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Miklos Bolza

China spy trial told of US approach, evacuation pledge

Alexander Csergo is on trial after providing reports to two suspected Chinese spies. (Bianca De Marchi/AAP PHOTOS)

An Australian IT consultant accused of working with Chinese spies in locked-down Shanghai claims US intelligence offered to whisk him out of the then-COVID-hit country.

Alexander Csergo is facing a NSW District Court jury trial accused of reckless foreign interference after providing reports to two individuals believed to be working for China's Ministry of State Security.

The 59-year-old had been working on telecommunications infrastructure in Shanghai through his IT consulting business Conversys.

He met the two suspected Chinese spies in December 2021 and was asked for private material on sensitive topics.

Oracle Team USA (file)
Alexander Csergo was working for US tech giant Oracle while dealing with Chinese handlers. (Dean Lewins/AAP PHOTOS)

He maintained contact until a trip to Australia in March 2023, when his eastern Sydney home was raided by police and domestic spies.

Csergo knew he was being monitored by his handlers, known only as Ken and Evelyn, crown prosecutor Jennifer Single SC said in her closing submissions on Tuesday.

While in contact with them, he was also working with US tech giant Oracle.

After his arrest in April 2023, he told federal police he believed US intelligence wanted to use his connection with Oracle to obtain sensitive Chinese telecommunications data.

A friend of his doing work with the US got in touch, the jury heard.

"If you have any concerns and need to get out of China, we can get you out in 24 hours," Csergo was told.

This was at the height of strict COVID lockdowns, Ms Single noted.

In working with Ken and Evelyn, Csergo compiled reports on topics such as mining, the German government, the AUKUS security agreement and the Quad partnership.

Virginia-class USS North Carolina (file)
The IT consultant reported on AUKUS, via which Australia plans to get nuclear-powered submarines. (Aaron Bunch/AAP PHOTOS)

These were handed over in hard copy or on a USB at face-to-face meetings at cafes or restaurants, which were sometimes devoid of other people, the jury heard.

In a WeChat thread, Ken said less-sensitive topics like bilateral trade were too normal and too boring to cover.

“You really like living close to the edge,” Csergo wrote.

“Dancing on the edge is my slogan. Exciting,” Ken replied.

He then told Csergo to "be brave" and seek material that could breach national security.

Instead, the 59-year-old gathered publicly available information, claiming to his handlers some came from sources including former prime minister Kevin Rudd.

The ex-Labor leader earlier told the trial he had never responded to the accused Chinese asset's approaches.

In her closing submissions to the jury, Ms Single said trust increased between Csergo and his two handlers, shown by cash payments rising from the equivalent of about $1000 to more than $6000.

Kevin Rudd (file)
Former prime minister Kevin Rudd denied responding to Alexander Csergo's approaches. (Mick Tsikas/AAP PHOTOS)

Csergo's reports might have been based on open-source material but it was the relationship with him that Ken and Evelyn found valuable, she said.

Jurors heard Csergo and Ken chatted about getting a massage at a bathhouse, watching the World Cup and going drinking.

In his police interviews, the Australian said his "game" was to provide material to Ken or Evelyn that was not real or confidential.

"You just keep it at the BS level," he told the officers.

The two handlers eventually found out, leading the IT consultant to fear he would not be allowed to leave China, Ms Single said.

But he managed to get out of the country while holding a "shopping list" of topics to research provided by Ken.

The Australian said he simply worked with the duo because he was under Chinese surveillance.

But were that true, he could have approached Australian authorities and he chose not to because he intended to return to China and continue his relationship with them, the prosecutor said.

The trial continues.

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