traditional espionage activity includes foreign government

Chinese economic espionage, on the other hand, is an unconventional threat and requires an unconventional response. The Obama administration issued two Executive Orders, E.O. It is absolutely essential to stop Chinese unconventional espionage. In closing, I would like to offer two general thoughts. The division has a wide range of responsibilities. The International Trade Commission (ITC) has authority under Section 337 to investigate claims that an import uses stolen U.S. IP and to exclude infringing products, and has excluded a number of Chinese products in recent years. Copying files Once established, the foreign intelligence officer makes an offer to help the target with his problems. Good morning Chairman Thompson, Ranking Member Rogers, and members of the committee. A 2014 estimate by the Center for Responsible Trade and Enterprise (CREATe) and PriceWaterhouseCoopers argued that the cost of trade secret theft could amount to between 1 percent and 3 percent of GDP annually. In a major coup, this past October Justice for the first time managed to extradite a suspected Chinese spy from a third country to the U.S. to face trial for his involvement in stealing U.S. trade secrets. On the military side, the Peoples Liberation Army (PLA) General Staff Headquarters, Second Department is responsible for collecting military information, including related foreign technology. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. Recent prosecutions, however, have relied on 951. This is due, in part, to their lack of a direct connection with an FTO, an ability to rapidly mobilize, and the use of encrypted communications. The Trump administration has expanded U.S. government efforts to impose costs on China over its economic espionage. I appreciate your continued support and look forward to answering any questions you might have. We take all potential threats to public and private sector systems seriously and will continue to investigate and hold accountable those who pose a threat in cyberspace. I'd the target takes the bait, the foreign intelligence officer recruits the target to move into a more clandestine relationship. On a daily basis, these actors seek to steal our state secrets, our trade secrets, our technology, and the most intimate data about our citizensthings of incredible value to all of us and of great importance to the conduct of our government business and our national security. In the developing phase the foreign intelligence officer attempts to establish a close relationship with the target. Based on an actual case, The Company Man: Protecting Americas Secrets illustrates how one U.S. company was targeted by foreign spies and how that company worked with the FBI to bring the perpetrators to justice. But China is by far the most active practitioner of economic espionage today. However, the threat posed by terrorismboth international terrorism (IT) and domestic violent extremismhas evolved significantly since 9/11. Almost two years ago, I established the Foreign Influence Task Force (FITF) to identify and counteract malign foreign influence operations targeting the United States. Although the Obama administration never sanctioned any Chinese individuals or companies using these authorities, it did use the potent threat of sanctions, as well as criminal prosecutions and significant high-level diplomatic engagement, to convince China to enter into a 2015 agreement in which Chinese President Xi agreed that China would not knowingly support cyber-enabled theft intellectual property for commercial gain. But targeted sanctions against Chinese entities engaged in economic espionage or benefiting from stolen U.S. IP would send a powerful deterrent against such activities. The first is economic espionage, which is intended to provide China with commercial advantage over U.S. firms. The U.S. Intelligence Community is a federation of executive branch agencies and organizations that work separately and together to conduct intelligence activities necessary for the conduct of foreign relations and the protection of the national security of the United States. Report, Trans-Pacific Economic espionage, which is mainly conducted by private companies or individuals, makes up 23.5 percent of cases. procuring supplies for terrorist organizations 2 Commencement. Foreign Intelligence Threats Traditional FIE Activity includes: Foreign Intelligence Entities operating FBI agents, analysts, and computer scientists are using technical capabilities and traditional investigative techniquessuch as sources, court- authorized electronic surveillance, physical surveillance, and forensicsto counter these threats. These techniques were used approximately one-third of the time. Thank you for the opportunity to appear before you today to discuss the current threats to the United States homeland. First, I will offer an assessment of aspects of the threat. An official website of the United States government. Espionage activities involving the Peoples Liberation Army reflect primarily illegal arms or military technology transfers where the PLA was known, or believed to be the end user for example, the PLA was assumed the ultimate end user or customer if a TOW anti-tank system (tube-launched, optically tracked, wireless-guided weapon system) was being illegally shipped to China. Our Team Account subscription service is for legal teams of four or more attorneys. In approximately 60 cases I reviewed, Chinese companies or individuals were acting unilaterally for commercial benefit only. Unexplained affluence The second major U.S. government response has been increasingly aggressive Justice Department efforts to prosecute Chinese spies. Cleared contractor facility In modern day, it's been used against those . Is there an need to share? But if China proves willing to make systemic changes, the administration should be willing to relax the trade remedies the U.S. has imposed, rather than locking the U.S. into an economic cold war with Beijing. Fortunately, efforts here in Congress, including by Chairman Grassley and other members of this Committee, have drawn public attention to this issue, and Assistant Attorney General Demers and the Department of Justice have significantly expanded FARA enforcement. Most widely reported these days are attempts by adversarieshoping to reach a wide swath of