1 00:00:02,600 --> 00:00:08,800 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:13,520 --> 00:00:19,360 Speaker 2: Today's day is Wednesday, April twenty fifth, twenty eighteen. The 3 00:00:19,440 --> 00:00:25,759 Speaker 2: time is three twelve pm. The following is a consensual 4 00:00:26,040 --> 00:00:33,960 Speaker 2: body recording with the subject G Chow Chuen. The recording 5 00:00:33,960 --> 00:00:34,640 Speaker 2: starts now. 6 00:00:41,320 --> 00:00:43,519 Speaker 3: There's a guy sitting in a red Chevy Malibu in 7 00:00:43,560 --> 00:00:47,280 Speaker 3: front of an apartment complex near downtown Chicago. He's waiting 8 00:00:47,280 --> 00:00:50,040 Speaker 3: for someone to walk out of the apartment building. After 9 00:00:50,040 --> 00:00:53,360 Speaker 3: a few minutes, the person does. He's young, and he's 10 00:00:53,360 --> 00:00:55,880 Speaker 3: wearing a warm up jacket and glasses. He has a 11 00:00:55,920 --> 00:01:02,880 Speaker 3: buzz cut. His name is G Chow Chun. The guy 12 00:01:02,880 --> 00:01:05,800 Speaker 3: in the red car gets out, walks towards G and 13 00:01:05,880 --> 00:01:07,399 Speaker 3: yells to him in Vandarin. 14 00:01:09,959 --> 00:01:14,720 Speaker 4: You yes, hi Hi, How may I help you? He said, 15 00:01:14,720 --> 00:01:15,479 Speaker 4: A good time to talk. 16 00:01:15,800 --> 00:01:17,840 Speaker 5: I beg your pardon is something I like to. 17 00:01:17,840 --> 00:01:19,479 Speaker 4: Talk to you about. 18 00:01:21,240 --> 00:01:25,280 Speaker 6: We were all holding our breadth because this is that 19 00:01:25,360 --> 00:01:27,040 Speaker 6: interaction that we've prepared for. 20 00:01:27,800 --> 00:01:29,600 Speaker 1: The two men are being watched. 21 00:01:30,400 --> 00:01:33,360 Speaker 6: Geez a little confused, little flustered, and you can see 22 00:01:33,400 --> 00:01:34,399 Speaker 6: that in his body language. 23 00:01:34,640 --> 00:01:35,640 Speaker 5: He keeps this distance. 24 00:01:36,800 --> 00:01:39,319 Speaker 4: You are a fandom. An jine sent me to you. 25 00:01:41,040 --> 00:01:45,280 Speaker 1: This reference to Nanjing it's code. It's a way of saying, hey, 26 00:01:45,959 --> 00:01:49,800 Speaker 1: we know the same people. And G he understands it. 27 00:01:50,480 --> 00:01:53,640 Speaker 5: Oh, I get it now. I think. 28 00:01:53,680 --> 00:01:58,920 Speaker 6: At that point, Jee's demeanor relaxed and their body language 29 00:01:58,960 --> 00:01:59,920 Speaker 6: got closer. 30 00:02:01,960 --> 00:02:04,720 Speaker 5: He said to talk roughly, how long will it take? 31 00:02:05,080 --> 00:02:06,960 Speaker 4: McCalls puck over there in red. 32 00:02:07,040 --> 00:02:10,200 Speaker 5: No problem, No problem. 33 00:02:10,440 --> 00:02:13,120 Speaker 1: The two men walked towards the red car and get in. 34 00:02:18,800 --> 00:02:21,119 Speaker 4: I'm not sure if you are aware something went down 35 00:02:21,160 --> 00:02:22,200 Speaker 4: with the friends in on Jean? 36 00:02:22,560 --> 00:02:23,320 Speaker 5: I am not aware. 37 00:02:23,480 --> 00:02:24,920 Speaker 4: Do you know whom I am referring to? 38 00:02:26,000 --> 00:02:28,680 Speaker 1: She hesitates. The man pulls out his phone. 39 00:02:31,520 --> 00:02:32,280 Speaker 4: Let me show you this. 40 00:02:36,680 --> 00:02:39,400 Speaker 1: Shoey and Jean shoe Yan June. 41 00:02:44,960 --> 00:02:45,799 Speaker 5: I have heard of him? 42 00:02:46,240 --> 00:02:49,040 Speaker 4: Have you heard that something happened to him? Viciately, I 43 00:02:49,080 --> 00:02:49,880 Speaker 4: am not aware. 