After ten years of cyberattacks they could see everything Nortel was doing, he says. Many of these allegations are consistent with a February 2020 U.S. Department of Justice indictment that alleges Huawei was involved in a decades-long conspiracy to steal technology from numerous victim companies in efforts to grow its market share, the expert said. Canada’s former ambassador to China, John McCallum, was pictured at the opening of one of the stations in Toronto. Shih and a number of alleged conspirators are accused in the United States of secretly sending sensitive technologies to China to modernize its military units. “China is the source of all extractions we are aware of.”, Read more: Read more: In July — in a case that mirrors such allegations — the FBI accused Chinese intelligence services and organized crime groups of colluding in cyberattacks targeting COVID-19 vaccine research and intellectual property in many nations, and Chinese dissidents in Canada. Commodore Patrick Tyrrell, a retired military intelligence officer and the U.K.’s first cyberwarfare chief, says the Chinese Communist Party has mastered the art of waging war in cyberspace. “We have seen organized crime, industry and government all spy and collect on Nortel,” the expert said. “It hit me like a ton of bricks,” Shields said. Powered by . But his alerts to Nortel fell on deaf ears, he said. Meanwhile, in the United States, the FBI is opening a new case against Chinese espionage every ten hours, according to director Christopher Wray. He said that these types of meetings provide the backdrops where Chinese officials can form personal relationships with talented researchers. And in 2013, Mandiant reported Nortel was one of 141 North American entities 61398 attacked. “If you have good intelligence, any military man will want to know the vulnerabilities in a particular company.”, “And over the years Huawei was undoubtedly successful in being able to take over Nortel.”. Shields found that a computer in Shanghai had hacked into the email account of an Ottawa-based Nortel executive. According to Juneau Katsuya, in China’s system, the cohort of Chinese researchers including Dr. Yu that attended such meetings in Toronto, would certainly be encouraged to bring their expertise back to Mainland China, for patriotic reasons. Shields says the Internet addresses were all registered to Shanghai Faxian Corp., a company with no connection to Nortel that Shields determined was a front with no real business in China. Beijing’s United Front — according to a 2020 report from Australian analyst Alex Joske — is the Chinese Communist Party’s vast political influence and espionage network, which uses actors from business, politics and organized crime, to target Western political and business leaders and obtain intellectual property for China. But to Shields and former CSIS agents, it seemed Nortel management saw the warnings as exaggerated spy novel plots. And if you look at Ren Zhengfei and the development of Huawei, it is quite clear this is a person with a military vision,” Tyrrell said. According to Mandiant, the unit is tasked by the Chinese Communist Party’s most elite leaders to steal technology for industries chosen for growth in the party’s periodic five-year plans. The U.S. government has come to a similar conclusion. Sam Cooper, Global News: "In mid-January, Chinese consulates in Canada and worldwide issued an urgent call. Canadian minister promises review after security contracts awarded to Chinese-state tech company. For one, there were forces within the Canadian government. Did Canadian politicians know the victims of a targeted shooting at a trendy Richmond restaurant. “I know what I found, and I know the discussions I had with certain people. In the Thousand Talents plan, Western-based academics are sometimes approached to collaborate with Chinese institutions in deals that can have hidden contracts skewed in China’s favour, according to the consultants Global News interviewed for this report. Want to discuss? Han Changfu of the Canadian Alliance of Chinese Associations said during an Oct. 30 news conference for Chinese-language media at Lipont Place in Richmond that his “caring and charitable group” was “discredited” by Global News’ Sam Cooper. But Juneau Katsuya said the NRC has been burned a number of times in collaborations with China and has lost intellectual property in major espionage and hacking cases, and still hasn’t learned its lesson. United Front groups in Canada helped Beijing stockpile coronavirus safety supplies. Shields and former Nortel corporate security employee Mike Kennedy told Global News about a case that occurred in the United States from about 2000 to 2003, the same time that Huawei allegedly reverse-engineered Cisco Internet routers according to the FBI indictment. There is enough circumstantial evidence.”. Investigators judged the equipment had been completely disassembled and copied for IP theft. United Front groups in Canada helped Beijing stockpile coronavirus safety supplies, According to meeting records posted on Canada Chinese Biomedical and Pharmaceutical Association’s website, in one February 2011 meeting, Yu gave a speech titled “Experience of Overseas Chinese Returning to China to Start a Business.”, The website includes a slide of Yu’s presentation, titled “Lessons Learned.”, According to the slide, one of Yu’s lessons was: “Better negotiate deal with government before you go.”, Another was: “If use intangible asset as investment, better define it at the time of initial establishment.”