This report presents initial findings from analysis of 274 documented cases of Chinese worldwide espionage since the year 2000. Each of these technologies is identified as apriority requirementin Chinas State Council2015 strategic plan Made in China 2025.. Your article was successfully shared with the contacts you provided. The wide variance in sophistication of espionage tradecraft implies the idea of Islands of Excellence (see Figure 6) meaning China employs espionage tradecraft with varying degrees of sophistication and effectiveness. There have also been questions about how to limit hacking back so that a company engaged in hacking back is subject to appropriate U.S. government supervision and does not either intentionally or inadvertently escalate the situation. 9. Over the last five years, I compiled and analyzed 274 cases of Chinese espionage that have occurred since the year 2000. United States v. Franklin, Rosen, and Weissman was an early 21st century court case from the United States District Court for the Eastern District of Virginia.The government prosecuted one Department of Defense employee (Franklin) and two lobbyists (Rosen & Weissman) for the American Israel Public Affairs Committee (AIPAC) for allegedly disclosing national defense information to persons 'not . China has also tried to hack think tanks to understand policy and think tank engagement with government officials. The goal of these foreign influence operations directed against the United States is to spread disinformation, sow discord, push foreign nations policy agendas, and ultimately undermine confidence in our democratic institutions and values. The Trump administration has also begun to deploy targeted trade measures against Chinese beneficiaries of IP theft. Along with our domestic and foreign partners, we are collecting and analyzing intelligence concerning the ongoing threat posed by foreign terrorist organizations and homegrown violent extremists. Other U.S. agencies are also working to expand cutting-edge U.S. R&D. Recent high-profile announcements such as the Marriott hotel companys acknowledgement last week that cyber intruders had accessed the personal information of 500 million customers bring home the fact that despite billions of dollars of corporate investment in cybersecurity in recent years, many corporate networks remain all too vulnerable. China is stepping up anti-espionage activities amid worsening ties with the United States and a renewed focus on national security ahead of a key Communist Party anniversary later this year. Russia and China have been identified as . Espionage activities correlated to their sponsoring organization (the customer receiving the information or technology) showed four distinct clusters of Chinese organizations engaging in espionage. In modern day, it's been used against those . This has allowed U.S. companies such as Micron Technologies to sue Chinese companies in federal court for the Chinese companies theft of U.S. IP. Economic Espionage and Cybersecurity Espionage comes in different forms. The activities include assistance with specifications, forecasting, financing, procurement, quality assurance, order management, delivery, inventory management, distribution, human resources, information systems and reporting to improve the design and performance of country FP/RH supply chains (whether stand-alone or integrated) that manage and . I appreciate your continued support and look forward to answering any questions you might have. The International Trade Commission (ITC) has authority under Section 337 to investigate claims that an import uses stolen U.S. IP and to exclude infringing products, and has excluded a number of Chinese products in recent years. The only notable area in which China has shown minimal advancement has been in applying sophisticated espionage tradecraft. If the United States does not continue to make and expand R&D here in the U.S., China will eventually overtake our technological edge, regardless of how effective we are at preventing China from stealing, buying, or otherwise acquiring U.S. IP. Together, they make up 54 percent of cases. But China is investing billions of dollars in its own technological prowess and can draw on the expertise of millions of Chinese engineers and scientists who have studied at top universities globally. 2023 Center for a New American Security (en-US). Second, I will assess the policy responses that the U.S. has pursued to date to respond to this threat. The United States generally distinguishes between Chinese economic espionage intended to provide Chinese companies with a commercial advantage and traditional espionage intended to obtain information about the U.S. government, U.S. military capabilities, and other sensitive government and government-related information. Belgian authorities placed him in custody on arrival and put him on a plane to the United States (most likely with an FBI escort). Law.com Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms financials, staffing, clients, news and events. Broadly speaking, the government response can be divided into three parts: encouraging better defense; prosecuting spies; and increasing costs in an effort to punish and deter unconventional spying. I will focus my remarks on two aspects of Chinas unconventional espionage threat. The FBI assesses HVEs are the greatest, most immediate terrorism threat to the homeland. The FBI is the lead agency for exposing, preventing, and investigating intelligence activities in the U.S. Because much of todays spying is accomplished by data theft from computer networks, espionage is quickly becoming cyber-based. Your responsibility to report. Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms. Twenty years ago, I testified before a U.S. congressional committee on Chinas espionage operations in the United States. Zach Cooper at AEI published a report on Chinas cyber strategy this past fall that compiled dozens of examples of the kinds of information China tries to steal. Unsurprisingly, China is also targeting sectors critical to U.S. military dominance, like aerospace, according to a recent indictment. Spies might seem like a throwback to earlier days of world wars and cold wars, but they are more common than everand they are targeting our nations most valuable secrets. The distribution pattern shows activity concentrations occurring in high-tech sectors, manufacturing hubs, and business centers. But this is not just an election-cycle threat. The goal of cyber espionage, which may also be referred to as cyber spying, is to provide the attacker with information that gives them advantages over competing companies or governments. The FITF is uniquely positioned to combat this threat. Former U.S. Defense Secretary Robert Gates said in an interview that there are probably a dozen or 15 countries that steal our technology. In 2015 a South Korean company plead guilty to conspiring to steal proprietary DuPont information about Kevlar, the body armor material, and paid more than $300 million in fines and restitution. