The Federal Bureau of Investigation (FBI) is opening a new China-related counterintelligence case about once every 10 hours as it pushes back against Beijing’s expansive campaign to steal American intellectual property (IP) and influence policymakers, FBI director Christopher Wray said in a speech on July 7.
Wray warned that Beijing’s counterintelligence and economic espionage operations are the “greatest long-term threat” to the United States’ economic and national security.
Its stealing of U.S. technology and trade secrets is on a scale “so massive that it represents one of the largest transfers of wealth in human history,” he said in a speech given at the Washington-based think tank Hudson Institute.
His remarks come as the Trump administration ramps up its actions and rhetoric against the Chinese regime in a range of issues from its coverup of the CCP virus outbreak to its tightening grip on Hong Kong to national security risks posed by Chinese telecom companies.
In one of the most detailed speeches by a U.S. official on the threats posed by the Chinese Communist Party (CCP), the FBI director detailed the regime’s “broad, diverse campaign” to steal American IP and exert undue influence over U.S. officials at all levels of government.
“China is engaged in a whole-of state-effort to become the world’s only superpower by any means necessary,” Wray said.
Expansive Campaign
The campaign employs a wide range of techniques—from cyber hacking to acquisitions of foreign companies to physical theft—and involves a full breadth of actors, spanning intelligence services, private firms, graduate students, and researchers, the FBI director said. The targeted U.S. companies range from Fortune 100 companies to startups, in a variety of industries from aviation to agriculture.U.S. pharmaceutical companies and research institutes have especially been targeted during the pandemic, Wray noted. He said “it’s not unusual” for the FBI to see cyber intrusions tracing back to China after a company or research body makes an announcement about promising COVID-19 research—“sometimes almost the next day.”
Wray said that almost half of the FBI’s nearly 5,000 counterintelligence investigations across the country are connected to China, adding that in the past decade, there has been roughly a 1,300 percent increase in economic espionage cases linked to the regime.
In recent months, federal authorities have cracked down on academics who have allegedly hidden their links to Chinese state-backed recruitment programs, such as the Thousand Talents Plan—a policy that Wray said facilitates the transfer of sensitive American technology and know-how to China.
Malign Influence
Wray said the CCP is also engaged in a “highly sophisticated” campaign to influence U.S. officials at each level of government, persuading them to take policy positions in line with those of the regime, such as on Taiwan, Hong Kong, and Beijing’s handling of the pandemic.Its methods, he noted, include Chinese diplomats applying direct pressure, such as economic threats, as well as indirect and covert means, including blackmail and using middlemen to convince targets.
The director warned that when direct influence efforts don’t work, the regime will then try to co-opt people close to the official, such as a political donor or business person, to exert pressure on the targeted policymaker.
“China will work relentlessly to identify the people closest to that official—the people that official trusts most,” Wray said.
“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,” he added. “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.”