. But Huawei says it has never stolen IP from Nortel. Cyberwar strategy, Tyrrell says, fits the methods taught by ancient Chinese military general Sun Tzu, who said that territory can be seized without bloodshed, if the attacker patiently exploits an opponent’s vulnerabilities. And McCuaig-Johnston says the Thousand Talents Plan draws on funds from Beijing’s United Front Work Department, in order to offer lucrative pay and research-funding packages to Mandarin-speaking candidates working in Western labs and universities. “We currently do not have any further information to share at this time,” a CanSino spokeswoman said, when asked by Global News “why will China not ship the vaccine to Canada, which under the terms of the deal (between CanSino and NRC), was supposed to receive the vaccine in order to do tests in Canada?”. One public record that suggests Ottawa may acknowledge a connection between China’s attack on Nortel and Huawei’s subsequent rise is a coy statement in the summary report of an academic conference held by Canadian Security Intelligence Service. Juneau-Katsuya’s former CSIS colleague said prior to Nortel’s collapse Ottawa lacked the strategic foresight and capacity to fight China’s infiltration. Last week, CACA issued another statement attacking Sam Cooper and Global News— which it didn’t bother to translate into English —at a press conference in which it emerged legal action was considered in April but ultimately dropped because CACA “other things happened.” That is … Read more: “My interactions with CanSino involved the opposite direction; getting access to Chinese technology since they were providing the vaccine (which we never received).”. “It’s a growing concern whether or not Canada is equipped to combat this level of interference from the Chinese Communist Party,” Wong said. His comment has a significant similarity with Mr. Sam Cooper’s article published by Global News on April 30 this year. In one example, in 2014, the NRC was targeted in a Chinese cyberattack estimated to have cost Canada hundreds of millions and the loss of vast amounts of data, including personal information about NRC staff. Critics in Australia and the U.S., including FBI director Christopher Wray, have pointed to similar concerns. Link for radio at bottom of this feed. A Richmond-based group is taking Global News to task over an April 30 story which it claims “unfairly portrays” many Chinese Canadians. Could there be a link between the Nortel breaches and the rising fortunes of Nortel’s main China-based competitors, Huawei and ZTE?”. On May 6, 2020, I read Matthew Fisher’s informative commentary “China’s response to coronavirus criticism is diplomatic ‘charmless’ offensive,” posted at the Canadian blog Global News. Before returning to China the CanSino scientists were also members of a Chinese-Canadian research association that worked with Chinese government agencies to develop China’s science industry, the association’s records show. For months Shields tracked the hackers. Cdn Ambassador to China says Canada has to get tougher with Beijing. Responding to questions from Global News, a spokesman pointed to a 2014 University of Ottawa study, which found that poor management decisions led to Nortel’s downfall, not hacking. At the time Nortel’s fibre optics equipment was the world’s envy, with 70 per cent of all internet traffic running on Canadian technology. Please read our Commenting Policy first. “Blocking the vaccine shipment also sends the (geopolitical) message: ‘Look, if you really want to work with us, you need to toe the line.’ I have seen it before, and it shows how dependent we are on China.”. “We found no evidence of this and consider it unlikely.”. But Brian Shields says he is certain Ottawa has records that will show Canadians “the truth about what happened to Nortel.”. So he knows how to follow orders. Sam Cooper National Online Journalist, Investigative I joined the national investigations team with Global News in spring 2018, after reporting with the Did Canadian politicians know the victims of a targeted shooting at a trendy Richmond restaurant? By Sam Cooper Global News Posted December 2, 2020 5:00 am . about his article below. Juneau-Katsuya said he first completed a threat assessment on Nortel in the 1990s, and determined it was China’s top corporate espionage target. These stations are often run by United Front groups already established in Chinese-community groups in Western cities, the report said. In an interview Elcock said he “found it interesting” that the CanSino deal collapsed. Cooper started with a North Vancouver newspaper in 2006, and moved up to the Vancouver Province in 2009, where he started to investigate political corruption and real estate money laundering in Vancouver. So giving Huawei control of the internet means everything we do will be monitored and tracked and given to the Chinese state.". ", United Kingdom’s first cyberwarfare