44 00:02:50,960 --> 00:02:53,679 Speaker 3: The stranger says his name is Chen and suggests that 45 00:02:53,680 --> 00:02:55,799 Speaker 3: the two of them goes somewhere more private than this car. 46 00:02:56,360 --> 00:02:58,040 Speaker 3: He says he has a room at the Hyatt, which 47 00:02:58,080 --> 00:03:01,079 Speaker 3: is nearby. At first, G tries to get out of it. 48 00:03:02,400 --> 00:03:05,760 Speaker 5: I really don't have time right now, I apologize. 49 00:03:05,760 --> 00:03:08,320 Speaker 3: But Chen pushes back, This is. 50 00:03:08,320 --> 00:03:12,320 Speaker 4: Important and people have to issues such as this. Talk 51 00:03:12,400 --> 00:03:14,919 Speaker 4: with you. They come to me. But I do not 52 00:03:15,040 --> 00:03:18,400 Speaker 4: want to talk too much about it, because okay, I understand. 53 00:03:19,080 --> 00:03:19,760 Speaker 3: G gives in. 54 00:03:20,320 --> 00:03:24,440 Speaker 6: They drive to the hotel, and it was immediate, let's 55 00:03:24,440 --> 00:03:27,800 Speaker 6: start moving, let's start getting into place. So at that 56 00:03:27,880 --> 00:03:31,440 Speaker 6: point I left for the hotel and got to the lobby. 57 00:03:32,120 --> 00:03:34,639 Speaker 1: Chen parks the car and the two men walk into 58 00:03:34,680 --> 00:03:35,200 Speaker 1: the hotel. 59 00:03:37,160 --> 00:03:40,520 Speaker 6: I am simply a spectator sitting near the hotel bar 60 00:03:41,000 --> 00:03:44,720 Speaker 6: and jok my afternoon. But my true goal is to 61 00:03:44,920 --> 00:03:48,640 Speaker 6: keep my eyes on the two individuals that are briskly 62 00:03:48,720 --> 00:03:51,040 Speaker 6: walking into the hotel lobby and making their way to 63 00:03:51,120 --> 00:03:51,760 Speaker 6: the elevator. 64 00:03:52,880 --> 00:03:54,920 Speaker 1: The two men take the elevator up to a room. 65 00:03:55,520 --> 00:03:58,080 Speaker 1: G sits down at a small table at the foot 66 00:03:58,080 --> 00:03:58,960 Speaker 1: of the unmade bed. 67 00:03:59,440 --> 00:04:02,080 Speaker 6: We'd already got into the hotel room and pleased a camera. 68 00:04:03,240 --> 00:04:05,720 Speaker 1: Chen takes off his coat and drapes it over a chair. 69 00:04:06,360 --> 00:04:09,920 Speaker 1: He's dressed like an accountant, a blue button down khakis 70 00:04:10,400 --> 00:04:14,120 Speaker 1: and a cell phone holster. He closes the curtains, but 71 00:04:14,600 --> 00:04:19,560 Speaker 1: that plunges the room into complete darkness, so he reopens them. 72 00:04:20,120 --> 00:04:21,760 Speaker 1: They both laugh awkwardly. 73 00:04:24,640 --> 00:04:27,080 Speaker 3: Chen sits down. He pulls a sheet of paper out 74 00:04:27,080 --> 00:04:30,080 Speaker 3: of his pocket, unfolds it, and hands it across the table. 75 00:04:30,680 --> 00:04:34,200 Speaker 3: It's a recent article from a Belgian newspaper. Chinese spy 76 00:04:34,760 --> 00:04:37,919 Speaker 3: arrested in Brussels at the request of the United States. 77 00:04:38,800 --> 00:04:42,120 Speaker 3: The spy is Shoe Yan June, the same person Chen 78 00:04:42,200 --> 00:04:45,320 Speaker 3: name dropped a G back in his car. G knows 79 00:04:45,360 --> 00:04:48,919 Speaker 3: Shoe Yan June well. Shoe works for China's Ministry of 80 00:04:48,920 --> 00:04:53,680 Speaker 3: State Security, or MSS, and so does G. Both of 81 00:04:53,720 --> 00:04:54,760 Speaker 3: them are spies. 82 00:04:57,040 --> 00:05:02,080 Speaker 6: We were aware of G Chao chun relationship with his 83 00:05:02,240 --> 00:05:07,800 Speaker 6: MSS handler Zu Yanjin. Our goal was to use the 84 00:05:07,880 --> 00:05:11,120 Speaker 6: information that his handler was arrested. 85 00:05:11,680 --> 00:05:14,600 Speaker 1: Chen tells G that the friends in Nanjing don't know 86 00:05:14,680 --> 00:05:18,920 Speaker 1: how Hue Yan Jean's cover was blown. 