Presumably, the information China now regards as state secrets is related to its competitive advantages or its military, but the lack of definition means foreign companies operating in China have no clear idea of where the boundaries between data that is sensitive and that which isn’t a lie. Last month the Chinese legislature revised its Counterespionage Law, originally enacted in 2014, to restrict the transfer of information related to national security and state interests and expanded the definition of espionage to include any material related to national security and state interests – without defining what they might mean. It’s difficult to see how Western companies could invest in China while exposing themselves to open-ended risk by investing essentially blind in an environment where there is no clarity about what’s sensitive information and what’s not. The focus this year appears to be on the transfer of information from inside China to foreign companies and governments.Īpart from the raids on foreign consultancies, China’s data providers had already been ordered to stop providing foreigners access to detailed information on Chinese companies and China’s economy. 1996 declassified CIA report listed countries that were extensively engaged in economic espionage against the U.S., including France, Israel, China, Russia. Some US allies abuse the access they have been granted to try to clandestinely collect critical information that they can use for their own economic or political advantage.After initially targeting excessive leverage in its property, and causing a massive implosion in that sector, last year the authorities cracked down on China’s technology sector and wiped more than $US1 trillion ($1.5 trillion) from its value. China and Russia are our most aggressive and capable adversaries using economic espionage.Ĭhina and Russia are not the only perpetrators of espionage against sensitive US economic information and technology. Economic espionage refers to targeting or acquiring trade secrets from domestic companies or government entities to knowingly benefit a foreign state. The requirement to move quickly and unabashedly leaves American companies vulnerable as they flock into spy-rich developing nations. American companies are driven into developing markets by shareholders, growth ambitions, and the desire to beat Wall Street's quarterly earnings expectations. The second CI challenge is tied to the nature of public corporations. CI measures absorb company resources that would otherwise be used for growth. This is in large part because counterintelligence is not a typical corporate function, even for well-trained and well–staffed security professionals.Ĭounterintelligence is a challenge for corporations for two reasons. The private sector alone lacks the resources and expertise to thwart foreign efforts to steal critical American know-how. Without corrective action that mobilizes the expertise of both the Federal Government and the private sector, the technologies cultivated by American minds and within American universities are at risk of becoming the plunder of competing nations at the expense of long-term U.S. Espionage against the private sector increases the danger to long-term U.S. Their efforts compromise intellectual property, trade secrets, and technological developments that are critical to national security. These adversaries use traditional intelligence tradecraft against vulnerable American companies, and they increasingly view the cyber environment-where nearly all important business and technology information now resides-as a fast, efficient, and safe way to penetrate the foundations of our economy. Federal Bureau of Investigation had been clear as early as 2015 that it views the Thousand Talents Program as a part of Beijing’s broader economic espionage agenda, describing it as an. Today, foreign intelligence services, criminals, and private sector spies are focused on American industry and the private sector. Nazi spies during World War II tried to penetrate the secrets behind our aviation technology, just as Soviet spies in the Cold War targeted our nuclear and other military secrets. They frequently avoid using standing armies, shirk traditional spy circles, and go after the heart of what drives American prosperity and fuels American might. Principles of Artificial Intelligence Ethics for the ICĪmerica's adversaries throughout history have routinely taken their competitive efforts beyond the battlefield. Economic espionage and theft of trade secrets represent the largest growth area among the traditional espionage cases overseen by CD’s Counterespionage Section.
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