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Yuesheng Wang, 35, will appear in Longueuil court on Tuesday to face charges including obtaining trade secrets.
The RCMP described Hydro-Québec as “critical infrastructure and a strategic interest to protect.” Postmedia news
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A Montreal-area Hydro-Québec employee is charged with espionage after allegedly providing trade secrets to China “to the detriment of Canada’s economic interests,” the RCMP said Monday.
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Yuesheng Wang, 35, was arrested Monday at his home in Candiac, south of Montreal.
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He will appear in Longueuil court on Tuesday to be charged with “obtaining trade secrets in the performance of his duties with Hydro-Québec,” according to an RCMP spokesperson. He will also be charged with using a computer without authorization, and fraud and breach of trust by a public official.
RCMP Insp. David Beaudoin told reporters it is the first time in Canada that someone has faced charges of economic espionage, which comes under the Security of Information Act.
“This investigation is of great importance to us and sends a clear message,” he said at a news conference at the RCMP’s Quebec headquarters in Westmount. “It demonstrates our commitment and that of our partners to work with sectors at risk.”
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He said Wang is accused of obtaining “trade secrets” in the course of his duties at Hydro-Québec.
Wang, it said, allegedly conducted research for Chinese research centers and a Chinese university, and published scientific papers and filed patents associated with them instead of Hydro-Québec. He also allegedly used information without his employer’s consent, damaging Hydro-Québec’s intellectual property, it said.
Beaudoin declined to say whether China paid the defendant for his alleged actions.
The offenses are alleged to have taken place between February 2018 and October 2022. The espionage charge carries a maximum sentence of 10 years in prison, he said.
In a statement, the RCMP said its national security team launched an investigation in August after receiving a complaint from Hydro-Québec’s corporate security branch.
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“Interference by foreign actors is a priority for many law enforcement and intelligence agencies around the world,” the RCMP wrote. “Hydro-Québec is considered critical infrastructure and a strategic interest to protect.”
In a statement, Hydro-Québec said Wang was a researcher working on battery materials with the Center of Excellence in Electrification of Transport and Energy Storage, known as CETEES. The company said its security team launched its own investigation before flagging down the authorities. He added that Wang’s employment has ended.
“Our detection and intervention mechanisms allowed our investigators to bring this matter to the attention of the RCMP, with whom we have worked closely ever since,” said Dominic Roy, senior director responsible for corporate security.
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“No organization is safe from a situation like this, which is why we must always remain vigilant and transparent, and we must not tolerate violations of the company’s code of ethics.”
The employee did not have access to information related to Hydro-Quebec’s “core mission” and his access was revoked when suspicions arose, the company added. He said the center he worked at develops technology for electric vehicles and energy storage systems.
While this is the first time a trade secret charge has been brought in Canada, Beaudoin said foreign interference is a growing priority for law enforcement.
“We are increasingly active in this area because we believe it is an issue that directly affects national security,” he said. “Because of our increased involvement, we are examining many more files than before, which is why we were able to bring the criminal charges today.”
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Wang will remain in custody pending his court appearance, he added. Beaudoin could not confirm whether Wang is a Canadian citizen.
The federal Minister of Innovation, Science and Industry, François-Philippe Champagne, said on Monday that he was “concerned” about this spying affair and hoped that the investigation would get “to the bottom of things”.
He said his recent decision to ban Chinese companies from critical mining operations in Canada “shows once again that we have to be extremely vigilant and make sure we put all the rules in place to be able to detect and prevent. Send a message to Canadian companies to be prudent under the circumstances.”
Bloc Québécois MP Kristina Michaud, vice-chair of the House of Commons Standing Committee on Public Safety and National Security, called the incident “news” but said she was “happy” to see that the RCMP ” act with all the necessary seriousness”. .”
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He said a motion was passed in the House of Commons last year for the government to have a register of foreign agents, similar to Australia’s. But “the government has done nothing,” he said.
Conservative MP Pierre Paul-Hus said the arrest is confirmation that Chinese espionage exists in Canada and that the country must protect itself better.
“We’ve had three foreign ministers say they have plans, including Minister Joly last week. But we still don’t know what the plan is. Even the Canadian Security Intelligence Service doesn’t know what it is the plan”.
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