Captured US Spy Exposed China's Agents

The US spy China captured earlier this year managed to send the CIA information on many of China's spies in the US before being caught, sources tell Reuters, providing the first confirmation that the spy managed to significantly undermine Chinese intelligence operations. Indeed, President Hu Jintao was outraged by the leaks, and personally intervened to order an investigation into the case, the sources say.

The spy worked for vice minister Lu Zhongwei, and passed along "political, economic, and strategic intelligence," sources say. Lu, who is set to retire soon, has been spared punishment, indicating that China doesn't suspect him of spying too. "He did not change color," a source says. "Lu Zhongwei's problem was he used a person without investigating first." (More espionage stories.)