chief says Canadian sovereignty riding on Huawei 5G decision, United Kingdom’s first cyberwarfare chief says Canadian sovereignty riding on Huawei 5G decision – Aug 25, 2020, In response to questions about Huawei’s funding, a spokesman sent Global News a YouTube, Click to share quote on Twitter: "What that means is the Canadian government doesn't have control of its destiny. The hack occurred four days before Dunn was fired, amid an investigation of accounting irregularities. But who was it? Chinese vaccine company executives worked in program now targeted by Western intelligence agencies, Chinese vaccine company executives involved in controversial China recruiting program, Two executives at a company involved in a failed COVID-19 vaccine partnership with Canada are also involved in a controversial Chinese government recruitment program. The expert said China’s attack on Nortel had many facets, from systematic hacking and planting of electronic bugs and spies inside Nortel facilities, to usage of Chinese PhD students hired by Nortel to steal research, and attempts to compromise Nortel managers by using spies from the Chinese Communist Party and People’s Liberation Army. So I will make you very rich, and I will give you intelligence support, and I will assist in stealing information.”, “In retrospect, it’s clearly written on the wall how this happened. The report, titled “United Front groups in Canada helped Beijing stockpile coronavirus safety supplies,” by Sam Cooper details Beijing’s efforts to import personal protective gear to China from Canada and around the globe in the early days of COVID-19. Spying on Nortel became a requirement that satisfied everyone in that community." BT did not respond to questions for this story. And Huawei rejects allegations that it stole technology from companies in the United States in order to grow its market share. Zafirovski said Shields was known to “cry wolf” and management didn’t believe hacking was a real issue, the Wall Street Journal reported in 2012. “These were the crown jewels of Nortel R&D,” Shields said. “How delayed is our vaccine response going to be, because this Prime Minister preferred to partner with China, ahead of anyone else?” O’Toole asked. Don't Canadians deserve to know, too? He was stunned because it looked like a room filled with web servers. Snr Dir Pathogens. Several former Canadian Security Intelligence Service officials interviewed by Global News said that CanSino’s Canadian-educated scientists were likely seen as potential assets by Chinese Communist Party information collection networks. China was concerned that the new coronavirus raging in … Here’s why some firms still favour it. For Shields, 61398’s reported tactics fit everything that he observed about the cluster of internet addresses in Shanghai. This act of … “But Huawei strenuously denies that it has direct links with the Chinese Government or military, claiming that it receives no financial support from the Chinese Government.”. A look at Huawei’s involvement in telecoms networks around the world. By Sam Cooper National Online Journalist, Investigative Global News. On April 30, Global News’ investigative reporter Sam Cooper reported that the CCP’s influence arm, the United Front Work Department (UFWD), had organised and directed Chinese Canadians to buy up large quantities of masks and personal protective equipment (PPE) in Canada for export to China. “There were people that were caught, and devices found, and backdoors found and traced back to the Chinese. Billions more were laundered directly through Real Estate transactions in our country as elite gangsters moved their money from mainland China, Macau and Hong Kong commencing in the 80’s. In Nortel’s case, Tyrrell says Huawei realized the Canadian giant’s Achilles Heel was its huge and costly inventory of technology assets. Get a roundup of the most important and intriguing national stories delivered to your inbox every weekday. Margaret McCuaig-Johnston says that in her former role as an assistant deputy minister, she supported Canada’s research collaborations with China. “We are being threatened and harassed. Last month, an investigation by Global News journalist Sam Cooper revealed that China launched a state-level operation in January to corner the global market on personal protective equipment even as it was publicly insisting that the coronavirus outbreak spreading through … “Suddenly this company comes in with this astronomically low bid. People’s Republic of China officials in Canada did not respond to detailed questions for this story. “I am confident you can see relationships where the. Canada has yet to disclose more details about the nature of information lost to China in the case. To visualize that in the real world — it would be similar to a foreign army constructing a hidden tunnel into Canada’s treasury vault, and marching out unimpeded with gold bars. Find Sam Cooper's email address, contact information, LinkedIn, Twitter, other social media and more. Inside the Chinese military attack on Nortel. ... By Sam Cooper Global News Posted May 12, 2020 7:00 am . Shields spotted another major clue in Nortel’s logs of network traffic from Saturday, April 24, 2004. The NRC first collaborated