Americans covertly from outside the United Statesto use false personas and fabricated stories on social media platforms to discredit U.S. individuals and institutions. Expressing an obligation to engage in violence Death, Theft of Trade Secrets for a Foreign Govenment, Penalty for individual I the Handling phase the foreign intelligence officer will instruct the target on specific information needed. Figure 2: Chinese Organizational Clusters Committing Espionage. A lock () or https:// means you've safely connected to the .gov website. We will continue working to identify individuals who seek to join the ranks of foreign fighters traveling in support of ISIS, those foreign fighters who may attempt to return to the United States, and HVEs who may aspire to attack the United States from within. Nations have been spying on the United States (and us on them) since the American Revolution. In 54 cases, entities used no tradecraft or substantive attempts to hide the espionage activity. Testimony before the Senate Judiciary Committee, By We expect this trend to continue. By Barry Black and Jonathan Robert Nelson, Shearman and Hogan Lovells Call Off Merger Talks, Early Reports: 2023 Am Law 200 Financials, Beyond Excess Capacity, Pooled Services and Automation Expedite Staff Layoffs, Dozens of Law Firms Grew Their Equity Partner Tier, Even as Profits and Demand Plummeted. Examples of PEI include, Unexplained affluence, concealing foreign travel, unusual work hours, avoiding polygraph 13694 (2015) and E.O. The U.S. also needs to start getting a handle on the vast quantity of Americans personal information that is all too readily available to make sure that it cannot be exploited by spies. The IC remains focused on the missions of cyber intelligence . ISIS uses traditional media platforms as well as widespread social media campaigns to propagate its ideology. In many respects, the goals of this kind of espionage are similar to economic espionageto capture technological advances that could prove valuable to Chinese firms and potentially to the Chinese military. ), LTG Anthony R. "Tony" Ierardi, USA (Ret. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. The PLA was involved in 61 such cases. In the spotting phase the foreign intelligence officer identifies the target. But China does not only steal corporate crown jewels like trade secrets: It targets a wide variety of information that can provide Chinese companies with commercial advantage. U.S. federal research and development (R&D) spending as a percentage of U.S. GDP, meanwhile, suffered through a multi-year decline before Congress finally began to reverse the trenda welcome developmentfor fiscal year 2018, which saw the largest federal research spending increase in a decade. In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. While the U.S. government and defense contractors must continue to harden their defenses against Chinese espionage and the U.S. government must work aggressively to root out, expel, and prosecute Chinese spies, the framework for addressing this kind of espionage is well developed. Share sensitive information only on official, secure websites. And the U.S. would need to take the Ronald Reagan line towards Soviet military commitments when it comes to Chinese concessions, Trust, but verifywith an emphasis on the verify. But we should not foreclose the possibility of cooperation. Provide non-descript answers Third, the Trump administration should use Committee on Foreign Investment in the United States (CFIUS) authorities to prevent China from acquiring technologies that it is also trying to steal. A detailed look into how, why, and where Chinese spies are active in the United States. Money, Tokyo In 2016 broad bipartisan majorities of Congress passed the Defend Trade Secrets Act, which expanded the rights of U.S. companies to sue Chinese firms and other foreign competitors that steal their IP. We have also been confronting a surge in terrorist propaganda and training available via the Internet and social media. Practice Communications Security Intelligence & Espionage. The recent attacks in Texas and California underscore the continued threat posed by domestic violent extremists and perpetrators of hate crimes. As part of a nationwide campaign to raise awareness of the growing economic espionage threat, the FBI has released a short video, "The Company Man: Protecting Americas Secrets." Similarly, even as the U.S. increases pressure on Chinas unconventional espionage, we should make sure that we do not inadvertently shut down or prevent valuable academic study, research and development, and other activities that benefit the U.S. For example, the U.S. derives major benefits from the hundreds of thousands of highly-skilled foreigners, including from China, who come to the U.S. to study, to work, and to start businesses. Us, Write The minimal application of tradecraft is expected, as these cases typically do not involve professional intelligence operatives (either case officers or agents). The poor performance in oversight and case management is possibly due to the highly politicized nature (CCP management) of Chinese intelligence. Foreign Intelligence Threats - Traditional Activity Traditional activity Forgoing intelligence entities operating out of: Embassies Consulates Universities Trade missions Insider Spies (Insider Threat) Foreign Intelligence Threats Non-Traditional Activity Foreign government-sponsored commercial enterprises International trafficking organizations Terminating employment Such crimes are not limited to the United States and, with the aid of Internet like-minded hate groups, can reach across borders. The State Department has recently pressed U.S. allies to similarly restrict the use of high-risk Chinese-made network equipment in their national telecommunications networks. The third pillar of our approach is based on strong relationships with the private sector. Lastly, in 27 cases, roughly 9 percent of the total, case officers and/or agents displayed a more sophisticated level of tradecraft. The first line of response has been to encourage companies to harden their networks against cyber intrusions and to bolster defenses against other types IP theft, such as by corporate insiders. Do not leave equipment unattended, in hotel safes or left in vehicles. Former National Security Agency Director Keith Alexander has called Chinas IP theft greatest transfer of wealth in history. And as the 2018 NCSC report noted, the threat is growing due to expanded cloud-based computer networks and the internet of things (the home appliances, cars, and other things that will be connected to the internet)--which, according to the NCSC will create an incalculably larger exploitation space for cyber threat actors., Casual discussions of Chinese economic espionage often focus on high-end cyber intrusions into U.S. corporate networks. Foreign influence operations have taken many forms and used many tactics over the years. One might expect poor tradecraft from nonprofessional intelligence entities such as individuals, companies, and SOEs. Second, we are focused on information and intelligence-sharing. Due to online recruitment, indoctrination, and instruction, FTOs are no longer dependent on finding ways to get terrorist operatives into the United States to recruit and carry out acts of terrorism. 