Strategy Page on the most recent intelligence coup by the Chinese military:
Taiwan recently admitted that it had suffered some serious damage when it discovered that one of its air force officers (identified only as “Major Hao”) sold many technical details of the new E-2K AWACS (Airborne Warning and Control System) aircraft to China. Hao did it for money, and Taiwanese counterintelligence found over a dozen other Chinese intel operatives during the investigation that uncovered the E-2K leaks. Since the E-2K contains mostly American technology and is based on the E-2C use on American aircraft carriers, this intelligence disaster is going to cost America a lot as well. Since China now knows the details of how the E-2 electronics work, they can develop better ways to deceive and disrupt E-2 operations.
Earlier this year Taiwan received the last two of four E-2K aircraft from the U.S., where they have been sent for upgrading to the E-2C 2000 standard. The first two E-2Ks were sent in 2009. The upgrade cost about $63 million per aircraft. Taiwan bought two E-2Ks new in 2006 as well.
The Taiwanese E-2K is very similar to the American E-2C, which is being replaced with a newer model. In 2010 the U.S. Navy received its first E-2D aircraft. This is the latest version of the E-2 Hawkeye radar aircraft that was originally introduced in 1964. The two engine, 24 ton E-2 was never produced in large quantities (fewer than a hundred are in use). Six years ago the E-2 fleet reached a milestone of a million flight hours.
[…]
The U.S. usually does not export the latest versions of electronic equipment. Thus the Taiwan leak means the older American E-2C is compromised but not (to a great extent) the most recent E-2D model. But the Taiwanese are justifiably afraid that there will be even more reluctance by the United States to sell Taiwan the latest versions of anything because of the successful Chinese espionage efforts in Taiwan. Then again, maybe not. That’s because that espionage works both ways. The Taiwanese have been very successful using the same tactics (offering cash or using blackmail and other threats) against the Chinese. While the American and Taiwanese tech is more valuable (because it is more advanced) it’s useful to know the details of the best stuff the Chinese have.