87 00:05:19,720 --> 00:05:22,000 Speaker 4: We do know if the problem was with your communications 88 00:05:22,000 --> 00:05:25,440 Speaker 4: with them. We don't know why is the US onto him. 89 00:05:25,600 --> 00:05:27,440 Speaker 4: So I was sent to let you know to stop 90 00:05:27,480 --> 00:05:28,760 Speaker 4: contacting them for now. 91 00:05:29,080 --> 00:05:33,120 Speaker 3: Okay, Chen warns G you could now be in danger. 92 00:05:34,080 --> 00:05:36,720 Speaker 3: He hands GA cell phone. He says G should only 93 00:05:36,760 --> 00:05:39,839 Speaker 3: contact him from now on and only on this device. 94 00:05:40,720 --> 00:05:44,120 Speaker 6: Your handler was arrested. Don't talk to anybody else this time. 95 00:05:44,440 --> 00:05:46,560 Speaker 6: Any information that you need to relay back should go 96 00:05:46,600 --> 00:05:46,880 Speaker 6: through me. 97 00:05:47,800 --> 00:05:50,880 Speaker 3: Chen's making it clear I am now the only person 98 00:05:50,960 --> 00:05:51,640 Speaker 3: you can trust. 99 00:05:53,320 --> 00:05:55,919 Speaker 4: So they sent me here to talk to you, but 100 00:05:56,000 --> 00:05:59,279 Speaker 4: at this time, please stay low key. Don't send them 101 00:05:59,400 --> 00:06:03,200 Speaker 4: any test messages, don't send them recheck messages, don't email them, 102 00:06:03,320 --> 00:06:06,840 Speaker 4: because we don't know where things went wrong, So like 103 00:06:07,040 --> 00:06:08,559 Speaker 4: nothing had happened at normal. 104 00:06:09,080 --> 00:06:12,880 Speaker 5: Uh huh. 105 00:06:13,000 --> 00:06:15,760 Speaker 1: The two men leave the hotel room and Chan drives 106 00:06:15,800 --> 00:06:18,719 Speaker 1: G back to his apartment. Before G gets out of 107 00:06:18,720 --> 00:06:23,320 Speaker 1: the car, Chen makes sure he has the cell phone. 108 00:06:24,279 --> 00:06:27,080 Speaker 4: Did you crap the cell phone? Yes, it's in my pocket. 109 00:06:28,200 --> 00:06:30,720 Speaker 4: Thank you for your help. Give me a bit of time. 110 00:06:30,960 --> 00:06:32,240 Speaker 4: Don't tell anyone about. 111 00:06:31,960 --> 00:06:33,280 Speaker 5: This, okay. 112 00:06:35,240 --> 00:06:39,080 Speaker 1: The whole interaction lasts about two hours. Chan drives off 113 00:06:39,200 --> 00:06:41,840 Speaker 1: parks and speaks into a hidden microphone. 114 00:06:43,760 --> 00:06:47,200 Speaker 2: Today day is April twenty fifth, twenty eighteen. The time 115 00:06:47,279 --> 00:06:52,520 Speaker 2: is five three pm, ending the consentual monitoring. 116 00:07:00,800 --> 00:07:03,640 Speaker 3: What G didn't know that afternoon was that this stranger 117 00:07:03,680 --> 00:07:06,960 Speaker 3: off the street who knew his name and his biggest secret, 118 00:07:07,640 --> 00:07:11,840 Speaker 3: was actually an undercover FBI agent, and the person watching 119 00:07:11,880 --> 00:07:13,240 Speaker 3: them was an agent two. 120 00:07:14,600 --> 00:07:16,400 Speaker 1: A lot of what the undercover agent had said to 121 00:07:16,480 --> 00:07:19,720 Speaker 1: G was a lie, but one key detail was true. 122 00:07:20,480 --> 00:07:23,600 Speaker 1: Hue Yen June, G's MSS handler had been. 123 00:07:23,560 --> 00:07:27,720 Speaker 7: Arrested, who announced federal criminal charges for conspiracy to commit 124 00:07:27,840 --> 00:07:31,080 Speaker 7: economic espionage and theft of trade secrets che in. 125 00:07:31,040 --> 00:07:32,520 Speaker 4: Federal court in Cincinnati. 