTO, Canada - January 5, 2013: China has officially revealed its copy of the Russian Su-30MK2 and is calling it the J-16, claiming that the aircraft is of Chinese design. Many unauthorized pictures of the J-16 have shown up in the past year. These made it clear that the J-16 was a copy of the Russian Su-30MK2. At least 24 J-16s have been built and are being delivered to the Chinese Navy.

 

Russia and China jointly developed the two seat version of the Su-30, as the Su-30MKK in the late 1990s, and, a decade ago, an upgraded version (the Su-30MK2). China has received about a hundred legal Su-30MK2s but now nearly identical J-16s are showing up. Russia is not amused or fooled.

This kind of blatant technology theft is nothing new. The Chinese J-11 jet fighter is an illegal Chinese copy of the Russian Su-27. This plagiarism has been a source of friction between Russia and China for nearly a decade. It all began, legally, in 1995, when China paid $2.5 billion for the right to build 200 Su-27s. Russia would supply engines and electronics, with China building the other components according to Russian plans and specifications. But after 95 of the Chinese built aircraft were built Russia cancelled the agreement. They claimed that China was using the knowledge acquired with this Su-27 program to build their own copy of the Su-27, the J-11. Russia kept the piracy issue quiet for as long as it could and warned the Chinese that simply copying Russian technology would produce an inferior aircraft. Apparently the Chinese did not agree and are continuing their work on the J-11, using only, what they claim, is Chinese technology.

(Read complete story on Defense-Technology News - Click on link undermentioned)

http://defense-technologynews.blogspot.ca/2013/01/dtn-news-china-defense-news-china.html

DTN News - DEFENSE & INTELLIGENCE NEWS: China's Cyber Thievery Is National Policy—And Must Be Challenged

DTN News - DEFENSE & INTELLIGENCE NEWS: China's Cyber Thievery Is National Policy—And Must Be Challenged

 (NSI News Source Info) TORONTO, Canada - February 5, 2012:Only three months ago, we would have violated U.S. secrecy laws by sharing what we write here—even though, as a former director of national intelligence, secretary of homeland security, and deputy secretary of defense, we have long known it to be true. The Chinese government has a national policy of economic espionage in cyberspace. In fact, the Chinese are the world's most active and persistent practitioners of cyber espionage today.

Evidence of China's economically devastating theft of proprietary technologies and other intellectual property from U.S. companies is growing. Only in October 2011 were details declassified in a report to Congress by the Office of the National Counterintelligence Executive. Each of us has been speaking publicly for years about the ability of cyber terrorists to cripple our critical infrastructure, including financial networks and the power grid. Now this report finally reveals what we couldn't say before: The threat of economic cyber espionage looms even more ominously.

The report is a summation of the catastrophic impact cyber espionage could have on the U.S. economy and global competitiveness over the next decade. Evidence indicates that China intends to help build its economy by intellectual-property theft rather than by innovation and investment in research and development (two strong suits of the U.S. economy). The nature of the Chinese economy offers a powerful motive to do so.

According to 2009 estimates by the United Nations, China has a population of 1.3 billion, with 468 million (about 36% of the population) living on less than $2 a day. While Chinese poverty has declined dramatically in the last 30 years, income inequality has increased, with much greater benefits going to the relatively small portion of educated people in urban areas, where about 25% of the population lives.

The bottom line is this: China has a massive, inexpensive work force ravenous for economic growth. It is much more efficient for the Chinese to steal innovations and intellectual property—the source code of advanced economies—than to incur the cost and time of creating their own. They turn those stolen ideas directly into production, creating products faster and cheaper than the U.S. and others.

Cyberspace is an ideal medium for stealing intellectual capital. Hackers can easily penetrate systems that transfer large amounts of data, while corporations and governments have a very hard time identifying specific perpetrators.

Unfortunately, it is also difficult to estimate the economic cost of these thefts to the U.S. economy. The report to Congress calls the cost "large" and notes that this includes corporate revenues, jobs, innovation and impacts to national security. Although a rigorous assessment has not been done, we think it is safe to say that "large" easily means billions of dollars and millions of jobs.

http://defense-technologynews.blogspot.com/2012/02/dtn-news-defense-intelligence-news.html