Chinese American businessman pleads guilty to smuggling military equipment such as water sensors

Qin Shuren, a Chinese-born businessman who lives in Massachusetts, pleaded guilty in federal court in Boston to illegally exporting to mainland China devices known as “hydrophones” that can be used to listen to underwater sounds. U.S. officials believe the equipment could help the Chinese Communist Party build an underwater drone fleet.

Chinese businessman Shuren Qin (pronounced Qin) pleaded guilty in court Wednesday (April 28) to U.S. charges. He pleaded guilty Wednesday in federal court in Boston to illegally exporting to China hydrophone devices that can be used to monitor underwater sounds.

Shuren Qin is a marine biologist and founder of a company that sells oceanographic instruments. He currently resides in Wellesley, Boston.

Qin is accused of illegally smuggling U.S. marine technology to benefit a Chinese Communist Party military research facility developing an underwater drone program. He pleaded guilty Wednesday to 10 counts, including conspiracy to violate U.S. export regulations, visa fraud, money laundering and smuggling.

According to a plea agreement between Qin Shurian and the U.S. Attorney’s Office in Boston, Qin admitted to using false shipping information to purchase 60 underwater listeners (hydrophones) from a U.S. supplier. However, he only admitted to charges related to the hydrophones. In exchange, U.S. prosecutors agreed to drop several other charges and also agreed to recommend that his sentence be set at the low end of the federal sentencing guidelines of 87 to 108 months.

Prosecutors said Qin misled the U.S. supplier by falsely claiming the devices were intended for a Chinese civilian researcher. Instead, they ended up without the necessary export licenses and were sent to a Chinese Communist Party research institute engaged in military research and involved in an undersea drone program.

U.S. prosecutors have also previously alleged that Qin exported unmanned underwater downloadable vehicles (UUVs) and robotic ships to the Chinese Communist Party. Between 2015 and 2018, Qin provided $8 million in goods to entities controlled by the Chinese Communist Party authorities. Prosecutors said his buyers included the South Sea Fleet and the Naval Submarine Academy of the Chinese Communist Navy.

Qin Shurian’s plea this time is reportedly conditional, and he may still appeal if the judge decides not to waive the evidence against him.

John Demers, assistant attorney general for national security, told a seminar at George Washington University on Wednesday that Chinese Communist spying and technology theft cases remain a top priority for the Biden administration’s Justice Department.