China’s systematic and orchestrated campaign of theft of intellectual property and technological advances poses an unprecedented threat to U.S. national security and requires a comprehensive and urgent response. The United States, once unchallenged in its technological prowess, now faces threats emanating from the Chinese Communist Party’s (CCP) agenda that are both insidious and far-reaching in terms of the threats to our national security.
As the world enters an era defined by new forms of power, emerging technologies such as artificial intelligence (AI), quantum computing and hypersonic weapons are at the forefront of the US-China competition. The National Security Commission on Artificial Intelligence warned as early as 2021 that “China possesses the power, talent, and ambition to surpass the United States as the global leader in AI in the next decade,” underscoring the urgency of this technological race.
This danger arises not only from China’s relentless pursuit of American knowledge and data – as evidenced by high-profile cases such as the indictment of Chinese nationals for cyber espionage against US companies – but also from the uncomfortable reality that America has largely enabled this IP theft through investments and inadequate controls. The consequences of such actions cannot be overstated; they resonate in every facet of national security and economic competitiveness.
While the US has been embroiled in protracted conflict in the Middle East, the CCP has pursued a “whole of society” approach to national rejuvenation. The 2017 National Intelligence Law requires all Chinese organizations and citizens to support, assist and cooperate with state intelligence work, raising concerns about the security of joint ventures and technology transfers.
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Freshmen participate in military training at Southeast University in Nanjing, Jiangsu Province, China on October 22, 2021. (Yang Bo/China News Service via Getty Images)
China’s economic and military rise since joining the World Trade Organization in late 2001 is arguably unprecedented in history, in terms of speed, scale and material gains. That membership was intended to include China in the international economic order. China has abused its WTO membership for its own interests, to the detriment of the global international order.
When Xi Jinping took control of the CCP in 2012, the comprehensive plan to steal America’s commercial “crown jewels” accelerated. The Ministry of State Security (MSS) – China’s version of the FBI, CIA, NSA and Cyber Command rolled into one – has doubled in size over the past decade. Just as planned by the CCP High Command and enabled by the MSS, China would transform from an economic hinterland to the economic superpower it is today.
For the PRC/CCP, every facet of American innovation is a target. From advanced aerospace engineering to breakthroughs in biotechnology, the scope of espionage is staggering. Intellectual property theft not only undermines American businesses, but also erodes the foundations of our future military and economic strength.
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In many ways, this has been a one-sided economic war that China has waged against the US and the West in general. If the US fails to recognize and address the magnitude of this threat, it risks losing its leadership position in the technologies that will shape the next century.
Beijing has played on the naivety of leaders in Washington and Brussels by judo-like weaponizing their strengths – a liberal and globalized economic order – to its own advantage. While direct confrontation is not inevitable in a military sense, this commercial war, fought largely in unconventional ways, will determine the outcome of any future military confrontation between the United States and China.
The challenge for the US in dealing with this threat is that its traditionally structured intelligence, security and judicial apparatuses are largely ill-suited to combat this unique and modern threat.
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The CIA and FBI were largely designed to gain access to government-held secrets or to thwart an official Chinese or Russian intelligence officer who was trying to recruit a government official. How do U.S. intelligence and security services approach a partially owned Chinese company that uses its commercial access to steal proprietary secrets? What will it take for US federal prosecutors to charge and convict those who engage in commercial espionage?
America is at a crossroads. The traditional playbook – rooted in Cold War paradigms and focused on conventional espionage – is no longer sufficient in the face of this asymmetric economic warfare. The United States must modernize its strategies and not only improve intelligence capabilities but also forge stronger alliances with innovative companies and academic institutions. Defensive action must now extend beyond government agencies and into the heart of America’s entrepreneurial and academic fabric.
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David R. Shedd’s new book, “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” warns America against theft of Chinese intellectual property.
The United States must strengthen its defenses against intellectual property theft, as recommended by the Justice Department’s China Initiative, which has led to dozens of prosecutions for trade secret theft and economic espionage. In addition, the National Science Foundation has called for increased investment in research and development and the establishment of secure research environments to protect sensitive innovations.
U.S. legal and regulatory frameworks are also lacking or inadequately enforced, often making prosecution of trade theft cases difficult, even when the evidence is overwhelming. As for the U.S. private sector, Secretary of State Marco Rubio succinctly summed up the issue when he argued that U.S. companies are essentially committing “corporate suicide” by not fully considering the long-term consequences of fueling Chinese economic superiority.
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What is needed is a renewed sense of urgency, along with a counter-attack in society-wide response to China’s relentless economic predatory actions. The United States must defend its intellectual capital with the same tenacity it applies to its physical security. An integrated approach – combining updated legislation, robust law enforcement, international cooperation and a renewed commitment to research leadership – offers the best path forward.
Finally, economic security within the government must be increased to receive the same priority as traditional national security, going back to the Cold War era when we faced the Soviet Union as the main adversary in the world. Only then can America hope to secure its place at the top of the global technological hierarchy and protect its national security against a PRC/CCP that seeks to undermine American strength through subterfuge and theft.