with CanSino in 2014, providing a cell-line used by Dr. Yu and CanSino and the People’s Liberation Army, to produce an Ebola vaccine. “Huawei is repeatedly accused of being owned or funded by the Chinese government,” the linked video claims. ", China ‘totally took us down’: former Nortel cyber-security investigator, China ‘totally took us down’: former Nortel cyber-security investigator – Aug 25, 2020, For months Shields tracked the hackers. And in return, Canada was to test CanSino’s resulting vaccine and mass produce it in NRC labs. More recently, company records say that in 2016 CanSino’s Tianjin lab started a Chinese-American talent recruiting program that is supported by an “Overseas Chinese Affairs” office that is part of China’s United Front Work Department. But according to the FBI the majority of IP theft cases involve a range of actors sponsored by the Chinese Communist Party. “In this case it looks like what China did, is they got what they needed (from Canada) and they stopped the vaccine shipment. I'm Sam Cooper, investigative journalist for Global News who reports on B.C.’s money laundering crisis. Read more: “I have not had any discussions in particular related to the issue you quote about China recruiting and subverting Canadian investigators,” Halperin said. “Suddenly it collapses, and low and behold you can go pick the bits you want.”. Zafirovski said Shields was, Click to share quote on Twitter: "Canadians just don't realize the extent of the Chinese government's involvement in this thing. casino suspects, United Front groups in Canada helped Beijing stockpile coronavirus safety supplies, was selected for … the Thousand Talents Program, $6.8 million Nuctech deal rejected after security review, Government wants to protect details of RCMP raid on Montreal company linked to China. “You go in and make sure Nortel can’t get the money to keep this behemoth afloat,” Tyrrell said. The report says Canada has 47 Chinese talent recruiting stations, the U.K. and Australia each have 49, Germany has 57 and the U.S. has 146. permalink; Michel Juneau-Katsuya — former CSIS Asia-Pacific desk chief — confirmed his former CSIS colleague’s observations regarding China’s attack on Nortel. China was concerned that the new coronavirus raging in Wuhan was so deadly and infectious that its nurses and doctors would run out of safety supplies. Dr. Syra Madad. Some Nortel investigators alleged a company linked to Huawei had returned expensive networking equipment to a Nortel office and asked for a refund. Read more: April 19 2018. The Thousand Talents plan is one of those opportunities, and it’s clearly a vector of intelligence collection.”. “I knew this couldn’t be happening by chance.”. “We found essentially a global covert operation in which China moved early to secure personal protection equipment for its hospitals, while it was … Read more: These prominent “Overseas Chinese” researchers are known as “sea turtles” because they return with knowledge to benefit the CCP, according to Michel Juneau Katsuya, a former CSIS Asia-Pacific desk agent. The Thousand Talents Plan is deeply intertwined with China’s broad espionage campaigns, Canadian experts said, and often in conjunction with the United Front Work Department, a sprawling foreign affairs agency that is central to Chinese interference and espionage networks, according to Western intelligence. “The Chinese will make use of every opportunity. But some former Nortel employees recognize the types of allegations made so far. casino suspects, In an interview Ward Elcock, former director of CSIS, said “the Chinese have long had a vacuum cleaner collection strategy, where everyone is collecting everything.”, “There have been a lot of cases where Chinese academics have gathered intelligence in North America,” Elcock said. According to a Globe and Mail report, Yu blamed indecision on the part of Chinese bureaucrats for CanSino’s failure to ship vaccine material to Canada. Why? But since 2012, when Xi Jinping came to power, collaborations involving China’s Thousand Talents Plan have become increasingly dangerous, she says, because Xi has promoted the fusion of civilian and military research, and China has become increasingly “desperate” to obtain cutting-edge technology for the People’s Liberation Army. Yu’s slide presentation — which hasn’t previously been reported on — appears to shed light on connections between China’s talent recruiting networks in Toronto and negotiations surrounding the funding Yu secured with China’s government, in CanSino’s business startup. However, Yu was cited in a Chinese state-media report in November, saying that CanSino’s vaccine has proven effective in protecting Chinese military personnel operating in areas impacted by the coronavirus pandemic. NYC Health System. “It’s the people of the United States who are the victims of what amounts to Chinese theft on a scale so massive that it represents one of the largest transfers of wealth in human history,” Wray said in July. But Huawei has repeatedly denied any wrongdoing in the Nortel case. Shih denies the allegations. Shields soon found the hacker controlled the accounts of at least seven Nortel executives. “The Chinese intelligence services have developed