Chinese firms and former Philips employees charged with stealing X-ray technology trade secrets in a case that highlights growing concerns over technological espionage.
At a Glance
- Two Chinese companies and four individuals indicted for stealing Philips Medical Systems’ trade secrets
- Stolen information related to proprietary X-ray tube technology developed in Illinois
- Three former Philips engineers among those charged; one suspect still at large
- Case linked to China’s strategy of acquiring cutting-edge technologies for military and civilian use
Chinese Firms and Former Employees Indicted
Two Chinese companies and four individuals have been charged with stealing trade secrets from Philips Medical Systems. The U.S. Attorney’s Office in Illinois has accused the defendants of infiltrating a Philips facility in Aurora to extract proprietary data related to X-ray tube production for imaging devices.
The indictment names Kunshan GuoLi Electronic Technology Co. Ltd. and Kunshan Yiyuan Medical Technology Co. Ltd. as the Chinese firms involved in the conspiracy. Four individuals, including Xiaoquin Du, a Vice President of Kunshan GuoLi, and three former Philips engineers – Chih-Yee Jen, Fince Tendian, and Vladimir Nevtonenko – have been charged for their alleged roles in the scheme.
According to the indictment, the conspiracy centered around the unlawful possession and utilization of Philips’ trade secrets. Jen, a former Philips employee, is accused of copying trade secret information without authorization and using it to develop X-ray tubes for the rival company. The stolen information was allegedly shared with Tendian and Nevtonenko for use at the Chinese-founded company in Aurora, which was later dissolved in November 2022.
“The public is reminded that an indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt,” Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, said.
The case took a further turn when it was revealed that Jen allegedly used the stolen trade secrets at Kunshan YiYuan Medical Technology, another defendant company. YiYuan, established by GuoLi in May 2018, is said to have taken over the medical X-ray business from its parent company.
This case appears to be part of China’s broader trend of attempting to bolster its military capabilities through civilian technological gains. YiYuan’s association with China’s “military-civilian” fusion strategy, which aims to acquire cutting-edge technologies, adds a layer of complexity to the situation. The company’s recognition as an incubating “unicorn company” by the Suzhou municipal government in 2021 further underscores the strategic importance of such firms in China’s technological landscape.
The charges brought against these companies and individuals highlight the critical vulnerabilities in safeguarding international intellectual property against economically driven espionage activities. As the case unfolds, it serves as a stark reminder of the ongoing challenges in protecting sensitive technologies in an increasingly interconnected global economy.
While Jen, Tendian, and Nevtonenko have pleaded not guilty, an arrest warrant has been issued for Du. The case, overseen by U.S. District Judge Edmond E. Chang, is set for a joint status report by March 31, 2025.
The defendants maintain their innocence.
