Congressional ‘China Threat Snapshot’ Report Reveals Surge in CCP Espionage

Congressional ‘China Threat Snapshot’ Report Reveals Surge in CCP Espionage
FBI Director Christopher Wray testifies before the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party on Capitol Hill on Jan. 31, 2024. Kevin Dietsch/Getty Images
Antonio Graceffo
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Commentary

Chinese espionage within the United States—spanning the government, military, and economic sectors—has surged, involving both Chinese nationals and non-Chinese individuals working on behalf of the People’s Republic of China (PRC).

The House Committee on Homeland Security (CHS) has released a new “China Threat Snapshot” report detailing recent cases of espionage and transnational repression tied to the Chinese Communist Party (CCP) within the United States.

The report consolidates numerous investigations and findings from congressional committees, intelligence and defense agencies, private organizations such as Freedom House, and the Department of Homeland Security over the past year, exposing the CCP’s nefarious activities on U.S. soil. These incidents span academia, state governments, military bases, research facilities, civil action groups, private companies, and even residential communities. The extensive activities detailed in these reports—combined with the growing number of incidents—highlight the escalating threat the CCP poses.

One of the reports included in the “China Threat Snapshot” was from September by CHS and the Select Committee on the CCP. It highlighted the growing risks to U.S. economic and homeland security from CCP activities, uncovering multiple threats and vulnerabilities, particularly in the maritime sector.
The report revealed Beijing’s unprecedented control over the maritime industry, with two Chinese state-owned enterprises controlling certain operations in five U.S. ports and implementing the use of PRC-produced technology, including ship-to-shore cranes, raising concerns about espionage and surveillance.
ZPMC, a major crane equipment manufacturer with direct ties to the CCP and the People’s Liberation Army and known for its involvement in militarizing the South China Sea, is posing a cybersecurity risk by installing unauthorized cellular modems on cranes at U.S. ports and seeking remote access, potentially compromising sensitive operations.

Even alternative crane suppliers have vulnerabilities, as many rely on PRC-made components or have significant business ties to China. The Indo-Pacific region also faces risks in a potential U.S.–China conflict, with the Chinese regime able to manipulate the supply of critical maritime components, disrupting U.S. commercial and military operations, particularly regarding Taiwan.

The report includes links to a Jan. 17 congressional hearing in which the Subcommittee on Counterterrorism, Law Enforcement, and Intelligence heard testimony on the growing threat of transnational repression. American citizens and dissidents shared their experiences of being directly affected by Beijing’s actions. The testimony was supported by a Freedom House report documenting 854 incidents of such repression—such as assassination, kidnapping, assault, detention, and deportation—carried out by 38 governments in 91 countries between 2014 and 2022.

More than 30 percent of these cases involved the CCP, which Freedom House has identified as leading “the most comprehensive and sophisticated campaign of transnational repression in the world.” A recent example took place in November 2023, when peaceful demonstrators protesting human rights abuses by the CCP and Chinese leader Xi Jinping were physically assaulted during the Asia-Pacific Economic Cooperation Summit in San Francisco.

Freedom House reported that the CCP has effectively legalized overseas espionage for all Chinese citizens under its 2017 National Intelligence Law. Article 7 mandates that all Chinese individuals, organizations, and institutions, including those abroad, must assist in national intelligence efforts, while Article 14 gives Chinese intelligence agencies the authority to demand such cooperation.

This law extends to U.S. companies operating in China, which are required to store personal data locally. The law’s effect is seen in the crackdown on dissidents in Hong Kong under its National Security Law, with American and British citizens even placed on the CCP’s most wanted list.

The law compels Chinese students, visiting scholars, businesspeople, and tourists abroad to engage in espionage, sometimes unknowingly or unwillingly. Numerous cases from American universities reveal Chinese students and their families in China being harassed or arrested for attending events critical of the CCP, such as commemorations of the Tiananmen Square massacre or support for persecuted Tibetans, Uyghurs, or Christians. Often, these students are reported to Chinese authorities by fellow Chinese students acting as informants.

Further testimony revealed that the CCP directs its transnational repression efforts through agents and pro-CCP organizations. Chinese embassies and consulates directly fund groups like the Chinese Students and Scholars Association, which has more than 150 branches across the United States, and the All-China Federation of Returned Overseas Chinese, along with numerous regional and social organizations. Additionally, the CCP backs both physical and cyber harassment campaigns targeting dissidents in the United States and other Western nations.

In response to the escalating CCP espionage, Congress has taken action. On Sept. 25, the CHS advanced two bipartisan bills: H.R. 9668, the SHIELD Against CCP Act, and H.R. 9769, the Strengthening Cyber Resilience Against State-Sponsored Threats Act.

Additionally, the Decoupling from Foreign Adversarial Battery Dependency Act, passed by the House of Representatives, targets supply-chain vulnerabilities. This legislation prohibits the Department of Homeland Security (DHS) from purchasing batteries from any of six Chinese state-owned or operated companies, as well as entities listed by the departments of Homeland Security, defense, and commerce as “Chinese military companies.” The Department of Defense has already begun phasing out these batteries, and DHS is now required to do the same.
While the legislation is a significant step in countering the CCP, the threat remains, and U.S. lawmakers are seeking answers. In October, 13 legislators sent a letter to Attorney General Merrick Garland, FBI Director Christopher Wray, and Secretary of State Antony Blinken, warning of “systemic influence operations from our principal geopolitical adversary”—communist China. They voiced concern that the U.S. government’s response has been inadequate.
Polaris National Security, a think tank specializing in American foreign policy, pointed out that the Biden–Harris administration’s China strategy focuses more on avoiding conflict than confronting the CCP. The think tank argued that a more assertive, comprehensive approach, including decoupling from China, is essential to ensure America’s safety.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
Antonio Graceffo
Antonio Graceffo
Author
Antonio Graceffo, Ph.D., is a China economic analyst who has spent more than 20 years in Asia. Graceffo is a graduate of the Shanghai University of Sport, holds a China-MBA from Shanghai Jiaotong University, and currently studies national defense at American Military University. He is the author of “Beyond the Belt and Road: China’s Global Economic Expansion” (2019).