China has expanded its espionage efforts considerably over the last 20 years. Share sensitive information only on official, secure websites. Contact with international terrorist Recruiting personnel for a terrorist organization Introduction The alleged scheme ran from 2010 to 2015 and targeted turbofan engine technology developed through a U.S.-French partnership. Almost two years ago, I established the Foreign Influence Task Force (FITF) to identify and counteract malign foreign influence operations targeting the United States. China is drawing lessons from Russias invasion of Ukraine. 2 Commencement. U.S. policymakers however, have rightly sought to aggressively deter and punish Chinese espionage intended to steal trade secrets and other IP from the U.S. private sector that is then transferred to Chinese companies for commercial advantage, and to crack down on other forms of unconventional espionage that threaten Americas technological, economic, and military edge. The Department of Justice has even indicted Chinese spies for stealing strategy information from a U.S. labor union that strongly opposed Chinese trade practices. However, cases attributed to the Ministry of State Security show an astounding nine cases where case officers and recruited agents demonstrated no discernible tradecraft. Copying files, unexplained absences, terminating employment, Counterintelligence Awareness & Reporting Cou, CI Awareness and Reporting Briefing Assessment, Counterintelligence Awareness and Reporting f, Level I Antiterrorism Awareness (JS-US007), J3OP-US261-HB Emergency Preparedness Response, TEMA 28: Bacterias de interes biotecnologic. Detailed analysis of these cases provides ample evidence that China is conducting espionage, as well who is responsible, their information objectives, gaps in their knowledge, and operational tradecraft techniques. This Act is the National Security Legislation Amendment (Espionage and Foreign Interference) Act 2018. Sanctions need to be deployed carefully to avoid unintended consequences and, at least initially, should be used only against egregious violators. Center for a New American Security (en-US), Constructing Regional Partnerships and Seizing Emerging Opportunities, General Mike Holmes, U.S. Air Force (Ret. Outright theft of U.S. and western intellectual property (IP) is a key piece of Chinas strategy, but it is only a piece. Composed of subject matter experts from both the Criminal Investigative and Counterterrorism Divisions, the fusion cell offers program coordination from FBI Headquarters, helps ensure seamless information sharing across divisions, and augments investigative resources. China is stepping up anti-espionage activities amid worsening ties with the United States and a renewed focus on national security ahead of a key Communist Party anniversary later this year. No Thanks The charges included acting as an agent of a foreign government without notifying the attorney general, a charge the Justice Department has referred to as "espionage lite," a violation of . Both options are priced the same. In closing, the work being done by the FBI is immeasurable; however, we cannot afford to be complacent. 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. As Australias military ties with the U.S. deepen, the Top End becomes even more vital to Australian security. View All Articles & Multimedia. Espionage operations have expanded dramatically, increasing in the number of operations, personnel, government and SOEs, and foreign targets sets. If Beijing sees no path to a cooperative economic relationship with Washington and instead believes that it will face mounting U.S. pressure regardless of any concessions Beijing may offer, Beijing will have little incentive to curb its efforts to steal U.S. technology. Terms of Service. Gen. Li Shangfu, with deep ties to Chinas military space enterprises, is widely expected to become Chinas next minister of defense. The act of securing information of a military or political nature that a competing nation holds secret. I the Handling phase the foreign intelligence officer will instruct the target on specific information needed. 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. 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. This button displays the currently selected search type. Asia, Asia Do not probe for information The Administration and Congress should also look for ways to make these kinds of tools multilateral, working with foreign governments to ensure that foreign countries do not import products made with stolen U.S. IP and that the U.S. does not import products made with stolen foreign IP. Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. The Defense Departments Defense Advanced Research Projects Agency (DARPA), for example, last year launched a $1.5 billion, five-year initiative to support advances in chip technology. An adversary uses technical countermeasures to block a previously undisclosed or classified U.S. intercept technology. The threats posed by foreign fighters, including those recruited from the U.S., are very dynamic. Russia and China have been identified as . Don't miss the crucial news and insights you need to make informed legal decisions. Section 951 encompasses any activity by an "agent of a foreign government," which is defined as "an individual who agrees to operate within the United States subject to the direction or. 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. In 54 cases, entities used no tradecraft or substantive attempts to hide the espionage activity. 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. 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. Click here to subscribe for full access. Foreign Intelligence Threats Traditional FIE Activity includes: Foreign Intelligence Entities operating The FBI is working closely with partners in the Intelligence Community and in the federal government, as well as with state and local partners, to establish a common operating picture. A detailed look into how, why, and where Chinese spies are active in the United States. The two countries appeared to quietly reaffirm the agreement in October 2017. In addition to these Executive Branch actions, companies and Congress have played an important role in Americas response. For physical searches, the government must show that the place to be searched contains "foreign intelligence information" and that it is used, owned, or possessed by an agent of a foreign power or a foreign power. 