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Author Topic: Chinese Spies Engaged in Massive Theft of U.S. Technology  (Read 77 times)
Hydrogen
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April 14, 2018, 04:07:36 AM
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China is engaged in large-scale theft of American research and technology from universities, using spies, students, and researchers as collectors, experts told Congress on Wednesday.

Compounding the technology theft, the administration of President Barack Obama weakened U.S. counterintelligence efforts against foreign spies by curbing national-level counterspy efforts, a former counterintelligence official disclosed during a House hearing.

Michelle Van Cleave, former national counterintelligence executive, said shortly after the creation of the office of the director of national intelligence in 2004, a national counterspy program against foreign spies was restricted during the administration of President George W. Bush.

"Unfortunately, the backsliding continued under President Obama," Van Cleave told two subcommittees of the House Science, Space, and Technology Committee.

Van Cleave said a directive issued by then-DNI James Clapper in 2013 and still in force reduced the national counterintelligence program authority by directing all counterspy programs to be run by individual departments or agencies.

"The national head of counterintelligence was rebranded director of a security and CI center, his duties further dissipated by the fixation on leaks and insider threats driven by the grievous harm done by Snowden, Manning, et al," Van Cleave said, referring to intelligence leakers Edward Snowden, an NSA contractor, and Army Sgt. Bradley Manning.

"Gone was any dedicated strategic [counterintelligence] program, while elite pockets of proactive capabilities died of neglect," she said.

"Read between the lines of existing CI guidance and you will not find a whiff of a national-level effort left, other than caretaker duties such as taking inventory and writing reports."

Several intelligence and security experts testified during the hearing that China poses the most significant threat of technology theft from an estimated $510 billion spent annually on U.S. research and development.

"China has a government-directed, multi-faceted secret program whose primary task is technology acquisition, as well as a highly refined strategy to develop and exploit access to advantageous information through the global telecommunications infrastructure," Van Cleave said.

Along with Russian intelligence agents, Chinese technology spies have developed specific lists of technology for theft. Beijing uses clandestine agents, front companies, and joint research ventures in the theft program.

"Indeed, the United States is a spy's paradise," Van Cleave said. "Our free and open society is tailor-made for clandestine operations."

Michael Wessel, chairman of the congressional U.S.-China Economic Security Review Commission, testified that the Chinese are focused on stealing American advanced technology related to artificial intelligence, robotics, and other cutting edge technology.

Beijing has national-level programs to obtain advanced technologies with both military and commercial applications. They include acquisition of know-how related to new energy vehicles, advanced information technology, biotechnology, new materials, aerospace, ocean engineering, railway systems, robotics, power equipment, and agricultural machinery.

"In the case of robotics and AI, two fields of study with the potential to fundamentally change the international economy as well as the future of war-fighting, China has released the Robotics Industry Development Plan and Next Generation Artificial Intelligence Development Plan with the goals of China assuming global leadership in the coming decades," Wessel said.

China also is infiltrating American universities by funding language and cultural centers called Confucius Institutes that are being used as cover for technology theft. About 100 of the institutes are operating on American campuses and use their funding as part of "soft power" efforts in the United States.

China is also using some of the 350,000 Chinese students in the United States for intelligence work. Chinese spies recruit students with appeals such as "can you help China?" Wessel said.

Recent spy cases have included an electrical engineering professor at the University of Tennessee, John Reese Roth, who in 2008 was convicted of illegally sending defense technology through Chinese students back to China.

In 2009, Ruopeng Lieu, a researcher at Duke University, passed sensitive technology data to China. The information helped Beijing create the Kuang-Chi Science Ltd, a multibillion metamaterials company engaged in wireless internet and mobile payment fields.

In 2015, Chinese professors were among six defendants charged with economic espionage by the Justice Department. An indictment charged stolen American trade secrets were used to assist Chinese universities and state-run companies in China.

Wessel said 20 percent of those working on advanced artificial intelligence at the Berkeley Artificial Intelligence Research Lab are Chinese nationals. Also, 30 of the 38 post-doctorial researchers at the University of Maryland's Bing Nano Research Group are from China, he said.

"While we should continue to work to contribute to the world's efforts to address the most vexing problems facing the world, we must take greater steps to protect the fruits of our work," Wessel said. "Efforts to infiltrate our universities and labs and exfiltrate their work must be a greater priority."

Van Cleave, the former counterintelligence official, said greater efforts are needed to stem the loss of technology to China.

"Counterintelligence—identifying, assessing, and neutralizing foreign intelligence threats—has been little more than an afterthought in U.S. national security strategy, a legacy of neglect that has cost us dearly in lives lost, resources squandered, and dangers unchecked," she said.

Counterspy efforts currently are divided among the FBI, CIA, and Pentagon. The division has created gaps allowing foreign spies to operate in the United States with impunity.

Congress passed the Counterintelligence Enhancement Act in 2002 to fix the problems, but intelligence bureaucracies resisted the reforms and as a result counterspying has been weakened, not improved, Van Cleave said.