126 00:07:32,600 --> 00:07:35,920 Speaker 1: Chue wasn't just G's handler. He was running MSS operations 127 00:07:36,040 --> 00:07:38,520 Speaker 1: all over the world, and he was at the center 128 00:07:38,560 --> 00:07:41,280 Speaker 1: of one of the most significant spy rings the FBI 129 00:07:41,440 --> 00:07:42,640 Speaker 1: has ever taken down. 130 00:07:46,720 --> 00:07:50,320 Speaker 3: The MSS is believed to be the world's largest intelligence agency, 131 00:07:51,080 --> 00:07:53,600 Speaker 3: but the people who work there are basically ghosts. We 132 00:07:53,760 --> 00:07:56,200 Speaker 3: rarely learn their names, and even when we do, it's 133 00:07:56,280 --> 00:08:00,000 Speaker 3: usually an alias. Chu Yen June was the first intelligence 134 00:08:00,120 --> 00:08:03,800 Speaker 3: officer ever to be lured out of China, arrested and 135 00:08:03,840 --> 00:08:04,760 Speaker 3: tried in the US. 136 00:08:05,840 --> 00:08:08,600 Speaker 8: We had never been able to convict in the United 137 00:08:08,640 --> 00:08:12,480 Speaker 8: States and put in prison a staff MSS officer, so 138 00:08:12,560 --> 00:08:15,280 Speaker 8: it was very clear to me that we were making history. 139 00:08:16,520 --> 00:08:19,600 Speaker 3: What this case cracked open for the first time was 140 00:08:19,600 --> 00:08:23,440 Speaker 3: a view from inside the MSS, revealing thousands of pages 141 00:08:23,480 --> 00:08:29,000 Speaker 3: of emails, chats, audio recordings, classified Chinese government documents, even 142 00:08:29,080 --> 00:08:30,520 Speaker 3: Chu's personal diary. 143 00:08:30,920 --> 00:08:33,840 Speaker 1: It was just strange the way he kept records of everything, 144 00:08:34,440 --> 00:08:37,599 Speaker 1: not only what happened, but his own feelings about them. 145 00:08:37,920 --> 00:08:41,880 Speaker 7: I now have several terabytes of an MSS officer, no doubt, 146 00:08:41,920 --> 00:08:45,840 Speaker 7: no question of his life. And that's the unicorn. 147 00:08:48,480 --> 00:08:51,080 Speaker 1: At the heart of Hugh's mission was an advanced technology 148 00:08:51,120 --> 00:08:53,760 Speaker 1: that China has been after for years, one that has 149 00:08:53,800 --> 00:08:59,280 Speaker 1: proven uniquely difficult to copy, much lesser pass ready to 150 00:08:59,320 --> 00:09:02,880 Speaker 1: take offs about to takeo the jet engine. 151 00:09:03,160 --> 00:09:06,280 Speaker 9: The jet engine one of the marvels of this century 152 00:09:06,280 --> 00:09:06,880 Speaker 9: of marbles. 153 00:09:08,000 --> 00:09:10,080 Speaker 1: It was a marvel when it was invented over eighty 154 00:09:10,160 --> 00:09:13,520 Speaker 1: years ago, and it still is today. Only a few 155 00:09:13,559 --> 00:09:16,760 Speaker 1: countries in the world know how to make them really well. 156 00:09:17,480 --> 00:09:20,000 Speaker 10: China has said this is a national priority that we 157 00:09:20,080 --> 00:09:22,840 Speaker 10: get this information. The MSS was tesked to do it. 158 00:09:23,160 --> 00:09:25,800 Speaker 10: It fell down to Huey Nun at that time. 159 00:09:29,360 --> 00:09:31,520 Speaker 4: He's right out of Central Casting ju. 160 00:09:31,520 --> 00:09:35,960 Speaker 8: Is basically out there trying to steal corporate secrets. Is 161 00:09:36,040 --> 00:09:40,120 Speaker 8: doing that with the full support and cooperation of his government. 162 00:09:40,160 --> 00:09:43,559 Speaker 10: He did it multiple times over multiple years, right through 163 00:09:43,679 --> 00:09:45,199 Speaker 10: extensive network around the world. 164 00:09:45,640 --> 00:09:47,720 Speaker 4: These are things that could be catastrophic. 165 00:09:47,880 --> 00:09:51,200 Speaker 11: The idea that we could get shoe it opens up 166 00:09:51,320 --> 00:09:55,160 Speaker 11: so many doors to understanding what the Chinese government is 167 00:09:55,240 --> 00:09:57,600 Speaker 11: up to and what information they have about us, how 168 00:09:57,600 --> 00:09:58,000 Speaker 11: they work. 169 00:09:58,280 --> 00:10:00,800 Speaker 4: It's like a once in a lifetime of opportunity. 