several concepts for repatriating information, and what better vehicle than to bring back someone that was educated abroad and understands the so-called ‘enemy’” Juneau Katsuya said. By Sam Cooper National Online Journalist, Investigative Global News WATCH: After two decades, a B.C. ", Canada should listen to intelligence community when deciding on Huawei, Canada should listen to intelligence community when deciding on Huawei – Nov 24, 2019, Click to share quote on Twitter: "I know what I found, and I know the discussions I had with certain people. , In July — in a case that mirrors such allegations —, Pfizer’s COVID-19 vaccine effective at preventing severe outcomes from 2 variants: studies, Missing woman found alive, living off grass in Utah canyon after 5 months, Click to share quote on Twitter: "In retrospect, it's clearly written on the wall how this happened. A collection of Canadian military records sought by Global News that could shed light on reports of massive espionage inside Nortel’s former Ottawa research headquarters are currently in a delayed vetting disclosure process, a Canadian military spokesman informed Global News. “many Chinese military” staff have received CanSino vaccine doses enabling them to soldier in “epidemic affected areas” without being infected, Chinese state media reported in November. So they can afford to burn money and undercut competitors in strategic areas, Tyrrell says. Inside the Chinese military attack on Nortel, “What is missing in the Nortel story is exploring the relationship that has been flagged about all those [Nortel] leaders going to China for decades,” Juneau-Katsuya said. Omny Studio is the complete audio management solution for podcasters and radio stations In 2004 Nortel cyber-security advisor Brian Shields investigated a serious breach in the telecom giant’s network. It needed personal protective equipment (PPE). In August, the NRC announced its collaboration with CanSino had ended because Chinese officials had failed to send CanSino’s vaccine for testing in Canada. Ex-B.C. Some experts have said CanSino’s vaccine has fallen behind the leading candidates in clinical tests, including Pfizer and Moderna, because CanSino’s vaccine is based on a modified cold virus, which makes it less effective for more elderly segments of populations. Telus and BCE did not respond to questions from Global News for this story. According to Shields, in just seven hours a Shanghai Faxian address downloaded 779 documents that day using the account of Nortel CEO Frank Dunn. And there is ample evidence of bad management at Nortel and lingering wounds from the 2000 crash, most notably in the accounting scandals that ultimately led to RCMP charges against Frank Dunn and two other Nortel managers. Huawei did not respond to a question from Global News, regarding the alleged equipment problems. The expert said Canadian intelligence eventually made the stunning discovery that the Chinese Communist Party was using Chinese organized crime gangsters, in attacks on Nortel. But Nortel’s brass was mostly disinterested in the investigation and did little more than change executive account passwords, Shields says. “There were visits by Nortel executives going to China to be wined and dined,” the expert said. Here’s why some firms still favour it. Suspects in alleged Markham illegal casino mansion linked to B.C. According to the U.S. Senate report and Western intelligence experts, the CCP uses all information gathered in its civilian talent recruiting to modernize its military. In a parliamentary hearing in late November regarding Canada’s troubled relations with China, McCallum said he regretted meeting with Chinese officials ahead of the fall 2019 federal election, and warning them a Conservative government would be less-friendly to Beijing than a Liberal government. Canadian mayors may have unwittingly been targets of Chinese influence campaign, “Nortel is one of those situations, where Canada had the lead internationally, and we let it go. Mike Zafirovski, Nortel’s CEO from 2005 to 2009, did not respond to questions for this story sent to his LinkedIn account. In a Canadian case study, Joske’s report found that the Fujian Provincial Overseas Chinese Affairs Office sent representatives worldwide in July 2016 to establish China’s talent recruitment stations. Wong, executive-director of Alliance Canada Hong Kong, an umbrella group for democracy advocates, says Chinese dissident groups are already tracked and targeted by the Chinese Communist Party in Canada, through Chinese social media apps like WeChat and TikTok. “It was China’s classic, Click to share quote on Twitter: "The best way to describe it is between a nation-state, industry and organized crime, there is cooperation to the point of collaboration and collusion. “It was the future. For his part, Ren Zhengfei — who did not respond to an interview request for this story — says Huawei did not steal Nortel’s IP, and it was the 2000 market crash that ultimately did in Nortel. Juneau Katsuya reviewed reports and photographs collected by Global News that detailed multiple forums attended by Yu involving Chinese recruiting and consular officials in Toronto. 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