Communist China's military spending "has tripled since 1999 ", and the
massive, secret buildup "is raising fears among China's neighbors" -
particularly Taiwan, which is facing nearly 1,000 Communist missiles pointed
at it.
....
http://www.washtimes.com/national/20...5658-7049r.htm

Chinese Spies Pay Off

ITT Corp. has agreed to pay a $100 million fine for illegal exports of
advanced night vision technology to China. The fine, part of a plea
agreement reached with the Justice Department is one of the largest ever
paid in a criminal case.
....
The ITT conviction followed the opening of jury selection in the prosecution
of an accused Chinese army spy. According to the U.S. Justice Department,
Chi Mak is a foreign agent who used his position as an engineer to steal
military secrets for the Chinese Army.

Mak, a naturalized American citizen, has been charged with conspiracy to
export advanced military secrets to China. Mak could get more than 50 years
in prison if convicted.

Chi Mak was a top engineer at Power Paragon, a California-based subsidiary
of L-3 Communications. Mak worked on advanced naval technologies, including
a silent-running propulsion system that can make submarines virtually
undetectable.

According to the Justice Department, Mak has also worked for the Chinese
military from 1983 until his arrest in 2005, stealing hundreds of secret
documents for his masters in Beijing.

The prosecution claims that Mak took documents from Power Paragon, copied
them to computer disks and encrypted them with the help of his brother, Tai
Mak, and his nephew, Billy Mak, before trying to pass them to the Chinese
army. Tai Mak and his wife, Fuk Heung Li, were arrested in 2005 at Los
Angeles International Airport as they prepared to travel to Hong Kong and
China.

In their luggage were encrypted disks containing copies of documents on a
submarine propulsion system.

The prosecution is expected to demonstrate that the Chinese military has an
extensive network of spies inside the United States. According to the FBI
and the CIA, the Chinese army operates nearly 3,000 front companies inside
the U.S. These companies engage in various forms of espionage, ranging from
military to commercial spying.

The effort to identify and evict these Chinese army fronts has been hindered
by various officials inside both the Clinton and Bush administrations. The
current U.S. laws require the White House to publish an annual list of known
Chinese army companies operating inside the U.S.

Instead, the U.S. State Department recently issued a waiver for Chinese army
companies to continue operating inside America. The Bush administration
imposed an import ban against known Chinese army companies that sent
advanced nuclear and missile technology to Iran.

In response, the State Department has issued a waiver allowing the companies
to continue to import goods into the U.S. despite the sanctions. The waiver
reportedly was given to China by State Department officials who contend that
punishing the Chinese army companies would lead to Beijing backing out of
the North Korea talks on nuclear weapons.

However, all is not going well for China supporters inside Washington.
Marine general James Cartwright, commander of STRATCOM (Strategic Command)
wants Congress to pass laws allowing the U.S. military to locate, and go
after, those who are waging a Cyber War against America. STRATCOM is in
charge of American strategic weapons, including warfare via the Internet.
STRATCOM is also responsible for keeping an eye on the strategic weapons of
other nations.

It is known that the Chinese government makes use of civilian hackers and
freelance mercenaries, for Cyber warfare attacks. Chinese hackers have been
identified as the source of attacks on American military bases, military
computer systems and even individual military personnel.

STRATCOM officials have given some classified briefings to Congress,
detailing American vulnerabilities, and possible countermeasures that could
be undertaken.

STRATCOM is not the only military agency to note the growing Chinese threat.
The U.S. Office of Naval Intelligence (ONI) recently issued a report
detailing the growth of the Chinese Navy into a "blue water" fleet to
challenge the U.S. Navy.

"Over the past decade, the Chinese Navy has embarked on a modernization
program with the goal of being the pre-eminent regional power in East Asia.
By acquiring some of the world's most impressive naval technologies from
abroad while simultaneously building advanced indigenous submarines,
combatants, and naval aircraft, China is positioning itself to play a
growing role in regional and trans-regional affairs," states the ONI report.

"Preparation for the maritime battlefield has been intensified and improved
while the integrated combat capabilities are being enhanced to conduct
offshore campaigns. The capability of nuclear counter-attacks has also been
enhanced," warned the ONI report.

"The PLA navy has also sped up the process of updating its weaponry and
equipment with priority given to the development of new combat ships as well
as various kinds of special purpose aircraft and relevant equipment. At the
same time, the weaponry is increasingly informationalized and long-range
precision strike capability raised," states the ONI report.

"The (PLA) navy aims at gradual extension of the strategic depth for
offshore defensive operations and enhancing its capabilities in integrated
maritime operations and nuclear counterattacks. The navy is working to build
itself into a modern maritime force of operation consisting of combined arms
with both nuclear and conventional means of operations," noted the ONI
report.

http://www.newsmax.com/archives/arti...29/93345.shtml

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