"U.S. counterintelligence is finely tuned to work individual cases, but it is not postured globally to detect, deter, or disrupt the intelligence activities of China or any other foreign power, or to execute strategic counterintelligence operations," she said.

"We know surprisingly little about adversary intelligence services relative to the harm they can do."

Van Cleave urged going on the offense against foreign spies by penetrating and disrupting foreign intelligence organizations before they reach the United States.

The goal is to degrade foreign spy services and their ability to conduct operations against the United States.

"We can chase individual spies or technology thieves case by case, or we can target the services that send them here," Van Cleave said. "In short, we can go on offense but national leadership must be willing to direct and empower America's counterintelligence enterprise to carry out that vital mission."

Joel Melstad, a spokesman for the National Counterintelligence and Security Center, did not directly address Van Cleave's criticism. But he said: "Our workforce remains strongly focused on strategic counterintelligence capabilities."

Melstad said that other than the name change, counterintelligence authorities of the director of the National Counterintelligence and Security Center remain the same as those under the 2002 law.

"And while we must respond to demand signals from our government partners concerning important issues like insider threats and leaks, we have not lost sight of the larger strategic CI goal," Melstad said.

The hearing was a joint session of the committee's research and technology subcommittee and oversight subcommittee.

Oversight subcommittee chairman Ralph Abraham (R., La.), told the hearing China is the most aggressive at stealing U.S. technology but the problem involved other foreign nations as well and the activities must be stopped.

"Essentially, China steals our fundamental research and quickly capitalizes by commercializing the technology," he said.

Research and technology subcommittee chairman Rep. Barbara Comstock (R., Va.) said the theft of American technology is a serious problem.

"It is imperative that our academic institutions not close their eyes to the very real threat posed by foreign intelligence spies," she said. "They cannot be blinded by naiveté or ignorance when distinguishing between friend and foe."


http://freebeacon.com/national-security/chinese-spies-engaged-massive-theft-u-s-technology/

....

This is intriguing and should emerge as a relevent point during the USA versus china "trade war". I think that japan and other european nations have similar complaints towards china, which could unify them and serve as a motive to crackdown on china for these types of practices. If you've noticed the tendency china has to pirate video game consoles, hand held devices, electronics, CD's, DVD's or anything else. That technology pirated by china represents billions if not trillions of dollars of lost revenue globally. On top of that china has been known to steal defense technology, patented and copyrighted intellectual property and many different types of things which the united states, japan and other nations have spent large sums of money to develop.

It will be interesting to see how things progress. I think that perhaps americans and others should be mad that china steals many of the things their taxpayer dollars are spent towards developing. For example the stealth technology in the F-22 and F-35 fighters which were developed with taxpayer funding were stolen by china years ago. The news story is easy to find via search engine.


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April 14, 2018, 05:39:44 AM
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OP,this is old news.It`s not a secret that China is stealing and copying patented technologies from the USA and EU countries during the past 25 years.Even all the foreign investors,who have factories in China complain that their chinese workers steal the know-how and technologies and copy them into other factories,owned by the Chinese government.There`s no way that the US counterintelligence could stop this theft.It will cost billions of dollars and the US federal budget ahs a huge deficit.

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April 15, 2018, 11:13:30 PM
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OP,this is old news.It`s not a secret that China is stealing and copying patented technologies from the USA and EU countries during the past 25 years.Even all the foreign investors,who have factories in China complain that their chinese workers steal the know-how and technologies and copy them into other factories,owned by the Chinese government.There`s no way that the US counterintelligence could stop this theft.It will cost billions of dollars and the US federal budget ahs a huge deficit.

I think politicians in the USA and europe sell out their own people and help china steal technology and other vital information. Hillary Clinton's email server she deleted 30,000+ emails from could have been full of classified information she secretly sold to china and other countries for profit. You're right it is nothing new. There isn't much discussion on these types of topics however which could make it a neglected point worth mentioning.

As said, this could be a unifying point for the USA and other nations of the world to hike tariffs against china and force china to adopt fairer trade policy worldwide. This is basically just another angle (which isn't being mentioned much) to the USA / china trade dispute. That's where its relevence might factor in.

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April 15, 2018, 11:24:52 PM
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This is intriguing and should emerge as a relevent point during the USA versus china "trade war". I think that japan and other european nations have similar complaints towards china, which could unify them and serve as a motive to crackdown on china for these types of practices. If you've noticed the tendency china has to pirate video game consoles, hand held devices, electronics, CD's, DVD's or anything else. That technology pirated by china represents billions if not trillions of dollars of lost revenue globally. On top of that china has been known to steal defense technology, patented and copyrighted intellectual property and many different types of things which the united states, japan and other nations have spent large sums of money to develop.

