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http://freebeacon.com/national-security/party-directive-reveals-increased-chinese-theft-u-s-technology/
Party Directive Reveals Increased Chinese Theft of U.S. Technology
China's Communist Party recently authorized an aggressive program of
stealing U.S. science and technology information by recruiting Americans in
the tech sector with access to trade secrets, according to an internal Party
directive.
The directive outlines a secret program authorized by the general office of
the Communist Party of China (CCP) Central Committee of stepped up
technology collection beginning in late 2016 and carried out by an
intelligence unit called the United Front Work Department.
The document is an approval order from the Central Committee for a "working
plan on strengthening the intensity of United Front Work in the area of
science and technology of the United States in 2017."
"The united front work targeted on the areas of science and technology of
the United States is an important measure of our party to deeply divide
western hostile forces, to maintain social stability, to ensure national
security, to comprehensively advance the rapid development of our own
science and technology and economy, to accelerate the construction of
national defense modernization, and to consolidate the overseas united front
," the document states.
United front work is a communist euphemism for strategic alliances among
groups and affiliates that dates to the Soviet Union under Lenin.
Chinese supreme leader Xi Jinping greatly increased the use of united front
work as a key tool in China's global influence operations.
Xi stated in a September 2014 speech that united front work is among the
Party's "magic weapons" in low-level global warfare against enemies,
including the United States.
A copy of the three-page Party report was obtained by the Washington Free
Beacon from a person with ties to the Chinese intelligence and security
communities. An English translation can be found here.
The document is dated Dec. 13, 2016, and carries the red hammer and sickle
seal of the Party's general office, the administrative unit located within
the leadership compound in Beijing known as Zhongnanhai.
Copies were sent to the National People's Congress, State Council—two
Chinese government arms—and Central Military Commission, the Party organ
that controls the military.
The authenticity of the document could not be independently verified. A CIA
spokesman declined to comment. A Chinese Embassy spokesman did not return
emails seeking comment.
The classified document reveals that China's ruling Communist Party regards
the United States as a "hostile" power that is blocking China's development
by denying access to cutting edge American technology.
China's systematic theft of American technology is also being carried out
with the aim of subverting U.S. and western nations, according to the
document.
"This is proof China is aggressively subverting America and stealing
technology through espionage," said a person familiar with the plan.
FBI Director Christopher Wray said Chinese intelligence gathering is a major
threat facing the United States.
"In our experience, there is no nation that targets America's assets more
aggressively than the Chinese government," Wray told NBC News.
"And the Chinese government works hand in hand with Chinese companies, among
others, to do everything they can through all sorts of means to try and
steal our trade secrets, our economic assets," he added.
Targets of Chinese spying range from special corn seeds in Iowa to control
systems for wind turbines in Massachusetts, Wray said.
The threat posed by aggressive Chinese theft of trade and economic
information is having "a real impact" on American jobs, businesses, and
consumers, he said.
Disclosure of the internal Chinese report bolsters the findings of a March
22 report by the U.S. Trade Representative (USTR) office that warns China is
stealing massive amounts of American technology.
The USTR report states that China has adopted a plan for obtaining foreign
high technology between 2006 and 2020, and then "re-innovating" the know-how
for Chinese use.
Chinese companies are targeting and acquiring foreign technology using
technology transfers from foreign companies doing business in China and
through the collection of market intelligence by state entities that will
benefit Chinese companies.
The Trump administration released the USTR report in announcing plans to
impose between $50 billion and $60 billion in tariffs on Chinese products in
response to unfair trade practices.
China's illicit information and technology theft costs Americans $225
billion to $600 billion annually in lost information, the USTR report said.
The covert technology collection program is intended to bolster China's
large-scale conventional and nuclear military buildup and expand support for
pro-communist forces outside China.
The Communist Party report states that the United States remains the world's
technology leader and has blocked China from gaining access to advanced
American know-how.
"Though the United States has been the bellwether of high and new science
and technology of today's world, for a long time it has consistently
resisted and been hostile toward our country that has successfully practiced
the socialist system with Chinese characteristics out of consideration for
maintaining its own national interests and ideology," the report says.
"Even in today's fair competition in the world, [the U.S.] still stubbornly
imposes a blockage on high and new and core science and technology, control
over our recruitment of key talent, and an embargo of related equipment
against our country, having an extremely negative impact on our country in
the areas such as export trade and construction of military modernization,
etc."
