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After dinner, the Garratts got into an elevator that took them from the restaurant down to a lobby. The doors opened onto a swarm of bright lights and people with video cameras. But then some men grabbed the couple, separated them, and hustled them toward waiting cars. Everything happened fast, and very little made sense. When the Garratts first arrived in China, in , the country was still transitioning away from collective farms. Shanghai had only just opened up to foreign investment; the future megacity Shenzhen still had just a few hundred thousand inhabitants.

Over the ensuing three decades, the couple would watch as China hurtled from eighth-largest economy in the world to second-largest, powered, famously, by mass migrations of people into new industrial cities and the erection of a vast manufacturing and export sector. This extended campaign of commercial espionage has raided almost every highly developed economy.

British inventor James Dyson has complained publicly about Chinese theft of designs for his eponymous high-end vacuums. But far and away its biggest targets have been the trade and military secrets of the United States. And yet, despite a great deal of restlessness in the ranks of law enforcement and intelligence agencies, the United States was, for years, all but paralyzed in its response to Chinese hacking. China simply denied any hand in the thefts, professing to take great umbrage at the idea. American diplomats were skittish about upsetting a sensitive bilateral relationship.

John Carlin, who served as assistant attorney general for national security during the Obama administration, recalls one meeting with executives from a West Coast company whose intellectual property was being stolen by Chinese hackers. The executives even projected that, in seven or eight years, the stolen IP would kill their business model; by that point, a Chinese competitor would be able to undercut them completely with a copycat product.

Finally, between and , the US began to reach a breaking point. But it was far from clear how any government or company might successfully turn back the tide of Chinese incursions. President Obama pressed the issue of cyberthefts in his first meeting with President Xi in , only to be met with more denials. Attorney general Eric Holder took the podium to announce charges against five hackers for breaking into the systems of several US companies, including U. Steel, Westinghouse, and a renewable-energy outfit called SolarWorld.

Two of the men were even pictured in their crisp dress uniforms. The press conference marked the first time the US had ever indicted individual foreign agents for cyber intrusions. It made front-page headlines across the country, instantly bumping the issue of Chinese economic espionage off the back burner of public consciousness. At the Pittsburgh airport, Carlin lamented the obvious: None of the hackers would face a US courtroom anytime soon. The bureau will say only that it opened its investigation after seeing emails between them.

Since its completion, the C had become a key means of delivering troops, vehicles, and supplies to the front lines of the wars in Afghanistan and Iraq, as well as delivering humanitarian supplies the world over. American intelligence agencies knew that, for years, the Chinese had been struggling to build their own large cargo plane, a necessary tool for any modern military that wants to project its power over a large area. Right away, the FBI alerted Boeing to the intrusions.

Boeing declined to comment on this story.

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After that, agents in Los Angeles began wading through encrypted attachments and translating each message from Chinese. The emails would ultimately give them an incredibly detailed picture of the inner workings of a Chinese espionage operation. Not only that, they realized, it might also give them a chance to actually arrest someone.

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Two of the conspirators—the ones who did the actual hacking—were out of reach in China. He had two kids, both born in Canada; his wife had been a gynecologist, and his oldest son went to college in Switzerland. In , he was interviewed by The Wall Street Journal as part of a story about wealthy Chinese decamping for the West.

He said he was the son of an army officer and that he had made millions as an aerospace entrepreneur. He told the Journal that he found the rules of the West less restrictive. China's extended campaign of commercial espionage has raided almost every highly developed economy.

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But far and away its biggest targets have been the military secrets of the United States. From what the agents could reconstruct, the hacking conspiracy had begun as early as It was tedious work. Some of the file directories ran to thousands of pages; in one dump of nearly 1, pages, Su meticulously highlighted files that seemed most likely to be useful to his Chinese Army contacts—files with names like C17Hangar Requirements All told, according to their own accounting, Su and his two Chinese partners stole , files related to the C, totaling about 65 GB of data.

Investigators believe they pillaged MB of data related to the F Raptor, as well as files related to the F, including its flight test protocols, which Su carefully translated into Chinese. The more they dug, the more the agents realized what a uniquely valuable conspirator Su Bin was, perhaps even sui generis as a spy. He was conversant with the aerospace community, and he spoke English, Chinese, and the technical jargon of aviation in both languages, able to translate the complex world of industrial design schematics, plans, and handbooks.

According to court documents, the hackers covered their tracks by pinballing stolen files through a sophisticated international server network, with machines planted in the US, Singapore, and Korea. They carefully disguised documents as they stole them, so as to circumvent the internal intrusion alarms at Boeing. Ultimately, the files would be deposited on machines near Hong Kong and Macau. There, officials would pick them up and transfer them back to China—in person, further covering all tracks between the United States and China.

While the two hackers in China have not been charged publicly, the US government knows who they are; according to court records, investigators intercepted an email that one of the hackers had received with a copy of his own ID card, which included his photo, name, and date of birth. After their detention the Garratts found themselves caught in China's Kafkaesque justice system, interrogated regularly but with nothing to confess.

China denied the accusation. Given the chance to help break up a Chinese hacking ring, authorities north of the border were perhaps unusually motivated to help. In any case, they said yes.

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By June , the investigative teams knew that Su Bin was planning to leave the country for China—though no one knew for how long. They decided that now was the time to act. A few days before his scheduled trip, Canadian authorities pulled Su Bin over and arrested him. Right away, China knew that one of its most valuable intelligence assets had been caught.

International extraditions, even from close partners and allies, are always complicated. As Su Bin prepared for his initial court appearances, China quickly decided to send a not-so-subtle message to Canada. Their family retained James Zimmerman, an American lawyer with the firm Perkins Coie, who had spent nearly two decades working in Beijing. He began to piece together the case against the couple. The Chinese government, he realized, was leveling charges against Kevin Garratt that were almost a mirror image of the US charges against Su Bin.

While the investigators are not allowed to torture the suspects, mistreatment is a matter of definition.

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