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. They include foreign states, criminals, "hacktivist" groups and terrorists. The FBI is the lead agency for exposing, preventing, and investigating intelligence activities in the U.S. Because much of todays spying is accomplished by data theft from computer networks, espionage is quickly becoming cyber-based. The group has been observed targeting healthcare, telecom, technology, and video game industries in 14 countries. The FBI assesses HVEs are the greatest, most immediate terrorism threat to the homeland. In 2018, CCP leader and Chinese President Xi Jinping directed all SOEs to amend their bylaws to ensure the concepts of service to the CCP as well as national and economic security are placed above profit. 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. Spies might seem like a throwback to earlier days of world wars and cold wars, but they are more common than everand they are targeting our nations most valuable secrets. The Trump administration should use CFIUS to block Chinese companies that have stolen U.S. technology from acquiring companies in the United States. Spies from 20 foreign intelligence agencies, including Nato allies such as France and Germany, are attempting to steal Britain's most sensitive secrets. Advocating violence for terrorist organization Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, typically carried out by students,. Hacking back proposals would need to be carefully tailored to mitigate potential unintended consequences and to protect innocent parties, and the risks need to be carefully evaluated. Through the Internet, terrorists anywhere overseas now have direct access to our local communities to target and recruit our citizens and spread their message faster than was imagined just a few years ago. Emily Kilcrease & Michael Frazer. Never answer questions you feel uncomfortable 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. The views in this article are the authors own and do not reflect the views of the U.S. government. In the developing phase the foreign intelligence officer attempts to establish a close relationship with the target. Money, Tokyo Figure 3: Distribution of Chinese Espionage Cases in the United States. International conventions, seminars, and exhibits This initiative will also work to use tools like the Foreign Agent Registration Act (FARA) to require better disclosure of Chinese activities across the United States. 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. Weeks earlier, on October 10, the FBI announced the arrest of Mr.Yanjun Xu, alleged deputy division director of the Jiangsu Province Office (sixth bureau) of the Ministry of State Security, Chinas main civilian spy agency. Fifth, I would encourage Congress to carefully study proposals to enable U.S. companies who are victims of Chinese economic espionage to hack back. There are significant concerns about hacking back proposals but I believe the concept merits careful study. More deaths were caused by domestic violent extremists than international terrorists in recent years. These can number in the thousands and reflect the organizations knowledge gaps. Customer Service| But China is investing billions of dollars in its own technological prowess and can draw on the expertise of millions of Chinese engineers and scientists who have studied at top universities globally. This week Emily Kilcrease, director of the Energy, Economics, and Security program at CNAS, joins The Asia Chessboard podcast from CSIS for a wide ranging discussion on the i By As former Cisco CEO John Chambers once said, There are two types of companies: those who have been hacked, and those who don't yet know they have been hacked.. I do not want to overstate the risk: the vast majority of research collaboration benefits the U.S. And the U.S. benefits from the world-class students and researchers we are able to attract to the U.S., many of whomif they can get visas to stayhelp found and build cutting edge companies in the U.S. ), LTG Anthony R. "Tony" Ierardi, USA (Ret. Just last month, a new law reorganized the cyber security operations of DHS in order to improve their effectiveness, including establishing DHSs Cybersecurity and Infrastructure Security Agency. Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Second, we are focused on information and intelligence-sharing. APT41 is a group that carries out Chinese state-sponsored espionage activity in addition to financially motivated activity. 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. Amid great power competition, life in the China-Russia borderlands reveals the paradoxes underpinning the Beijing-Moscow friendship. Rachel Ziemba. In addition, there has been a debate in the community about the extent to which the apparent reduction in attacks simply represented Chinese efforts to restructure how China engages in cyber operations, rather than a genuine change in Chinese intentions. The Obama administration issued two Executive Orders, E.O. 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. Attempting to gain access, without need-to-know As the threat to harm the United States and U.S. interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, and international partnerships. 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. But universities do need to take appropriate precautions to ensure that China is not able to use academic collaboration to steal U.S. intellectual property or engage in other activities that might harm U.S. national security. Asia, South China has also tried to hack think tanks to understand policy and think tank engagement with government officials. Change the conversation Reportable International Terrorism Contacts, Activities, Indicators, and Behaviors include. For example, China and Chinese companies have repeatedly paid off corporate insiders at U.S. and western companies to simply walk out the door with high-value trade secrets. ISIS is not the only terrorist group of concern. Espionage activities correlated to their sponsoring organization (the customer receiving the information or technology) showed four distinct clusters of Chinese organizations engaging in espionage. Aimed at bolstering the government's arguments, the memo highlights in detail how the FBI identifies the activities of foreigners that would potentially be considered espionage. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas. Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific. Note as much as possible Foreign intelligence entity (FIE) is defined in DoD Directives 5240.06 as "any known or suspected foreign organization, person or group (public, private, or government) that conducts intelligence activities to acquire U.S. systems and programs. The FITF is also working with international partners to exchange intelligence and strategies for combating what is a shared threat. Any unprotected trade secret can be illegally stolen. Second, Congress should study ways to expand prohibitions on the import into the U.S. of items made with stolen U.S. IP, and the Trump Administration should work with allies to keep such products out of foreign markets. 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. Hostile actors conducting cyber espionage can target the government, military, business and individuals. 