An analysis ofoperational activities reveals a wide range of tradecraft practices (see Figure 5): As illustrated, the most frequently employed elements of tradecraft include using false names or documents to ship information or technology. Practice responses The goal of these foreign influence operations directed against the United States is to spread disinformation, sow discord, push foreign nations policy agendas, and ultimately undermine confidence in our democratic institutions and values. With Such Low Win Rates, Should Law Firms Respond to So Many RFPs? The SCA would require such reports to include "an evaluation" of foreign government assisted "malign influence or espionage activities" directed at IHEs "aimed at obtaining research and development methods or secrets related to critical technologies." We tend to think of espionage as involving information classified under national security legislation and relating to political or military secrets. An unprecedented, sustained, and multi-pronged campaign of activity that does not constitute traditional military force or espionage threatens to exert a stealthy and non-attributable influence upon American attitudes toward international affairs at a moment of global crisis. Espionage threat from the Chinese government: "We believe that there's no other country than China that poses the most severe intelligence threat to America. American policymakers should continue to distinguish between Chinas economic espionage and more traditional spying targeting U.S. government agencies, defense contractors, and other parts of the national security establishment. 951 to pursue conduct outside the context of traditional espionage. 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. However, no group has been as successful at drawing people into its perverse ideology as ISIS, which has proven dangerously competent at employing such tools. for Us, The CCPs Organization Department makes all senior personnel appointments. The Many Benefits of Reviewing and Updating Bylaws, Not So Fast: The Rights of Victims in Corporate Deferred Prosecutions, Defense Witness Immunity: Time for Supreme Court To Weigh In, Law.com Editors and Analysts Offer Top Trends to Watch for 2023. The Committee looks . Any company with a proprietary product, process, or idea can be a target. The Department of Justice has in recent years indicted numerous Chinese spies, hackers, and companies for their involvement in stealing U.S. IP. An adversary uses technical countermeasures to block a previously undisclosed or classified U.S. intercept technology. The goal of cyber espionage, which may also be referred to as cyber spying, is to provide the attacker with information that gives them advantages over competing companies or governments. Traditional espionage encompasses a government's efforts to acquire clandestinely classified or otherwise protected information from a foreign government. As members of this Committee know, for many years the Department of Justice expended too little energy enforcing FARA, resulting in an explosion both here in Washington and across the country of unregistered agents working on behalf of foreign governments. Taking short trips. Both Barrack and Rafiekian were charged under 951 of the U.S. Criminal Code, which has roots in the Espionage Act of 1917, and broadly prohibits agents of foreign governments from acting in the United States without first notifying the Attorney General. Broadly speaking, the government response can be divided into three parts: encouraging better defense; prosecuting spies; and increasing costs in an effort to punish and deter unconventional spying. Distribution of Chinese Espionage Activities in the U.S. Chinas main espionage activities against the United States are focused on the illegal export of military and dual use technology. The final aspects of Chinese espionage activities are their use of specific clandestine collection techniques commonly known as espionage tradecraft. Chinese government agencies, SOEs, companies and individuals employ varying levels of sophistication of espionage tradecraft. Site Map, Advertise| Cyber Attacks, Potential espionage indicators (PEIs) are activities by an individual who may have volunteered or been recruited by a foreign entity as a writing espionage agent. Any unprotected trade secret can be illegally stolen. Weak passwords Almost two years ago, I established the Foreign Influence Task Force (FITF) to identify and counteract malign foreign influence operations targeting the United States. But the interconnectedness of the modern world, combined with the anonymity of the Internet, have changed the nature of the threat and how the FBI and its partners must address it. These individuals are FTO-inspired individuals who are in the U.S., have been radicalized primarily in the U.S., and are not receiving individualized direction from FTOs. The category of traditional espionage can be seen at 18 percent; but is considerably lower when Taiwan is removed as a PRC intelligence target. