
Chinese Hacker, Wanted By US For Stealing COVID-19 Data, Arrested In Italy
Italian authorities have arrested a Chinese citizen, accused by the United States of being part of a state-sponsored hacking group that stole COVID-19 vaccine secrets from the US on behalf of Chinese intelligence at the height of the pandemic in early 2020. Xu Zewei was arrested at Milan's Malpensa airport on July 3, after the US issued an international warrant against him, according to Italian authorities.
A nine-count US indictment accused 33-year-old Zewei of working at the behest of China's Ministry of State Security to target US-based universities, immunologists, and virologists conducting research into COVID-19 vaccines, treatment, and testing. The indictment also accuses another person, Zhang Yu, who is believed to be in China, of participating in the activity.
Zewei was presented at a Milan court on Tuesday as the US Justice Department begins the process to extradite him to America's Texas, where he faces charges related to wire fraud, identity theft and hacking.
Italy's Justice Ministry confirmed that the US has formally sent an extradition request to Rome for request for Zewei, while he was being held in the country "at the request of US authorities for suspected IT crimes aimed at industrial espionage."
The US believes the Chinese national was linked to a state-sponsored hacking group known as Hafnium that was accused of penetrating Microsoft email software in 2021 in a mass espionage campaign.
Awkward Moment For Meloni?
The arrest of the Chinese citizen, who claimed he was an IT specialist at the Milan court, could put pressure on Prime Minister Giorgia Meloni's government in Italy, which has sought to court US President Donald Trump while also maintaining good relations with China.
Over the years, the right-wing Meloni has forged a solid personal bond with Trump, even as the European Union remain at odds with Washington.
But the Italian premier has also maintained friendly diplomatic relations with Beijing, an important trading partner. Rome and Beijing have been on friendly terms even after Meloni decided to withdraw from Chinese President Xi Jinping's flagship Belt and Road Initiative. Italy's deputy prime minister, Matteo Salvini, was due for an official visit to Beijing later this week.
China's Reaction
Chinese Embassy in Washington, DC, said it was unaware of Zewei's case but said that "similar rumours have surfaced multiple times in the past, and China has already stated its position on the matter."
Chinese vaccine research and development is amongst "the most advanced in the world. China has neither the need nor the intention to acquire vaccines through so-called theft," Embassy spokesperson Liu Pengyu said in a statement to CNN.
China's Espionage Record
When the pandemic was at its peak in 2020, intelligence services across the globe scrambled to gather more and more information on the impacts of the virus. At the time, the FBI and the US Cybersecurity and Infrastructure Security Agency repeatedly accused China of trying to steal vital research by hacking the systems of US groups studying the virus.
In mid-2020, the US Department of Justice even indicted two other Chinese nationals for allegedly trying to access US research as part of Beijing's decade-long scheme to steal US trade secrets.
At the time, Chinese state media said Washington had no evidence to support the allegations, adding: "It seems that some US politicians have totally lost their minds."
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The assumption everyone makes is that manufacturing is chiefly for exports—that is wrong. Export competitiveness is important for better productivity, but exports as a source of end-demand are unlikely to be large enough." To be sure, introducing such reforms in India won't be easy. New Delhi, after all, chose to walk out of the Doha Round of trade talks in 2008 rather than give in to American pressure on agriculture. China supported the Indian position against the US then, and something similar may be happening this time around too, with four of the Brics Plus grouping founders— Brazil, Russia, India and China—reportedly eyeing a response to tariffs. Trump is deeply suspicious of Brics, viewing it as anti-American, and this has emerged as another sticking point in India-US ties. But the Russian ambassador to India told a recent meeting on Brics, organised by the India Foundation, more than once that 'de-dollarization (finding an alternative to the global currency of trade) was never a Brics proposal". Pai recommends keeping the temperature down. 'India and the US are joined at the hips when it comes to technology. As many as 25 major US tech companies have Indian-origin CEOs," said Pai, whose Aarin Capital is an investor in technology-intensive businesses. 'It's a temporary set-back. In India, there's a lot of pride; we are not deal-driven." A test ahead 'Trump's Presidency is a work in progress," said Saran. 'You have to play with the cards you are dealt. We have to find our own equilibrium with President Trump, and be careful not to make matters worse. Indian diplomacy will be strongly tested in the coming years, with flashes from the Cold War years, now fuelled by terrorism, threatening to cloud what promised to be a new era of growth-fuelled development. Equally, with a mercurial US president, things could swing right back to a more predictable and respectful relationship. But even amid the current uncertainty, Indian diplomats can draw satisfaction from the fact that an increasingly multipolar world sees India as a shining example of economic progress. And that's something even Trump cannot ignore.