The Central Committee's general office is the powerful organ in charge of
administrative affairs and drafts and circulates all directives for
activities.
"Your department must take the lead in further strengthening reasonable
investment of various resources, effectively join forces with diplomatic,
state security, and military intelligence agencies to deeply explore and
develop personal relationships and connections related to the areas of high
and new and core science and technology of the United States," the document
states.
The sectors targeted in the covert program include traditional defense and
military industry, nuclear energy and power, aerospace and aviation and
microelectronics, and biological and medical science.
However, the new plan also is targeting cutting edge technologies including
quantum computing and information science and technology.
"We should particularly target those key persons who have a relationship of
commercial interests with our country (including Hong Kong and Macau special
administrative regions) and overseas institutions of large corporations of
our country and directly participate the research and development in the
related areas of science and technology, or have special and close
relationships with them," the report said.
The United Front Work Department was urged to enthusiastically "carry out
the superb tradition of our Party of ‘concentrating our forces to deal with
the big thing,'"—a high priority for the regime.
The report calls for a targeted program of gathering intelligence on all
aspects of the lives of Americans engaged in high-technology work, including
"intimate friends" and family members as part of the technology acquisition
program.
"Through systematic, reasonable, effective, and careful checking and
investigation covering political, financial, cultural background, and life
hobbies, etc. aspects of the related key persons and their immediate family
members or intimate friends we shall make targeted, active and initiative
offensives of united front work to try our best to provide various preferred
measures such as preferred industrial, commercial, and financial policies,
special benefits, and huge funding support, etc. for their work, life, study
, and career development," the report says.
"And to try our best to gradually make them become the matured objects of
the united front work of our Party and to directly or indirectly serve and
work for our Party, government, and the socialist system with Chinese
characteristics."
The report urged the United Front Work Department to "sincerely and
carefully organize the implementation of the Request for Instructions
according to the spirit of this notice and reasonably and effectively
arrange the deployment of various related personnel and resources, and make
the implementation of this working plan an item to be evaluated in the
annual performance evaluation of your department. No agency or individual
shall make any change at will. Our office will regularly conduct supervision
and checking on the implementation of Request for Instruction."
One China expert said he was suspicious about the authenticity of the
document. But two other experts said the document appears genuine.
Peter Mattis, an expert on Chinese intelligence activities, said the
document appears to reflect known links between some United Front Work
Department organized social groups and technology transfers to China.
Anne Mare Brady, a Chinese affairs scholar with the Wilson Center in
Washington, says united front work is used by China to advance foreign
policy goals and as cover for intelligence activities. The operations have
increased under Xi, she said.
"China's united front approach has always used civil actors to promote
political ends," Brady stated in a recent report on China's influence
operations.
"[Chinese Community Party] united front officials and their agents are
tasked with developing relationships with foreign and overseas Chinese
personages to influence, subvert, and if necessary, bypass the policies of
their governments and promote the interests of the CCP globally," she added.
Disclosure of internal Chinese documents is rare but not unprecedented.
Secret Party reports were leaked to U.S. professors in 2000 outlining an
internal debate among Communist Party leaders over how to handle pro-
democracy protests in Beijing's Tiananmen Square in 1989. The regime
brutally suppressed the demonstrations, sending in tanks and armored
vehicles and killing hundreds and possibly thousands of unarmed Chinese
protesters.
Earlier this year, another high-level Party document revealed secret Chinese
government backing for the North Korean regime of Kim Jong Un.
The Justice Department has prosecuted more than a dozen cases of Chinese
illicit technology transfers in the past two years.
Recent cases of illegal Chinese high-technology acquisition have included
the case Xu Jiaqiang, a Chinese national who was sentenced to five years in
prison in January for stealing source code from a U.S. company that
developed software that speeds up computer processing.
A second case involved Fuyi Sun, a Chinese national sentenced to three years
in prison last fall for illegally trying to send high grade carbon fiber
used in stealth aircraft to China.
Other recent cases involved illegal attempts by China to obtain special
nuclear technology, hardened integrated circuits, proprietary data storage
software, and monolithic microwave integrated circuits (MMICs) used in
military systems. |