Yusheng Wang, 35, an employee of Canada’s largest electricity producer Hydro-Quebec, was arrested at his home south of Montreal by the Royal Canadian Mounted Police (RCMP) on Monday.
A special national-security investigations unit of the RCMP charged Wang with stealing trade secrets for China.
Wang was also charged with unauthorized use of computer systems, fraud, and breach of public trust. He will be the first person prosecuted for the long-dormant “economic espionage” charge established under the Security of Information Act in 2001.
“This investigation is of great importance for us and sends a clear message. It demonstrates our commitment and that of our partners to work with at-risk sectors,” RCMP Inspector David Beaudoin said at a press conference on Monday.
“Foreign actor interference is a priority for many law enforcement and intelligence agencies around the world. Hydro-Quebec is considered a critical infrastructure and a strategic interest to be protected,” the RCMP said in a press release announcing the arrest.
According to Hydro-Quebec’s statement on the matter, Wang was a researcher working on battery materials for the Center of Excellence in Transportation Electrification and Energy Storage (CETEES). The CETEES unit has research partnerships with several private companies, and also works with the U.S. Army Research Laboratory.
Wang committed his alleged economic espionage activities between February 2018 and October 2022. Hydro-Quebec’s statement did not detail the precise information he was accused of stealing, but said he did not have access to the “main mission” of the utility. The RCMP said he “allegedly obtained trade secrets to benefit the People’s Republic of China, to the detriment of Canada’s economic interests.”
Wang’s activities were quickly detected by internal security, which contacted the RCMP, prompting the launch of a national security investigation in August 2022.
“I would like to emphasize that throughout the investigation, the RCMP received the full cooperation of Hydro-Québec. This cooperation is necessary to curb activities by foreign elements that threaten the integrity of our infrastructure and Canadian interests,” Inspector Beaudoin said on Monday.
“No organization is safe from a situation like this one, which is why we must always remain vigilant and transparent, and we must not tolerate violations of the company’s code of ethics,” Hydro-Quebec security director Dominic Roy said.
The RCMP did not specify whether it believes Yang was paid to obtain trade secrets for China, or whether he holds Canadian citizenship.
The office of Canadian Prime Minister Justin Trudeau, who is currently attending the G20 summit in Bali, did not comment on Wang’s arrest. Chinese Communist dictator Xi Jinping is also attending the G20 meeting.
Relations between Canada and China have been strained in recent years, especially after Canada arrested Huawei executive and Communist Party elite Meng Wanzhou for extradition to the United States on sanctions violation and fraud charges. China took several Canadians hostage to secure Meng’s release in September 2021.
Chinese Foreign Ministry spokeswoman Mao Ning claimed she was unaware of Yang’s arrest during a press briefing on Tuesday, but nevertheless urged Canada to “deal with such cases in accordance with the law and not politicize them.”
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