BEIJING – An American spy held by China's state security agents was sentenced to eight years in prison Monday for gathering data on the Chinese oil industry.

In pronouncing Xue Feng guilty of spying and collecting state secrets, the Beijing No. 1 Intermediate People's Court said his actions “endangered our country's national security.”
Its verdict said Xue received documents on geological conditions of onshore oil wells and a data base that gave the coordinates of more than 30,000 oil and gas wells belonging to China National Petroleum Corporation and listed subsidiary PetroChina Ltd. That information, it said, was sold to IHS Energy, the U.S. consultancy Xue worked for and now known as IHS Inc.
The sentence of eight years is close to the recommended legal limit of 10 for all but extremely serious violations. Though Xue, the 45-year-old geologist, is known as a meticulous, driven researcher, showed no emotion when the court announced the verdict, it stunned his lawyer and his sister, his only family member allowed in the courtroom.
“I can't describe how I feel. It's definitely unacceptable,” Xue's wife, Nan Kang, said by telephone, sobbing, from their home in a Houston, Texas, suburb where she lives with their two children, The Associated Press reported.
U.S. Ambassador to China Jon Huntsman attended the hearing to display Washington's interest in the case. He left without commenting and the U.S. Embassy issued a statement calling for Xue's immediate release and deportation to the United States.
Xue's sentence punctuates a case that has dragged on for more than two-and-a-half years and is likely to alarm foreign businesses unsure when normal business activities elsewhere might conflict with China's vague state security laws.
Chinese officials have wide authority to classify information as state secrets. Draft regulations released by the government in April said business secrets of major state companies qualify as state secrets.
“This is a very harsh sentence,” said John Kamm, an American human rights campaigner whom the State Department turned to for help last year to lobby for Xue's release. “It's a huge disappointment and will send very real shivers up the spines of businesses that do business in China.”
Agents from China's internal security agency detained Xue in November 2007 and tortured him, stubbing lit cigarettes into his arms in the early days of his detention. His case first became public when The Associated Press reported on it last November.
Like IHS, many multinationals have come to rely on people like Xue to run their China operations. Another China-born foreign national, Australian Stern Hu who worked for the global mining firm Rio Tinto, was sentenced in March to 10 years for bribery and infringing trade secrets that dealt with iron ore sales to Chinese companies.
Born in China, Xue earned a doctorate at the University of Chicago and became a U.S. citizen, returning to his native country to work. By all accounts, including witness statements cited in the court verdict, Xue poured his energies into his work for IHS, trying to gather information on China's oil industry, contacting former school mates from his university days in China.
Photo: Xue Min, second from left, listens to a court official near Tong Wei, the lawyer for her brother Xue Feng, outside the Beijing No. 1 Intermediate People's Court where sentencing for Xue Feng was to take place in Beijing, China, Monday, July 5, 2010. (AP photo)