170 00:10:00,800 --> 00:10:04,640 Speaker 8: Because the American people truly understood the scope of Chinese 171 00:10:04,760 --> 00:10:08,199 Speaker 8: espionage inside the United States right now, they'd be shocked, 172 00:10:08,720 --> 00:10:09,640 Speaker 8: they'd be outraged. 173 00:10:09,679 --> 00:10:11,959 Speaker 12: It's the people of the United States who are the 174 00:10:12,080 --> 00:10:15,480 Speaker 12: victims of what amounts to Chinese theft on a scale 175 00:10:15,640 --> 00:10:19,760 Speaker 12: so massive that it represents one of the largest transfers of. 176 00:10:19,720 --> 00:10:21,959 Speaker 1: Wealth in human history. 177 00:10:22,000 --> 00:10:25,800 Speaker 10: Stealing American technology, giving it to Chinese companies who can 178 00:10:25,880 --> 00:10:29,120 Speaker 10: then undercut American companies and Americans go out of business. 179 00:10:29,640 --> 00:10:32,920 Speaker 10: That is their stated goal. They want to replace the 180 00:10:33,040 --> 00:10:36,440 Speaker 10: United States as the world's only superpower, and they're on 181 00:10:36,520 --> 00:10:38,600 Speaker 10: track to do what their claiming they're going to do. 182 00:10:43,960 --> 00:10:46,680 Speaker 3: There's a lot of change and straight up chaos happening 183 00:10:46,760 --> 00:10:49,560 Speaker 3: right now, some of it manned up being noise, but 184 00:10:49,880 --> 00:10:52,960 Speaker 3: we are witnessing the formation of a new world order, 185 00:10:53,600 --> 00:10:57,040 Speaker 3: and one thing's clear. China is the new economic and 186 00:10:57,120 --> 00:11:01,560 Speaker 3: military superpower alongside the US. The two countries have been 187 00:11:01,600 --> 00:11:04,040 Speaker 3: going head to head for the last few decades. Not 188 00:11:04,120 --> 00:11:06,559 Speaker 3: that long ago, the US was still ahead of China 189 00:11:06,640 --> 00:11:11,880 Speaker 3: in almost every advanced technology. That time has passed, China's 190 00:11:11,880 --> 00:11:14,360 Speaker 3: caught up in so many ways, thanks to a ton 191 00:11:14,360 --> 00:11:25,480 Speaker 3: of investment, talent, innovation, and one more thing spying. From 192 00:11:25,520 --> 00:11:30,280 Speaker 3: Bloomberg News and iHeart Podcasts. This is the Sixth Bureau. 193 00:11:31,040 --> 00:11:32,680 Speaker 3: I'm Jordan Robertson and. 194 00:11:32,640 --> 00:11:37,360 Speaker 1: I'm Drake Bennett. This is a story of the inner 195 00:11:37,360 --> 00:11:40,480 Speaker 1: workings of one of the world's most mysterious and powerful 196 00:11:40,520 --> 00:11:45,600 Speaker 1: spy agencies, in how one man's ambition and mistakes opened 197 00:11:45,640 --> 00:11:51,520 Speaker 1: its vault of secrets. 198 00:12:00,040 --> 00:12:05,440 Speaker 9: On the next episode, we are in the business of 199 00:12:05,520 --> 00:12:11,120 Speaker 9: exploiting your weakness, your needs, your vulnerabilities, and we're good 200 00:12:11,120 --> 00:12:11,400 Speaker 9: at it. 201 00:12:11,880 --> 00:12:14,840 Speaker 1: That recording was almost dumb luck. I cannot believe they 202 00:12:14,840 --> 00:12:16,240 Speaker 1: didn't turn that recording off. 203 00:12:16,720 --> 00:12:19,000 Speaker 7: The helicopter that the Marine Corps is going to fly, 204 00:12:19,080 --> 00:12:22,360 Speaker 7: the next level helicopter. There's no reason that the Chinese 205 00:12:22,400 --> 00:12:25,040 Speaker 7: governm needs to know the specifications of that. There's no 206 00:12:25,080 --> 00:12:27,520 Speaker 7: reason an employee of any American company should be prepared 207 00:12:28,040 --> 00:12:29,600 Speaker 7: to pass that sort of information over