Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The US Department of Justice said Chinese wind turbine firm stole trade secrets from a American supplier which was qualified by the government as “attempted corporate homicide”. The company called Sinovel was accused of inciting one of the US-based AMSC employees to steal copyrighted source code from a computer in Wisconsin in order to use it for its turbine business.

Sinovel used the technology in the turbines sold to customers in Massachusetts. “The fact that Sinovel has exported stolen American intellectual property from China back into the United States — less than 40 miles from our global headquarters — shows not only a blatant disrespect for intellectual property but a disregard for international trade law,” AMSC CEO Daniel McGahn said in a statement cited by CNN Money.

The software which was stolen, has a purpose of regulating the flow of electricity from turbines to electrical grids. The theft hurt AMSC with more than $800 million, according to the US Justice Department. According to the suffering company around 500 AMSC employees have lost their jobs following Sinovels “egregious and unlawful behavior,” McGahn said.

John Vaudreuil, the US attorney for Wisconsin, where the servers that held AMSC’s information are located, said: “The allegations in this indictment describe a well-planned attack on an American business by international defendants – nothing short of attempted corporate homicide.” cited by Financial Times.

If proved, the charges may cost a maximum penalty that could mean billions of dollars, and potentially long prison sentences. A conviction could carry penalties as much as $5 billion for Sinovel. The U.S. has recently adopted strategy for defending from persistent threat to the American military and economy. It has pointed out Chinas military to be in the core of unfair trade and industry practices.

“Its quite obvious now that the Chinese senior leadership understand clearly the importance of this issue to the United States,” White House National Security Adviser Tom Donilon said after the summit in which President Obama raised the issue to Chinese President Xi Jinping.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: USD/MXN daily forecastForex Market: USD/MXN daily forecast During yesterday’s trading session USD/MXN traded within the range of 13.1073-13.1531 and closed at 13.1230.At 11:13 GMT today USD/MXN was losing 0.18% for the day to trade at 13.0977. The pair touched a daily low at 13.0933 at 10:45 GMT, […]
  • Natural Gas Futures Daily Trading ForecastNatural Gas Futures Daily Trading Forecast During Fridays trading session natural gas futures for delivery in May traded within the range $4.405-$4.476 and closed at $4.421.At 10:45 GMT today natural gas futures for settlement in May traded at $4.498 per million British thermal […]
  • Forex Market: EUR/GBP daily forecastForex Market: EUR/GBP daily forecast During yesterday’s trading session EUR/GBP traded within the range of 0.8194-0.8226 and closed at 0.8206.At 6:31 GMT today EUR/GBP was losing 0.11% for the day to trade at 0.8195. The pair touched a daily low at 0.8194 at 6:25 […]
  • Warmer Temperatures Signal Reduced U.S. Natural Gas Consumption, Futures Drop 2.14%Warmer Temperatures Signal Reduced U.S. Natural Gas Consumption, Futures Drop 2.14% Key momentsU.S. natural gas futures fell 2.14% on Friday. Revised weather projections predicting milder temperatures across the Lower 48 states led to a substantial reduction in heating degree day (HDD) estimates. Natural gas storage […]
  • Canada’s building permits well above estimates in AprilCanada’s building permits well above estimates in April The value of building permits in Canada has risen at a monthly rate of 20.5% to $12.8 billion in April, after a 12.3% decrease in March, data by Statistics Canada showed.The actual rate well exceeded market consensus of a 2.2% […]
  • Forex Market: GBP/USD consolidates after Friday’s losses as markets await UK unemployment, GDP dataForex Market: GBP/USD consolidates after Friday’s losses as markets await UK unemployment, GDP data Having registered its largest single-day loss since June 24th on Friday, GBP/USD was rather in consolidation mode during the European session on Monday ahead of the key UK unemployment and GDP data prints later this week.The US Dollar […]