It will be interesting to see how things progress. I think that perhaps americans and others should be mad that china steals many of the things their taxpayer dollars are spent towards developing. For example the stealth technology in the F-22 and F-35 fighters which were developed with taxpayer funding were stolen by china years ago. The news story is easy to find via search engine.
We don't need another war. At least not now. There's a major chance of world War 3,now that US, UK and France had successfully launched over hundred missiles over Syria.
Anyhow, China has been known for plagiarizing almost everything, they make something out of something. You can almost never stop China for doing what they are doing, after all the whole world does after their products, just because they are cheap.


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April 15, 2018, 11:25:09 PM
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As you can see, many Chinese mobile phone manufacturers have a hard time entering the U.S. market.

Because Chinese phone manufacturers are copying apple's designs, many designs infringe on apple's patents.

And the iphone is very popular in China!

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April 17, 2018, 05:39:36 AM
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China has a government-directed, multi-faceted secret program whose primary task is technology acquisition, as well as a highly refined strategy to develop and exploit access to advantageous information through technology.
Along with Russian intelligence agents, Chinese technology spies have developed specific lists of technology for theft. Beijing uses clandestine agents, front companies, and joint research ventures in the theft program

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April 17, 2018, 10:27:00 AM
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OP,this is old news.It`s not a secret that China is stealing and copying patented technologies from the USA and EU countries during the past 25 years.Even all the foreign investors,who have factories in China complain that their chinese workers steal the know-how and technologies and copy them into other factories,owned by the Chinese government.There`s no way that the US counterintelligence could stop this theft.It will cost billions of dollars and the US federal budget ahs a huge deficit.
It is the way of all great nations. They do not focus on improving their own technology rather always try to get information about what other countries are doing. That is why it is impossible to have peace in this world. Governments focus on defeating others not on winning the game. It might sound one or the same thing but a person with deep sight will get the point. Russia, America, UK, china, France all are just war lovers.

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April 17, 2018, 10:55:27 AM
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Since the beginning of time, countries have been spying on each other yet they would stand on podiums and sign treaties, set up committees, smile for the camera yet the downfall of the other country is their primary objective which they continue to pursue rigorously. The most important annoying thing is that the moment one spy is caught or defect, the home country is quick to disown, agent commit suicide or even go on an assassination spree in other to keep him or her silent. This is not even a new thing. Its even safe to say that no country is even inventing anything what they do is to copy from several other countries to make theirs stronger and all of them are guilty of this.

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April 17, 2018, 09:27:43 PM
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Does anyone find it strange how the european union and united states turn a blind eye to issues like spies stealing technology? They collectively spend trillions of dollars/euros on "anti-terrorism" measures, under which theft of technology and intellectual property could be categorized. They build intricate and comprehensive surveillance networks, in theory, to prevent things like this. Then when we have overwhelming evidence that things like this happen, its completely ignored by governments and the media with people saying: "its impossible to prevent things like this, so we shouldn't even try" even though trillions in fiat money, privacy and freedom were sacrificed supposedly so governments could combat these types of things which reduce standard of living and economic prosperity.

Its almost like governments and the media collectively support china's theft of technology/intellectual property/patent and copyright protected things and try to bury the issue.

There's a lot of evidence technology theft occurs. And no evidence that terrorists use crypto currencies to launder money. Does anyone find it strange how the "we have to regulate bitcoin to prevent money laundering" issue is pushed so much harder than legitimate issues like china stealing trillions of dollars worth of technology?

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July 23, 2018, 10:26:32 PM
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Since the beginning of time, countries have been spying on each other yet they would stand on podiums and sign treaties, set up committees, smile for the camera yet the downfall of the other country is their primary objective which they continue to pursue rigorously. The most important annoying thing is that the moment one spy is caught or defect, the home country is quick to disown, agent commit suicide or even go on an assassination spree in other to keep him or her silent. This is not even a new thing. Its even safe to say that no country is even inventing anything what they do is to copy from several other countries to make theirs stronger and all of them are guilty of this.
Capital raising is a sensitive topic. I think with the capital gains tax increase does not arise until after the stock is sold. If a share is held (HODL'ed) longer than one year, a lower tax percentage is paid than the stock to be bought and sold within 12 months. Uncertainty about whether bitcoin coins or electronic money need to be exchanged for fiat to be taxed in the same way. It's a gray area for me and one I would be interested in seeing someone know more about.

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July 23, 2018, 11:48:47 PM
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The United States itself recruits the best talents in the world and digs the technology of other countries through espionage!
There are espionages in any country! Just American technology is being stolen by spies and other countries!
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August 07, 2018, 09:34:43 AM
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OP,this is old news.It`s not a secret that China is stealing and copying patented technologies from the USA and EU countries during the past 25 years.Even all the foreign investors,who have factories in China complain that their chinese workers steal the know-how and technologies and copy them into other factories,owned by the Chinese government.There`s no way that the US counterintelligence could stop this theft.It will cost billions of dollars and the US federal budget ahs a huge deficit.
I have read this news for some time. Now just to review and make this site happen, not okay. Simply plagiarizing and copying are problematic, and violate national law. Why are there such unkind actions? There should be solutions for investors to understand, to avoid panic in the market. Again, it affects the whole economy, and I do not accept their actions.

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