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. I'd the target takes the bait, the foreign intelligence officer recruits the target to move into a more clandestine relationship. The minimal application of tradecraft is expected, as these cases typically do not involve professional intelligence operatives (either case officers or agents). These include increased scrutiny of Chinese investments in key sectors, stricter. However, the threat posed by terrorismboth international terrorism (IT) and domestic violent extremismhas evolved significantly since 9/11. As former Cisco CEO John Chambers once said, There are two types of companies: those who have been hacked, and those who don't yet know they have been hacked.. CI-21 proposes significant changes in the way the United States government approaches, and organizes itself to meet, the threat of foreign espionage and intelligence gathering. Economic Espionage Act of 1996. The world of espionage is facing tremendous technological, political, legal, social, and commercial changes. Emily Kilcrease & Michael Frazer. The central government directly manages 102 of these firms considered critical to national and economic security. As the committee is well aware, the frequency and severity of malicious cyber activity on our nations private sector and government networks have increased dramatically in the past decade when measured by the amount of corporate data stolen or deleted, the volume of personally identifiable information compromised, or the remediation costs incurred by U.S. victims. What Joseph L. Rini Knows, Attorney Rachel Y. Marshall A Pillar of Strength for the Community, SpotDraft Raises $26 Million in Series A Funding for AI-Powered Legal Software, Access to the entire ALM network of websites, Unlimited access to the ALM suite of newsletters, Build custom alerts on any search topic of your choosing. The task force now brings together the FBIs expertise across the waterfrontcounterintelligence, cyber, criminal, and even counterterrorismto root out and respond to foreign influence operations. Just as our adversaries evolve, so, too, must the FBI. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. The United States has progressively expanded the scope of sanctions and entity-based export controls on Chinese persons (i.e., individuals and entities), primaril By The U.S. government has also worked to sharply limit the deployment of Chinese technology and equipment here in the U.S. that China could potentially use to facilitate its unconventional espionage in the years ahead. 13694 (2015) and E.O. When divided into the aforementioned categories (Espionage, Economic Espionage, ITAR, EAR, Covert Action) the 274 espionage cases show the percentages of operations as follows (Figure 1.). In collaboration with the National Counterintelligence and Security Center, the FBI released a short film to educate anyone with a trade secret about how they can protect it. With the broad distribution of social media, terrorists can spot, assess, recruit, and radicalize vulnerable persons of all ages in the U.S. either to travel to foreign lands or to conduct an attack on the homeland. Recent ISIS videos and propaganda have specifically advocated for attacks against soldiers, law enforcement, and intelligence community personnel. The Department of Justice has in recent years indicted numerous Chinese spies, hackers, and companies for their involvement in stealing U.S. IP. Journalists, military veterans, and judicial figures are being targeted by foreign espionage agencies at "unprecedented" levels, with the country's intelligence chief revealing a "hive of spies . If this is in fact the case then MSS performance is not likely to improve anytime soon. Revelations of broad-ranging Russian efforts to influence the 2016 presidential election, which resulted in criminal charges against multiple Russian intelligence officers brought by special counsel Robert Mueller, focused attention on criminal laws designed to prohibit the activities of foreign agents in the United States. This Committee and the Congress as a whole should consider legislative reforms to expand the reach of FARA or to adopt other disclosure legislation that would ensure that Chinese activities related to universities and other non-profits are fully subject to public disclosure requirements. In addition to its investigative work, the FBI works to raise public awareness and inform industry of the threats they face, through outreach activities. An official website of the United States government. But if China proves willing to make systemic changes, the administration should be willing to relax the trade remedies the U.S. has imposed, rather than locking the U.S. into an economic cold war with Beijing. Providing financial support to terrorist organization The MSS was formed in June 1983 by combining the espionage, counterintelligence, and security functions of the Ministry of Public Security and the Investigations Department of the Chinese Communist Party Central Committee. We must seek out new technologies and solutions for the problems that exist today as well as those that are on the horizon. The scope of the criminal activity, including evidence of involvement by a foreign government, foreign agent, or foreign instrumentality The degree of economic injury to the trade secret owner The . Economic Espionage and Trade Secret Theft . These diverse threats underscore the complexity and breadth of the FBIs mission: to protect the American people and uphold the Constitution of the United States. Espionage and counterespionage have been essential tools of statecraft for centuries, of course, and U.S. and Chinese intelligence agencies have been battling one another for decades. Crime and terrorist activity are an ever- present threat to our Nation. Similarly, CFIUS should ensure that if the Chinese government has stolen or attempted to steal U.S. technology, no Chinese company should be able to acquire a U.S. company that designs or makes the technology that China attempted to steal. U.S. Military or government site Those include going after terrorists and spies, including in cyberspace, countering foreign malign influence, enforcing our export controls and sanctions laws, and reviewing foreign investments in U.S. companies. I would add that U.S. universities should also increase the scrutiny of their collaborative research projects with Chinese institutions and researchers to make sure that U.S. institutions are not inadvertently facilitating the transfer of proprietary and/or sensitive technology and expertise to China, while continuing to engage in legitimate and positive research collaborations. Foreign travel of short duration The Economic Espionage Act (EEA)1996 Public Law 104-294, 110 Stat. At a minimum, there is no indication that the CCP or Chinese government have taken any measures to impede the illegal activities (illegal in the United States) of their state corporations and citizens. The scale and scope of China-nexus targeted intrusion activity is unlikely to contract in 2023, as cyber espionage remains a critical instrument to support the CCP's strategic and economic. About Us| Fifth, I would encourage Congress to carefully study proposals to enable U.S. companies who are victims of Chinese economic espionage to hack back. There are significant concerns about hacking back proposals but I believe the concept merits careful study. Figure 1: Categories of Chinese Espionage.
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