China’s Intellectual Property Theft, Cyber Espionage, and Infiltration in the U.S

Earlier this month, the FBI and CISA issued a joint statement detailing a significant cyber espionage campaign by actors affiliated with the People’s Republic of China (PRC).

The investigation revealed that PRC-linked operatives compromised networks at multiple telecommunications companies, enabling the theft of customer call data, breaches of private communications—primarily of individuals involved in government or political activities—and the unauthorized copying of sensitive information subject to U.S. law enforcement requests.

The U.S. House Committee on Homeland Security released a detailed assessment on October 17, highlighting significant national security threats posed by the Chinese Communist Party (CCP), including espionage and acts of transnational repression.

Titled the “China Threat Snapshot,” the report documents recent legislative efforts to counter these threats and provides alarming statistics on CCP-related activities in the United States.

According to the report, there have been over 55 documented cases of CCP espionage across 20 states between February 2021 and August 2024.

These cases involve trade secret theft, obstruction of justice, transnational repression schemes, and the transmission of sensitive military information.

The FBI estimates that 80% of economic espionage prosecutions are linked to activities benefiting China, and about 60% of trade-secret theft cases have ties to the CCP.

FBI Director Christopher Wray testified that the agency opens a new case targeting CCP intelligence operations every 12 hours.

Committee Chairman Mark Green emphasized that the threat lies not with the Chinese people but with the CCP’s authoritarian regime, which spies on defectors, intimidates American citizens, censors dissent, and undermines democratic governance.

The report underscores the urgent need for robust measures to protect U.S. sovereignty and counter the CCP’s escalating aggression.

In the week of September 9, 2024, House Republicans are focusing on several key issues, particularly targeting Chinese espionage, the protection of U.S. intellectual property, and national security.

The Chinese Communist Party has long been involved in stealing U.S. intellectual property, resulting in losses of up to $500 billion annually for American taxpayers.

As the vast majority of economic espionage cases involve China, and House Republicans are taking steps to counter this by introducing the Protect America’s Innovation and Economic Security from CCP Act.

This legislation reinstates and renames the “China Initiative” as the CCP Initiative, aiming to combat espionage and protect U.S. trade secrets and academic institutions.

House Republicans are also focused on protecting U.S. institutions from Chinese influence. The Chinese government has used Confucius Institutes to infiltrate American universities and spread propaganda.

Although many of these institutes have closed, some schools still maintain ties with Chinese entities.

The DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act aims to restrict funding to institutions that maintain relationships with Chinese entities, thereby safeguarding academic integrity.

Additionally, Republicans are addressing concerns over Chinese dominance in the electric vehicle (EV) market. The current lenient rules allow Chinese entities to benefit from U.S. tax credits for EVs.

To counter this, the End Chinese Dominance of Electric Vehicles in America Act seeks to close loopholes that allow Chinese manufacturers to exploit U.S. subsidies, ensuring that American tax dollars are not supporting foreign adversaries.

Another pressing issue is the growing foreign ownership of U.S. farmland, particularly by Chinese companies. Over the past decade, Chinese ownership of American farmland has increased significantly, raising concerns about food and national security.

The Protecting American Agriculture from Foreign Adversaries Act proposes adding agricultural transactions to the Committee on Foreign Investment in the United States (CFIUS) review process, ensuring that foreign adversaries cannot acquire land near military installations or threaten the U.S. food supply.

These initiatives reflect the Republican commitment to safeguarding U.S. intellectual property, and national sovereignty, while ensuring responsible use of taxpayer funds and bolstering national security.

They align with President Trump’s hawkish cabinet picks, signaling a tough stance on China. Former U.S. Trade Representative Robert Lighthizer, the architect of the U.S.-China trade war, is poised to lead trade policy with a continued focus on countering China’s economic practices.

Sen. Marco Rubio, nominated for Secretary of State, has been a vocal critic of the CCP, co-authoring legislation to revoke China’s PNTR status.

National Security Advisor pick Michael Pillsbury, another staunch China hawk, has championed strategic decoupling and increased pressure on Beijing.

Together, these appointments underscore Trump’s intent to confront China aggressively on trade, security, and human rights.

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