China's Economic Espionage Strategies: Insights from the Linwei Ding Case

Economic espionage is a growing threat to organizations worldwide. It involves the theft of trade secrets, intellectual property, and sensitive information to gain a competitive advantage. The case of Linwei Ding offers valuable lessons on how these operations unfold and how organizations can defend themselves. In this post, I will share insights from this case and outline practical strategies to detect, counter, and prevent economic espionage.

Understanding Economic Espionage Strategies

Economic espionage is not random theft. It is a calculated effort by individuals or state-sponsored actors to acquire proprietary information. The Linwei Ding case exemplifies how these strategies operate. Ding was convicted of stealing sensitive technology and intellectual property from Google. Specifically, their AI research.

This case highlights several key tactics used in economic espionage:

• Insider recruitment: Economic Espionage often involves insiders who have, or can develop, access to confidential data. However, China's state sponsored cyber espionage is the primary means of theft.

• Use of tradecraft: Tactics include commercial encrypted communications (WeChat), open commercial emails, commercial cloud storage, and hand carrying stolen information.

• Exploitation of supply chains: Attackers may target third-party vendors or contractors to gain indirect access.

• Technology theft: Focus on stealing blueprints, software code, and research data.

  
  

Understanding these strategies helps organizations identify vulnerabilities and strengthen defenses.

Economic espionage involves digital theft and insider access

The Linwei Ding Case: A Closer Look

The Linwei Ding case is a textbook example of economic espionage targeting high-value technology. Ding, a former employee of a Google, was charged with transferring proprietary information to a foreign entity. He was convicted on Jan 29, 2026 and faces 10 years in prison. The case reveals how espionage can be embedded within legitimate business operations.

Key takeaways from the case include:

1. Insider threat is real and persistent. Ding exploited his position to access over 500 documents for which was unauthorized to have. He did this over a period of one year to avoid flags in his data usage.

   
   

2. Data exfiltration methods can be varied. Ding copied data from source files into the Apple Notes application on his work issued MacBook laptop. He then converted the Apple Notes into PDF files and uploaded them into a Google drive account. Uploading company data to commercial cloud services has become a new tactic because it allows plausible deniability of intent.

   
   

3. Theft of foreign trade secrets in China is often openly known to investors. Foreign technology is viewed highly in the PRC and often used to attract partners and investors. So it is quite common for those who have stolen foreign technology to brief that information to CCP, government agencies, universities, and companies. Ding noted to the Zhisuan WeChat investor group “we have experience with Google's ten-thousand-card computational power platform; we just need to replicate and upgrade it - and then further develop a computational power platform suited to China's national conditions.”

   
   

This case underscores the importance of continuous monitoring and strict access controls.

Securing physical and digital assets is crucial in preventing espionage

Practical Measures to Detect and Prevent Economic Espionage

Organizations must adopt a multi-layered approach to combat economic espionage. Based on the Linwei Ding case and industry best practices, here are actionable recommendations:

1. Strengthen Insider Threat Programs

• Conduct thorough background checks before hiring.

• Implement continuous monitoring of employee activities.

• Use behavioral analytics to detect anomalies.

• Provide regular training on data security and ethics.

  
  

2. Enhance Data Security Protocols

• Encrypt sensitive data at rest and in transit.

• Limit access to critical information on a need-to-know basis.

• Use multi-factor authentication for system access.

• Regularly update and patch software to close vulnerabilities.

  
  

3. Monitor Supply Chain Risks

• Vet third-party vendors for security compliance.

• Include cybersecurity requirements in contracts.

• Conduct periodic audits of suppliers and partners.

• Establish clear incident response plans involving all stakeholders.

  
  

4. Leverage Technology for Detection

• Deploy intrusion detection systems (IDS) and data loss prevention (DLP) tools.

• Use network traffic analysis to spot unusual data flows.

• Implement endpoint detection and response (EDR) solutions.

• Employ threat intelligence feeds to stay informed about emerging risks.

  
  

5. Foster a Culture of Security Awareness (This is probably the most cost efficient solution)

• Encourage employees to report suspicious behavior.

• Promote transparency about security policies.

• Reward compliance and ethical conduct.

• Conduct regular drills and simulations.

  
  

These measures create a robust defense against economic espionage attempts.

The Role of Legal and Regulatory Frameworks

Legal tools are essential in deterring and prosecuting economic espionage. The Linwei Ding case was prosecuted under the Economic Espionage Act, which criminalizes the theft of trade secrets for the benefit of foreign entities. Organizations should:

• Understand relevant laws and regulations in their jurisdictions.

• Collaborate with law enforcement agencies when breaches occur.

• Maintain detailed records to support investigations.

• Engage legal counsel experienced in intellectual property and cybersecurity law.

  
  

Proactive legal preparedness can mitigate damage and facilitate swift action.

Leveraging Intelligence to Counter Economic Espionage

Intelligence gathering and analysis are critical components of an effective counter-espionage strategy. Organizations should:

• Monitor geopolitical developments that may signal increased espionage risk.

• Use open-source intelligence (OSINT) to track suspicious actors.

• Partner with government agencies and industry groups for information sharing.

• Conduct regular risk assessments focused on espionage threats.

  
  

By integrating intelligence into security operations, organizations can anticipate and neutralize threats before they materialize.

The Linwei Ding economic espionage case demonstrates the complexity and severity of these threats. It also highlights the need for specialized expertise in detecting and countering China-specific espionage and technology theft.

Building Resilience Against Economic Espionage

Resilience is the ability to withstand and recover from espionage incidents. To build resilience, organizations should:

• Develop comprehensive incident response plans.

• Conduct regular tabletop exercises simulating espionage scenarios.

• Invest in employee training focused on espionage awareness.

• Establish clear communication channels for crisis management.

• Continuously review and update security policies.

  
  

Economic espionage is a persistent and evolving threat. The Linwei Ding case offers critical insights into how these operations function and how organizations can defend themselves. By implementing strong insider threat programs, enhancing data security, leveraging legal frameworks, and integrating intelligence, organizations can protect their valuable assets. Building resilience completes the defense, ensuring long-term security in a complex global environment.