CHINA TOPIX

05/18/2024 09:04:59 am

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Chinese Justice Ministry Probes Ex-Employee of a Big Tech Company for Leaking Confidential Information

China Tech

(Photo : Photo by Kevin Frayer/Getty Images) A top employee in a high ranking firm in China has been accused of violating the Trade Secrets Acts after he was found to have shared sensitive information about his employer's designs and research with competitors.

A former employee of a top Chinese electronic parts manufacturer has been taken into custody for questioning over his involvement in leaking important information to a competitor. 

The man surnamed Chen is a former senior manager in Dachang Industries, a subsidiary of P-Two Industry located in mainland China. He was taken to the Shilin Prosecutors Office for questioning on Friday. 

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Unknown to Danching Industries, Chen also held a top position in a rival company at the time he was working for them. P-Two Industries said that Chen downloaded blueprints of research and development designs and sensitive product production costs to his personal laptop. 

Chen then emailed the information to competing Chinese companies. He has been charged with violations of the Trade Secrets Act. 

The company discovered the leak during interior checkups last year and immediately filed a lawsuit to the Ministry of Justice Investigation Bureau (MJIB), which created a task force to investigate the case. 

P-Two Industry is famous for its cutting-edge design, production, and manufacturing of electronic assembly parts, MJIB said, adding that its technology "surpassed Chinese companies by bounds." 

The leaked data, which are all complete designs of machine models,  will cause favorable circumstances to its receiver. For one, the company may no longer have to spend on research and development, equipment, and human resources. It can also sell the products at a lower price compared to P-Two Industries. 

"Through the unfair pricing competition, the rival company could undermine P-Two Industries' corporate standing," MJIB said. 

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