FBI Director Christopher Wray outlines the threat China poses to U.S. economic and national security. He delivered the review during a meeting with the Hudson Institute in Washington, D.C.
Clandestine Efforts
As National Security Advisor O’Brien discussed in his June remarks, the Chinese government is also making liberal use of hacking to steal our corporate and personal data—and they’re using both military and non-state hackers to do it. The Equifax intrusion I mentioned just a few moments ago, which led to the indictment of Chinese military personnel, was hardly the only time China stole the sensitive personal information of huge numbers of the American public.
For example, did any of you have health insurance through Anthem or one of its associated insurers? In 2015, China’s hackers stole the personal data of 80 million of that company’s current and former customers.
Or maybe you’re a federal employee—or you used to be one, or you applied for a government job once, or a family member or roommate did. Well, in 2014, China’s hackers stole more than 21 million records from OPM, the federal government’s Office of Personnel Management.
Why are they doing this? First, China has made becoming an artificial intelligence world leader a priority, and these kinds of thefts feed right into China’s development of artificial intelligence tools.
Compounding the threat, the data China stole is of obvious value as they attempt to identify people for secret intelligence gathering. On that front, China is using social media platforms—the same ones Americans use to stay connected or find jobs—to identify people with access to our government’s sensitive information and then target those people to try to steal it.
Just to pick one example, a Chinese intelligence officer posing as a headhunter on a popular social media platform recently offered an American citizen a sizeable sum of money in exchange for so-called “consulting” services. That sounds benign enough until you realize those “consulting” services were related to sensitive information the American target had access to as a U.S. military intelligence specialist.
Now that particular tale has a happy ending: The American citizen did the right thing and reported the suspicious contact, and the FBI, working together with our armed forces, took it from there. I wish I could say that all such incidents ended that way.
Threats to Academia
It’s a troublingly similar story in academia.
Through talent recruitment programs like the Thousand Talents Program I mentioned just a few moments ago, China pays scientists at American universities to secretly bring our knowledge and innovation back to China—including valuable, federally funded research. To put it bluntly, this means American taxpayers are effectively footing the bill for China’s own technological development. China then leverages its ill-gotten gains to undercut U.S. research institutions and companies, blunting our nation’s advancement and costing American jobs. And we are seeing more and more of these cases.
In May alone, we arrested both Qing Wang, a former researcher with the Cleveland Clinic who worked on molecular medicine and the genetics of cardiovascular disease, and Simon Saw-Teong Ang, a University of Arkansas scientist doing research for NASA. Both of these guys were allegedly committing fraud by concealing their participation in Chinese talent recruitment programs while accepting millions of dollars in American federal grant funding.
That same month, former Emory University professor Xiao-Jiang Li pled guilty to filing a false tax return for failing to report the income he’d received through China’s Thousand Talents Program. Our investigation found that while Li was researching Huntington’s disease at Emory, he was also pocketing half a million unreported dollars from China.
In a similar vein, Charles Lieber, chair of Harvard’s Department of Chemistry and Chemical Biology, was indicted just last month for making false statements to federal authorities about his Thousand Talents participation. The United States has alleged that Lieber concealed from both Harvard and the NIH his position as a strategic scientist at a Chinese university—and the fact that the Chinese government was paying him, through the Wuhan Institute of Technology, a $50,000 monthly stipend, more than $150,000 in living expenses, and more than $1.5 million to establish a laboratory back in China.
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There’s more. Another tool China and the Chinese Communist Party use to manipulate Americans is what we call malign foreign influence.
Now, traditional foreign influence is a normal, legal diplomatic activity typically conducted through diplomatic channels. But malign foreign influence efforts are subversive, undeclared, criminal, or coercive attempts to sway our government’s policies, distort our country’s public discourse, and undermine confidence in our democratic processes and values.
China is engaged in a highly sophisticated malign foreign influence campaign, and its methods include bribery, blackmail, and covert deals. Chinese diplomats also use both open, naked economic pressure and seemingly independent middlemen to push China’s preferences on American officials.
Just take one all-too-common illustration: Let’s say China gets wind that some American official is planning to travel to Taiwan—think a governor, a state senator, a member of Congress. China does not want that to happen, because that travel might appear to legitimize Taiwanese independence from China—and legitimizing Taiwan would, of course, be contrary to China’s “One China” policy.
So what does China do? Well, China has leverage over the American official’s constituents—American companies, academics, and members of the media all have legitimate and understandable reasons to want access to Chinese partners and markets. And because of the authoritarian nature of the Chinese Communist Party, China has immense power over those same partners and markets. So, China will sometimes start by trying to influence the American official overtly and directly. China might openly warn that if the American official goes ahead and takes that trip to Taiwan, China will take it out on a company from that official’s home state by withholding the company’s license to manufacture in China. That could be economically ruinous for the company, would directly pressure the American official to alter his travel plans, and the official would know that China was trying to influence him.
That would be bad enough. But the Chinese Communist Party often doesn’t stop there; it can’t stop there if it wants to stay in power—so it uses its leverage even more perniciously. If China’s more direct, overt influence campaign doesn’t do the trick, they sometimes turn to indirect, covert, deceptive influence efforts.
To continue with the illustration of the American official with travel plans that the Chinese Communist Party doesn’t like, China will work relentlessly to identify the people closest to that official—the people that official trusts most. China will then work to influence those people to act on China’s behalf as middlemen to influence the official. The co-opted middlemen may then whisper in the official’s ear and try to sway the official’s travel plans or public positions on Chinese policy. These intermediaries, of course, aren’t telling the American official that they’re Chinese Communist Party pawns—and worse still, some of these intermediaries may not even realize they’re being used as pawns, because they, too, have been deceived.
Ultimately, China doesn’t hesitate to use smoke, mirrors, and misdirection to influence Americans.
Similarly, China often pushes academics and journalists to self-censor if they want to travel into China. And we’ve seen the Chinese Communist Party pressure American media and sporting giants to ignore or suppress criticism of China’s ambitions regarding Hong Kong or Taiwan. This kind of thing is happening over and over, across the United States.
And I will note that the pandemic has unfortunately not stopped any of this—in fact, we have heard from federal, state, and even local officials that Chinese diplomats are aggressively urging support for China’s handling of the COVID-19 crisis. Yes, this is happening at both the federal and state levels. Not that long ago, we had a state senator who was recently even asked to introduce a resolution supporting China’s response to the pandemic.
The punchline is this: All of these seemingly inconsequential pressures add up to a policymaking environment in which Americans find themselves held over a barrel by the Chinese Communist Party.
The Report Concludes Tomorrow.
Photo: Chinese Fighter Jets (China Defence Ministry photo)