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• The following is an excerpt from “Spyfail” by James Bamford.
• A spying suspect in the FBI may be largely responsible for unraveling the CIA’s Chinese spy network.

https://www.businessinsider.com/james-bamford-chinese-mole-fbi-cia-spy-network-gutted-2023-1

James Bamford

The FBI’s website carries a stark warning.

“The counterintelligence and economic espionage efforts emanating from the government of China,” it says, “are a grave threat to the economic well-being and democratic values of the United States. Confronting this threat is the FBI’s top counterintelligence priority.”

Perhaps far worse is the threat to the lives of scores of courageous Chinese agents who have volunteered to spy for the US within their own country. Over the past decade, more than a dozen agents recruited by the CIA have been killed or imprisoned.

It now turns out that it was a Chinese spying suspect within the FBI’s counterintelligence division who may have been largely responsible. This person is said to have gone undetected with his activities for upward of two decades, until his quiet arrest in 2020. In a Hawaiian jail, he has a little-known case wrapped in layers of secrecy as he awaits trail.

In James Bamford’s new book, “Spyfail: Foreign Spies, Moles, Saboteurs, and the Collapse of America’s Counterintelligence,” he peels back many of those hidden layers.

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THE RENDEZVOUS

In the spring of 2001, Chinese intelligence was on a very big roll. On April 1, a Navy EP-3 electronic spy plane, operated by the National Security Agency and on patrol along the Chinese coast, was forced to make an emergency landing on China’s Hainan Island. After evacuating the crew, Chinese intelligence agents went to work extracting some of the agency’s most secret espionage and cryptologic equipment, along with piles of documents classified above top secret. An enormous windfall, the hardware, software, and documents gave Chinese intelligence critical insight into the NSA’s targets in their country, and the methods used to spy on them. And less than a week earlier, Chinese intelligence came upon another intelligence bonanza when two former CIA clandestine officers, one born in Shanghai and the other in Hong Kong, agreed to change sides.

At the time, four years after the handover from Britain to China, much of Hong Kong remained a world of neon and noise. But now a great many of the tourists haggling over Rolex watches, checking into the Peninsula, and packing Lan Kwai Fong and other nightlife districts had a decidedly Mandarin accent. “Five years ago, everyone looked down on you if you spoke Mandarin,” said a Beijing executive living in Hong Kong. “Now, they know we’re the big bosses with the money.”

Despite predictions that the former colony would turn into a gray vista of hunched workers and nameless noodle shops, travelers from mainland China had become the principal source of visitors to Hong Kong. They were even spending more per capita than their American and Japanese counterparts. And March 2001 was an especially busy time. As soon as the Hong Kong Arts Festival ended, the Hong Kong International Film Festival began.

Deep in the shadows, the city had also become a major crossroads for Eastern and Western spies. “Hong Kong is a place where foreign intelligence agencies conduct a lot of activity,” admitted Li Gang, the deputy director of Beijing’s Liaison Office in the city. As the arts crowd checked out of their rooms and the film fans checked in, two former American spies quietly slipped into another hotel for a discreet rendezvous with their Chinese counterparts. They were brothers who had both worked as clandestine CIA officers in China, and now they were about to switch sides.

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