US sanctions five China-based entities over alleged trade-secret theft

The department determined that Zhisuan had knowingly engaged in or benefited from significant theft of US trade secrets occurring on or after Jan. 5, 2023. Its fact sheet says Ding applied to MiraclePlus's incubation program while touting his experience with Google's technology and claiming Zhisuan could replicate Google's infrastructure. Bloomberg News describes Ding as a former Google engineer convicted in 2026 of stealing Google AI trade secrets.

The department's finding about MiraclePlus is different. It says the firm provided significant financial, material or technological support for the theft, provided goods or services in support of it, or benefited significantly from it. The other three designated entities are two venture capital funds managed by MiraclePlus, Phase I and Phase II, and Zhiyuan Enterprise, which is wholly owned by Phase I. The department says those three meet statutory criteria involving ownership or control by, or acting for or on behalf of, MiraclePlus, directly or indirectly.

The State Department says the sanctions specified in five provisions of the law apply to all five entities. Bloomberg News reports that the measures may include freezes on US assets and banking restrictions.