Washington, Oct 19 : The United States on Monday imposed sanctions on five Chinese companies and investment entities linked to the theft of Google's artificial intelligence trade secrets.
The State Department said the sanctions targeted entities connected to Linwei Ding, a Chinese national convicted by a US federal jury earlier this year of stealing confidential Google technology.
The action was taken under the Protecting American Intellectual Property Act (PAIPA), a federal law authorising sanctions against foreign individuals and organisations involved in significant theft of American trade secrets.
"Theft of trade secrets is a serious threat to US economic, foreign policy, and national security interests," State Department spokesman Tommy Pigott said in a statement.
The five designated entities are Shanghai Zhisuan Technology Co Ltd, Qiji Chuangtan Beijing Investment Management Co Ltd, Beijing Qiji Chuangtan Phase I Venture Capital Center Limited Partnership, Beijing Qiji Chuangtan Phase II Venture Capital Center Limited Partnership, and Beijing Qiji Chuangtan Zhiyuan Enterprise Management Center Limited Partnership.
Ding established Shanghai Zhisuan Technology in 2023 and promoted its ability to develop software capable of accelerating machine-learning workloads.
Ding subsequently applied to MiraclePlus, a Chinese startup incubation programme, claiming experience with Google's internal technology and systems.
The department said Ding promoted his company's ability to replicate Google's superintelligence infrastructure technology for use in China.
MiraclePlus, a Beijing-based venture capital firm, provided seed funding to Zhisuan in exchange for an ownership stake.
Two other designated entities, Phase I and Phase II, are venture capital funds managed by MiraclePlus. The fifth, Zhiyuan Enterprise, is wholly owned by Phase I.
The State Department said Zhisuan had knowingly engaged in or benefited from significant theft of American trade secrets, while MiraclePlus provided financial or other support connected to the theft.
The remaining three entities were designated because of their ownership or control relationships with MiraclePlus.
Monday's action followed an investigation conducted by the Justice Department and the Federal Bureau of Investigation.
On January 29, a federal jury convicted Ding on seven counts of theft of trade secrets.
According to the State Department, Ding stole thousands of pages of confidential Google information concerning advanced artificial intelligence technology for his own benefit and that of Chinese technology companies.
The department said the stolen material concerned technologies critical to American innovation and economic competitiveness.
It argued that theft involving sensitive and emerging technologies threatened American jobs, companies and investment, while potentially undermining national security.
The sanctions represent a separate government action from Ding's criminal conviction and extend Washington's response to the corporate and financial entities associated with the case.
