When asked after his speech whether the regime was targeting U.S. labs for research into the virus, Demers replied: “It’s certainly the logical conclusion of everything I’ve said,” referring to his comments on the regime’s sweeping efforts to steal U.S. trade secrets and technology across an array of industries.
“There is nothing more valuable today than biomedical research relating to vaccines or treatments for coronavirus,” Demers said.
He added that it would be “beyond absurd” to think that China wouldn’t attempt to obtain “biomedical research relating to vaccines or treatment for coronavirus,” since the medical information would be of “great importance, not just from a commercial value.”
Warning
Demers said that U.S. authorities are monitoring the hacking activity.“We are very attuned to increased cyber intrusions into medical centers, research centers, universities—anybody that is doing research in this area.”
“We certainly have seen reconnaissance activity, and some intrusions, into some of those institutions, especially those that have publicly identified themselves as working on COVID-related research,” said Ugoretz.
Ugoretz added that while research institutes wanted to make public their ongoing research efforts, they also became “a mark for other nations” who may want to steal “proprietary information that those institutions have.”
Bill Evanina, director of the National Counterintelligence and Security Center, also alerted research labs to the potential threat.
China’s Theft
Demers also pointed to the growing number of trade secret and economic espionage cases involving China—usually utilizing company insiders to steal intellectual property.The Chinese regime’s intelligence services have been recruiting company insiders, according to Demers. First, China identifies a specific technology that it would want to possess—either based on open-source information or other data it has already stolen. Then, it targets certain employees within companies that develop the technology, according to Demers.
Demers explained that once Beijing finds a target—be it a government official or company employee—it would develop a relationship with the person, such as meeting his financial needs, or using coercion to get what it needs.
Aside from stealing technology, China also engages in cyber theft of massive amounts of data.
“All personal data is very useful to develop artificial intelligence tools and one of the areas in—which they [China] are definitely trying to compete very strongly with U.S. companies, European companies—is the development of artificial intelligence. You need big data to own your algorithms,” Demers said.
He also explained that service providers such as financial services companies and health insurance companies should be aware that their customers’ data “might be of interest to [foreign] intelligence services.” He pointed to the example of U.S. credit company Equifax.
The U.S. Justice Department indicted the employee in November 2019 on several charges, including one count of conspiracy to commit economic espionage and three counts of economic espionage.