Specifically, Zhu created IND Lifetech Group—an affiliate of IND Group—and entered into a business relationship with XY, Incorporated, a U.S. company that specialized in biological engineering techniques that allowed for a high rate of selection for female (and thus milk-producing) Holstein cattle.[1]
During the decade or so following his arrival in Canada, Zhu created dozens of corporations (including IND and Ai De / Aide) in China, Canada, the United States, the British Virgin Islands, the Cayman Islands, and Uruguay. Court records indicate that, while Zhu employed many PRC nationals in these companies and even had them named as shareholders, they “were only shareholders ‘on paper’ and that, ‘in reality,’ Zhu owned these companies.”[2] Additionally, “[a]lthough the various companies appear to have been set up for different purposes, they were, from Zhu’s point of view, interchangeable as his wishes dictated” as “they were all under the common control and direction of Zhu as he dictated for his own purposes.”[3]
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Figure 21 - IND's corporate web, as outlined in corporate documents obtained by the Select Committee. It appears the web is not fully comprehensive of IND subisidiaries. Source: Select Committee.
Zhu used these corporations to steal valuable American intellectual property and unlawfully transfer it to the PRC. Zhu accomplished this in part by directing the wrongful transfer of confidential information and technology obtained from XY in Canada to IND’s PRC arms and affiliated PRC-based entities and individuals.[4] (IND’s presence in the PRC was significant—by October 2014, Zhu employed between 400-500 workers in the PRC at just one of IND’s location in
- ↑ XY, LLC v. Canadian Topsires Selection Inc., 2016 BCSC 1095 (“Zhu was the 100% owner of IND”).
- ↑ Id.
- ↑ Id.
- ↑ Id. at 216.
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