Chinese intelligence operations in the United States

People's Republic of China (PRC) has and is currently using a widespread effort to acquire U.S. military technology and classified information. To fulfill its long-term military development goals, the PRC uses a variety of methods to obtain U.S. technology; including espionage, the exploitation of commercial entities, and a network of scientific, academic, and business contacts. The Chinese operate in ways that take advantage of U.S. laws to avoid prosecution. The PRC uses a vast network of agents and contacts to collect pieces of information that are collated and put together in the PRC. Often each individual piece is not enough to warrant any suspicion or prosecution from U.S. government personnel. The aggressiveness of Chinese penetration is well documented in multiple espionage cases including those of Larry Wu-Tai Chin, Katrina Leung, Gwo-Bao Min, Chi Mak, and Peter Lee. In addition to traditional espionage, the PRC uses civilian companies to partner with American businesses in order to acquire advanced technology and economic data. Additionally, the PRC utilizes cyber-espionage to penetrate the computer networks of U.S. businesses and government agencies. This is evidenced by a recent Chinese cyber-attack on Google's computer systems in December 2009. PRC intelligence operations in the United States have become so pervasive that U.S. law enforcement officials have identified China as the most active foreign power involved in illegal acquisition of American technology.


The PRC utilizes a variety of methods to operate in the United States.The individuals attempt to acquire the targeted information by utilizing open sources such as libraries, research institutions and unclassified databases. In addition to co-opting Chinese travelers to carry out specific intelligence operational activities, the PRC often debriefs Chinese scientists who participate in scholarly exchange programs, or who attend trade missions, scientific cooperation programs and other similar events.[8] Moreover, the character of the Chinese political system allows the state great power to compel Chinese citizens to cooperate. Consequently, the PRC is able to utilize a vast network of contacts recruited to collect and steal intelligence on cutting edge U.S. technologies, including the most sensitive military developments.
Partnerships are started between Chinese civilian companies and foreign companies in order to give Chinese defense industries access to advanced technologies. The regulatory and commercial environment in China places intense pressure on American and other foreign companies to transfer technology to their Chinese partner companies as part of doing business in the PRC. In order to remain globally competitive, foreign companies are almost always willing to provide technology, capital, and manufacturing expertise in order to obtain access to Chinese markets. High-technology equipment is also purchased by PRC recruited agents running front companies in Hong Kong. Some of the items acquired are dual-use components, which can be used for both military or civilian purposes. These items may include computers, semiconductors, software, telecommunications devices, and integrated circuits. Furthermore, the PRC will use Chinese state-run firms to outright purchase American companies with access to the targeted technology.
The PRC also accesses restricted foreign technology through industrial espionage. U.S. Immigration and Customs Enforcement officials have rated China's industrial espionage and theft operations as the leading threat to the security of U.S. technology. Between October 2002 and January 2003 five Chinese businessmen were accused of illegally shipping equipment and trade secrets from California to China.U.S. Officials were able to prevent one Chinese man from shipping a recently purchased high-speed computer from Sandia National Laboratories, which had been used on classified projects including the development of nuclear weapons.