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Intellectual Property Law

: Womble Trade Secrets Blog

Britain's MI5 Warns UK Businessmen: Your Firms Are Under Attack from China

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We are linking you to a fascinating report from TimesOnline about the leaking of MI5 warnings regarding doing business in China.

The piece starts off with: "The security service MI5 has accused China of bugging and burgling UK business executives and setting up ?honeytraps? in a bid to blackmail them into betraying sensitive commercial secrets.

A leaked MI5 document says that undercover intelligence officers from the People?s Liberation Army and the Ministry of Public Security have also approached UK businessmen at trade fairs and exhibitions with the offer of ?gifts? and ?lavish hospitality?.

The gifts ? cameras and memory sticks ? have been found to contain electronic Trojan bugs which provide the Chinese with remote access to users? computers.

MI5 says the Chinese government ?represents one of the most significant espionage threats to the UK? because of its use of these methods, as well as widespread electronic hacking. ""

But intrigue abounds in the piece, including these gems:

"China has occasionally attempted sexual entrapment to target senior British political figures. Two years ago an aide to Gordon Brown had his BlackBerry phone stolen after being picked up by a Chinese woman who had approached him in a Shanghai hotel disco.

The report says the practice has now extended to commercial espionage. It says Chinese agents are trying to cultivate ?long-term relationships? with the employees of key British companies: ?An undercover intelligence officer may try to develop a friendship or business relationship, often using lavish hospitality and flattery.

?Chinese intelligence services have also been known to exploit vulnerabilities such as sexual relationships and illegal activities to pressurise individuals to co-operate with them.?

The warning to British businessmen adds: ?Hotel rooms in major Chinese cities, such as Beijing and Shanghai, which are frequented by foreigners, are likely to be bugged ... hotel rooms have been searched while the occupants are out of the room.?"

This story will not die and is spreading from industrialized country to industrialized country. We will continue to report back on these and other reports.

Full post as published by Womble Trade Secrets Blog on February 02, 2010 (boomark / email).