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. The government must also provide a description of the information sought and the places or facilities that will be searched. Acts of espionage and foreign interference can put Canada at a disadvantage, enabling foreign countries and organizations to further their own strategic interests, at Canada's expense. A .gov website belongs to an official government organization in the United States. Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives. China is pursuing a whole-of-society approach to its technological capabilities that includes purchasing innovative companies through overseas investments, requiring western companies to transfer cutting edge technologies to China as a condition of market access, providing vast state resources to finance domestic technological development, and financing training for top Chinese students and researchers overseas and paying a hefty premium to attract talent back to China. Other U.S. agencies are also working to expand cutting-edge U.S. R&D. The industry-leading media platform offering competitive intelligence to prepare for today and anticipate opportunities for future success. Both options are priced the same. A lock () or https:// means you've safely connected to the .gov website. Beginning under President Obama and continuing under President Trump, the Department of Homeland Security (DHS) has launched programs to encourage the private sector to harden defenses. Victims of Chinas espionage efforts include major defense and aerospace companies, pharmaceutical firms, technology research companies, manufacturers, and universities. Taking classified material home, illegal downloads, unreported contact with foreign nationals. Recruiting personnel for a terrorist organization Law Offices of Gary Martin Hays & Associates Economic espionage, which is mainly conducted by private companies or individuals, makes up 23.5 percent of cases. 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 . The operational details revealed in individual cases implies this phenomenon is due to the following factors: no training program for handlers or recruited assets, differences in the various SOEs, and the variables of espionage targets to include military, space, dual use, or industrial technologies. In approximately 60 cases I reviewed, Chinese companies or individuals were acting unilaterally for commercial benefit only. Simply put, if a country is continually trying to collect information on specific components of the F-35 aircraft, it is because it lacks the required information for its planned purposes. Contact Us| Outright theft of U.S. and western intellectual property (IP) is a key piece of Chinas strategy, but it is only a piece. Never answer questions you feel uncomfortable That type of understanding takes evidence based off detailed analysis of a sufficient body of data. CCP embedded committees manage all actions within directly managed SOEs. I will address three issues in my testimony before you this morning. International conventions, seminars, and exhibits U.S. Trade Representative Lighthizer and President Trump need to demand major, systematic changes in a range of Chinese trade abuses before relenting on the tariffs and other measures the U.S. has imposed. Asia, Southeast The PLA was involved in 61 such cases. While it is challenging to accurately estimate the costs of such espionage, in 2017 the U.S. China IP Commission estimated that the total cost of Chinas theft of IP, which also includes more prosaic forms of IP theft like piracy and counterfeiting, costs the U.S. economy at least $225 billion annually and possibly as much as $600 billion. Customer Service| Together, they make up 54 percent of cases. 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. In 54 cases, entities used no tradecraft or substantive attempts to hide the espionage activity. There are 150,000 SOEs in China, 50,000 of which are owned by the central government and include aerospace and defense companies, research institutes, technology transfer organizations. In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. The person may. 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. An adversary is able to anticipate DoD plans and activities. U.S. Federal law enforcement office 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. Chinese agents have also physically broken in to U.S. corporate offices. 13694 (2015) and E.O. Practice Communications Security I urge the government to continue its existing lines of effort, including continuing to ensure that U.S. telecommunications networks are robustly defended against Chinese unconventional espionage and to continue aggressively prosecuting Chinas espionage efforts. DOJ has also faced repeated setbacks in its prosecution in the Eastern District of Virginia of Bijan Rafiekian, former business partner of Trumps National Security Advisor Michael Flynn, accused of acting as an illegal agent of the Turkish government in an effort to obtain the extradition of a Turkish dissident. Emily Kilcrease, View All Reports Do not leave equipment unattended, in hotel safes or left in vehicles. The U.S. recently charged Chinese spies and companies with trying to steal trade secrets from the semiconductor industry, and charged a Chinese agent with collecting information on Chinese nationals working in the U.S. for possible recruitment by Chinas spy agencies. The European conflict has laid bare several vulnerabilities in the TNI's modernization plans. