‘China Initiative’ Prosecutions Winding Down

Three academics prosecuted under the Department of Justice’s “China Initiative” all saw tempered outcomes in their cases last week, though none escaped punishment entirely.

A judge acquitted University of Kansas (KU) chemistry professor Franklin Tao of defrauding the Department of Energy and National Science Foundation by failing to disclose to them he was employed part-time by a Chinese university. The judge ruled the fraud statute did not apply because the Department of Justice could not show Tao engaged in a scheme to deprive the agencies or KU of something of value.

A jury already acquitted Tao of half the fraud charges DOJ brought against him but found him guilty of the others and also of making false statements to KU about his relationship with the Chinese university. The judge let the false statement verdict stand and sentencing will follow later.

In another case also involving connections to Chinese universities, materials scientist Zhendong Chen pleaded guilty to making false statements to NASA on a grant application in exchange for DOJ dropping fraud and conspiracy charges. Chen, who was fired by Texas A&M University in 2020, agreed to a prison sentence of 13 months that he already served following his arrest as well as to repayment of the $86,876 grant plus a $20,000 fine.

In the third case, Southern Illinois University mathematician Mingqing Xiao received a year’s probation and a $600 fine plus court fees for failing to report a Chinese bank account on his tax returns. Although a jury convicted him on that charge, for which DOJ sought a year of prison time, it acquitted him of making a false statement to NSF by not disclosing a connection to a Chinese university. The judge in the case previously threw out two other fraud charges.

DOJ discontinued the “China Initiative” label earlier this year and declared it would change its prosecutorial policy, but some cases brought under the initiative have not yet been fully resolved.