MONTREAL — A former researcher at Hydro-Québec's research institute, Yuesheng Wang, is facing charges of economic espionage for allegedly benefiting China. This case marks a significant development, as it represents the first instance of someone being charged under Canada's Security of Information Act. Wang, 38, has pleaded not guilty to this charge, as well as four other counts related to fraudulently using a computer, breach of trust, and committing preparatory acts on behalf of a foreign entity.
The prosecution claims that Wang's actions began with a publication released in March 2022, which raised alarms among Hydro-Québec's senior managers. Patrick Cyr, a manager overseeing Wang, stated during cross-examination that he did not believe he had an obligation to confront Wang about the concerns that arose from this publication. He noted that there were ongoing efforts at the utility to review internal publications and ensure compliance with the research institute's intellectual property rules.
The core of the Crown's case hinges on Wang's alleged failure to seek approval from Hydro-Québec's intellectual property committee before publishing his work. This committee is mandated to review any proposed academic articles, conferences, or patents submitted by employees. The allegations further suggest Wang submitted applications under China's Thousand Talents program, which is designed to attract foreign-trained scientists back to China, aligned with its technology acquisition strategies.
Wang is suspected of committing to assist Chinese entities in commercializing battery technologies that are vital to confidential research being conducted at Hydro-Québec. During his testimony, Cyr informed the court that the confidentiality of research conducted within the Center of Excellence in Transportation Electrification and Energy Storage (CETEES) is of utmost importance, particularly as it relates to advanced battery technologies.
Cyr further explained that the expectations for confidentiality extend to the details of research not yet published. Any information made public through publications or patents, however, does not fall under these constraints. Following the discovery of Wang's initial publication, an internal investigation was launched, leading to his suspension in August 2022 and eventual termination in November of the same year. After returning from a trip to China, Wang's computer was seized, and he lost access to Hydro-Québec's internal systems.
The trial has revealed that the departure of Karim Zaghib, the founder of the research institute, has led to heightened scrutiny and stricter enforcement of rules regarding confidentiality and external communications. Cyr testified that to safeguard sensitive information, Hydro-Québec blocked access to personal messaging applications on company computers and equipped employees with dedicated cameras for documenting their research.
Wang joined Hydro-Québec in 2016, but language barriers have posed challenges for him throughout his tenure. Notably, Wang does not speak French, which is the primary language for training and communication within the provincially-owned utility. Although there are annual mandatory code of ethics reviews, Wang's proficiency in French did not improve significantly during his six years at the facility.
Judge Jean-Philippe Marcoux, overseeing the case, has indicated that if Wang chooses to testify, it would likely need to be conducted in Mandarin due to difficulties in understanding his English accent. Additionally, the federal Crown prosecutor has mentioned the possibility of calling new witnesses to provide further testimony, signaling that the trial may develop additional complexities.
The proceedings are set to pause for one week, resuming on October 27, 2025, at the Longueuil courthouse, situated south of Montreal. The case continues to evolve as experts, witnesses, and legal representatives navigate the intricate allegations of espionage and the implications of Wang's actions at Hydro-Québec.