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Over the course of the last seven years, foreign investment in the U.S. has more than doubled. 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. The scale and scope of China-nexus targeted intrusion activity is unlikely to contract in 2023, as cyber espionage remains a critical instrument to support the CCP's strategic and economic. Subscribe These malign activities can include assassinations, kidnappings and disinformation operations, alongside traditional espionage activities, but with far more aggressive use of proxies: Think of . Task force personnel work closely with other U.S. government agencies and international partners concerned about foreign influence efforts aimed at their countries, using three key pillars. Disgruntled And third, I will offer some recommendations on additional policy responses that the United States should consider going forward. The third major line of response has been to increase costs to China over its espionage program and to take action against specific Chinese companies that engage in and/or profit from unconventional espionage. For example, the Trump Administration and this Congress have taken action to restrict the use of Chinese-made network equipment in U.S. telecommunications networks over concern that such equipment could facilitate Chinese espionage in the U.S. Penalty for an organization In addition to the threat posed by foreign influence, the FBI is also concerned about foreign investment by hostile nation states. The U.S. government has steadily increased its response to the threat of China's unconventional espionage. 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. If you feel you are being solicited for information, which of the following should you do? This Committee and the Congress as a whole should consider legislative reforms to expand the reach of FARA or to adopt other disclosure legislation that would ensure that Chinese activities related to universities and other non-profits are fully subject to public disclosure requirements. All Rights Reserved. Death, Theft of Trade Secrets for a Foreign Govenment, Penalty for individual Don't simply believe the the unexpected activity was coincidental Asia, Central Espionage and counterespionage have been essential tools of statecraft for centuries, of course, and U.S. and Chinese intelligence agencies have been battling one another for decades. Report, Trans-Pacific In recent years we have broadly seen two types of Chinese espionage targeting U.S. colleges and universities. Click here to subscribe for full access. Non-DoD civilians may face sanctions. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. PLA collection capabilities include military attachs conducting overt and clandestine collection and collectors under other government and commercial covers. In addition to beaming out its perspectives via Chinese state media, Beijing is aspiring to control both the structure and norms of global information networks. Based on an actual case, the video illustrates how one company was targeted by foreign actors and what the FBI did to help. Simultaneously, over the last year, propaganda from al Qaeda leaders seeks to inspire individuals to conduct their own attacks in the U.S. and the West. Thank you again for the opportunity to testify today and I look forward to your questions. The winners will be those who break the old rules of the spy game and work out new ones. Intercepts of cell phones or wireless signals, 1. 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. 2023 Center for a New American Security (en-US). Members of the Committee may have seen recent press reports about marketing firms and hedge funds buying cell phone location data showing the near-real time locations of tens of millions of Americans going about their daily routines. We also handle intelligence operations and oversight. Economic Espionage Act of 1996. Espionage is now addressed by 3 offences in the Bill: obtaining or disclosing protected information; obtaining or disclosing trade secrets; and assisting a foreign intelligence service. Now, more than eight years since the climax of the Cold War, the threat of industrial and economic espionage has percolated once again to the forefront, and the tools of the intelligence collector . It is time for Pakistans political and military establishment to wake up and reconcile with the fact that they cant negotiate their way to peace. Evoke or draw out (a response, answer, or fact) from someone in reaction to ones own actions or questions. , Statement Before the House Homeland Security Committee. A fine of not more than $5,000,000, Personnel who fail to report CI activities of concern as outlined in Enclosure 4 of DoD Directive 5240.06 are subject to appropriate disciplinary action under regulations, Under DoDD 5240.06 Reportable Foreign Intelligence Contacts, Activities, Indicators and Behavior; which of the following is reportable, Contact with known or suspected foreign intelligence The message is not tailored solely to those who overtly express signs of radicalization. Doreign officials reveal details they should not have known. Sixty-three people were killed and thousands injured.