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Wednesday, February 1, 2012

U.S.: How China ripped off DuPont Co.

China is one of Wilmington-based DuPont Co.'s biggest fastest-growing markets for pesticides and industrial materials. But China's government hasn't been content with the jobs and sales the company brings. As Reuters reports here:

"Chinese government representatives directed a U.S. businessman to obtain valuable technology manufactured by chemical giant DuPont ...

"Walter Liew, a U.S. citizen, and his wife, Christina Liew, each were indicted last year by a Northern California grand jury on three counts, including witness tampering, making a false statement and conspiracy to tamper with witnesses and evidence. ... A hearing on bail is scheduled for Walter Liew on Wednesday in U.S. federal court in San Francisco as prosecutors try to keep him behind bars.

"According to court documents, Walter Liew paid at least two former DuPont engineers for assistance in designing chloride-route titanium dioxide, also known as TiO2. DuPont is the world's largest producer of the white pigment used to make a range of white-tinted products, including paper, paint and plastics," at plants including the company's Edge Moor works on the Delaware River a few miles past the Pa. state line.

 "Liew, 54, and his wife have pleaded not guilty... DuPont also filed a civil lawsuit against Liew for misappropriating trade secrets.

"Liew denies obtaining or possessing "any confidential, proprietary trade secret materials" from DuPont regarding TiO2, according to court documents...

"Liew was hosted at a banquet in 1991 by Luo Gan, who at the time was a high-ranking official of the Communist Party of China Central Committee, according to correspondence from Liew that U.S. federal officials say they seized from his safety deposit box. Luo Gan went on to become a member of the nine-member Standing Committee of the Politburo, prosecutors wrote in the filing...

"The purpose of the banquet is to thank me for being a patriotic overseas Chinese who has made contributions to China," Liew wrote in a memo to a Chinese company, according to U.S. prosecutors, "and who has provided key technologies with national defense applications, in paint/coating and microwave communications."

"Luo Gan gave Liew directives at the meeting, and two days later Liew received a list of 'key task projects,' including TiO2, prosecutors stated.

"DuPont's state-of-the-art technology is not available publicly and PRC (People's Republic of China) companies have not been able to master it on their own," prosecutors wrote. "Liew, however, obtained that technology from former DuPont employees and sold it to companies controlled by the PRC government...

"The Chinese embassy in Washington did not immediately respond" to a request for comment. Case is USDC N.Calif., USA v Walter Liew and Christina Liew, 11-cr-573.
Posted by Joseph N. DiStefano @ 8:43 AM  Permalink | 2 comments
Comments   
  • 0 like this / 0 don't   •   Posted 10:53 AM, 02/01/2012
    American companies raced to China thinking they could make big money and huge bonus cash for the executives. In the process they have effectively turned over 100 years of knowledge in less than a decade. American business has built china and will see little real gain from it. That is the truth. Walmart was the first, but others as well. Home Depot forced it suppliers to manufacture in china, but chinese law forces them to go 50-50 in partnership with a chinese firm. Depot found that they could partner with the chinese firm and thus own part of the factory at no cost. later, they set up another factory to copy the product and cut out the original supplier.
    — Dutch-wayne
  • 0 like this / 0 don't   •   Posted 12:25 PM, 02/01/2012
    Ha, try some, it's a free sample, you like it don't you little boys and girs, Ha Ha HA now you are addicted the White Lady, just lay back and dream your life away, I'll be back to freshen the pipe.
    — Fernando08


2 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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