"We can not tolerate a nation's stealing our firepower and the fruits of our brainpower".
He has been transferred to the US for prosecution on economic espionage charges, US Justice Department officials said.
Benjamin Glassman, U.S. attorney for Ohio's southern district, said no military information was targeted, but any attempt by other countries to "grow companies at America's expense" is considered a threat to national security.
The extradition comes amid US suspicion of Chinese intelligence gathering campaigns against the U.S.as well as an escalating trade war between the two countries.
The MSS is a civilian spy agency responsible for counterintelligence, foreign intelligence and domestic political security.
"This indictment alleges that a Chinese intelligence officer sought to steal trade secrets and other sensitive information from an American company that leads the way in aerospace", Assistant Attorney General John Demers said in the release.
"This unprecedented extradition of a Chinese intelligence officer exposes the Chinese government's direct oversight of economic espionage against the United States", said Bill Priestap, the assistant director of the FBI's counterintelligence division. After his appeals failed, he was extradited to the United States on Tuesday and made his first court appearance Wednesday afternoon in federal court in Cincinnati. GE Aviation has spent decades developing its unique jet engines and fan blades. "We will not tolerate a nation that reaps what it does not sow". It also said he made contact with experts working for the firms and recruited them to travel to China, often for the initial goal of delivering a university presentation and paying their costs and a stipend.
"I can't recall an economic espionage case where we first arrested the person they were running inside the United States and then got the person running him from overseas, " said Carlin, author of the forthcoming book Dawn of the Code War.
According to court documents, he planned to obtain "highly sensitive information" from their lectures.
The operation began in December 2013 and continued until Xu's arrest.
The case comes amid a brewing trade war sparked largely by US accusations China coerces foreign companies into handing over technology in return for access to the Chinese market.
Last month, the USA justice department confirmed the arrest of a Chinese citizen in Chicago on charges he was an undercover agent for a high-ranking Chinese intelligence official who was trying to recruit engineers and scientists.
Ji targeted individuals in science and tech industries, seven of whom worked for or recently retired from USA defense contractors. All were naturalised USA citizens born either in mainland China or the self-governed island of Taiwan.