2023 Diplomat Media Inc. All Rights Reserved. Our adversary seeks to expand its Unusual interest in information outside the scope of assigned duties The world of espionage is facing tremendous technological, political, legal, social, and commercial changes. As I said earlier, I commend the work of the Department of Justice, the FBI, the Department of Homeland Security, USTR and other federal agencies to address Chinas unconventional espionage threat. Your article was successfully shared with the contacts you provided. A .gov website belongs to an official government organization in the United States. The FBI uses all lawful investigative techniques and methods to combat these terrorist threats to the United States. Revelations of broad-ranging Russian efforts to influence the 2016 presidential election, which resulted in criminal charges against multiple Russian intelligence officers brought by special counsel Robert Mueller, focused attention on criminal laws designed to prohibit the activities of foreign agents in the United States. This button displays the currently selected search type. Espionage operations have expanded dramatically, increasing in the number of operations, personnel, government and SOEs, and foreign targets sets. View All Articles & Multimedia. Only a tenth of Russian spy operations in Europe have been uncovered, according to the former MI6 boss Sir John Sawers, after it emerged that the two men accused of carrying out the Salisbury . Nearly half of Chinas espionage efforts target U.S. military and space technologies. Individuals used true names and open communications including emails, text messages, and phone calls. Those include going after terrorists and spies, including in cyberspace, countering foreign malign influence, enforcing our export controls and sanctions laws, and reviewing foreign investments in U.S. companies. The Trump administration should use CFIUS to block Chinese companies that have stolen U.S. technology from acquiring companies in the United States. The problem is that these recent indictments and arrests are only two of hundreds, if not thousands of cases. Store information in Secure Facilites Spies from 20 foreign intelligence agencies, including Nato allies such as France and Germany, are attempting to steal Britain's most sensitive secrets. This was often the case in illegal export of military technology, source code, large-scale agricultural and industrial production and manufacturing techniques. Law Offices of Gary Martin Hays & Associates When expanded it provides a list of search options that will switch the search inputs to match the current selection. The PJCIS noted 'ambiguity' in relation to this term and recommended the . Outright theft of U.S. and western intellectual property (IP) is a key piece of Chinas strategy, but it is only a piece. Contact with international terrorist Taking classified material home DOJ officials initially touted one such law, the Foreign Agents Registration Act (FARA), 22 U.S.C. Former U.S. Defense Secretary Robert Gates said in an interview that there are probably a dozen or 15 countries that steal our technology. In 2015 a South Korean company plead guilty to conspiring to steal proprietary DuPont information about Kevlar, the body armor material, and paid more than $300 million in fines and restitution. It is a pleasure to be joined by two distinguished co-panelists who will also speak about the threat and I will focus on the aspects of the threat that I am most familiar with: how China uses unconventional, economic espionage as a component part of a comprehensive strategy to promote Chinas own high-tech industries. $500,000 fine, and/or not more than 15 years in Federal prison The two countries appeared to quietly reaffirm the agreement in October 2017. The FITF is uniquely positioned to combat this threat. In its recent stepped-up enforcement efforts against foreign influence in American politics, the DOJ has faced some high-profile setbacks when it has sought to use the broad reach of 18 U.S.C. Amid great power competition, life in the China-Russia borderlands reveals the paradoxes underpinning the Beijing-Moscow friendship. Similarly, SOEs are aggressive in conducting or supporting espionage (72 acts total), stealing primarily advanced military technology. Share sensitive information only on official, secure websites. The winners will be those who break the old rules of the spy game and work out new ones. To combat the threat at home, the FBI established the Domestic Terrorism-Hate Crimes Fusion Cell in spring 2019. Prepare in advance Espionage (spying) can involve the disclosure or theft of many types of information. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. International conventions, seminars, and exhibits 13757 (2016) that authorize the Treasury Department to impose sanctions on entities that engage in various forms of cyber hacking and on companies that steal trade secrets or other high-value IP via cyber-enabled means, or which benefit from such stolen IP. We must build toward the future so that we are prepared to deal with the threats we will face at home and abroad and understand how those threats may be connected. Along with our domestic and foreign partners, we are collecting and analyzing intelligence concerning the ongoing threat posed by foreign terrorist organizations and homegrown violent extremists.

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