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. Counterintelligence is defined in Executive Order 12333, as amended, is "information gathered and activities conducted to protect against espionage, other intelligence activities, sabotage, or assassinations conducted by or on behalf of foreign governments or elements thereof, foreign organizations or foreign persons, or assassinations conducted by or on behalf of foreign governments or elements thereof, foreign organizations or forgiven persons, or international terrorist activities. We must seek out new technologies and solutions for the problems that exist today as well as those that are on the horizon. CI-21 proposes significant changes in the way the United States government approaches, and organizes itself to meet, the threat of foreign espionage and intelligence gathering. Taking classified material home, illegal downloads, unreported contact with foreign nationals. And getting access to this information would not even really be espionage as we typically think of it--the Chinese could simply set up a front company to buy the data commercially. Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. Congressional cybersecurity legislation enacted in 2014 has also played an important role in improving U.S. government efforts to harden U.S. defenses against Chinese and other attacks. We're looking at $200 billion to. 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 . Journalists, military veterans, and judicial figures are being targeted by foreign espionage agencies at "unprecedented" levels, with the country's intelligence chief revealing a "hive of spies . Our nation continues to face a multitude of serious and evolving threats ranging from homegrown violent extremists (HVEs) to cyber criminals to hostile foreign intelligence services and operatives. The Company Man: Protecting Americas Secrets, Economic Espionage: Protecting America's Trade Secrets, The Insider Threat: An Introduction to Detecting and Deterring and Insider Spy, Intellectual Property Protection: Safeguard Your Company's Trade Secrets, Proprietary Information, and Research, Safety and Security for the Business Professional Traveling Abroad, Safety and Security for U.S. Students Traveling Abroad, Higher Education and National Security: The Targeting of Sensitive, Proprietary, and Classified Information on Campuses of Higher Education, Best Practices in Supply Chain Risk Management for the U.S. Government, Two U.S. Citizens Arrested for Illegally Exporting Technology to Russia, Civil Forfeiture Complaint Filed Against Six Luxury Real Estate Properties Involved in Sanctions Evasion and Money Laundering, Russian National Charged with Supplying U.S. Technology to the Russian and North Korean Governments, Corrected: Four Florida Men Arrested in Plot to Kill Haitian President, Grand Jury Returns Indictment Against 11, U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of Iran, Associate of Sanctioned Oligarch Indicted for Sanctions Evasion and Money Laundering, Chinese National Sentenced to Eight Years in Prison for Acting Within the U.S. as an Unregistered Agent of the Peoples Republic of China, Former Special Agent in Charge of the FBI New York Counterintelligence Division Charged with Violating U.S. Sanctions on Russia, FBI.gov is an official site of the U.S. Department of Justice, Protect the secrets of the U.S. Intelligence Community, Protect the nations critical assets, like our advanced technologies and sensitive information in the defense, intelligence, economic, financial, public health, and science and technology sectors, Keep weapons of mass destruction from falling into the wrong hands. As a recent report by the Hoover Institution and the Asia Society put it, Chinese-backed associations on American campuses can provide a ready channel or entry point for the political departments of Chinas embassy and consulates in the US to gather information and coordinate action. Share on Facebook Facebook But recent FBI cases have shown that no industry, large or small, is immune to the threat. As the committee is well aware, the frequency and severity of malicious cyber activity on our nations private sector and government networks have increased dramatically in the past decade when measured by the amount of corporate data stolen or deleted, the volume of personally identifiable information compromised, or the remediation costs incurred by U.S. victims. Congress has also played an important role. conducting illegal covert or clandestine acts at the direction of, or for the benefit of, a foreign government or entity. View, About Thank you again for the opportunity to testify today and I look forward to your questions. However, the threat posed by terrorismboth international terrorism (IT) and domestic violent extremismhas evolved significantly since 9/11. Collection methods of operation frequently used by Foreign Intelligence Entities (FIE) to collect information from DoD on the critical technology being produced within the cleared defense contractor facilities we support include, Unsolicited requests for information This has taken several forms. Solicitation and marketing of services Responding to Chinas unconventional espionage threat will require a whole-of-society approach, not just a whole-of-government approach. The Espionage Act was amended in 1940 to increase the penalties it imposed, and again in 1970. Just as our adversaries evolve, so, too, must the FBI. Similarly, CFIUS should ensure that if the Chinese government has stolen or attempted to steal U.S. technology, no Chinese company should be able to acquire a U.S. company that designs or makes the technology that China attempted to steal. 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. Foreign intelligence services continue to employ more creative and more sophisticated methods to steal innovative technology, critical research and development data, and intellectual property, in an effort to erode Americas economic leading edge. We expect this trend to continue. But government tools must also be an important part of the U.S. government response. 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. (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Concurrent with this growth, foreign direct investment (FDI) in the U.S. has increasingly become a national security concern, as hostile nations leverage FDI to buy U.S. assets that will advance their intelligence, military, technology, and economic goals at the expense of U.S. national security. Up to life imprisonment We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. 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. Sometimes pressure is even applied by Chinas security services on the family members of those students it finds speaking out in unacceptable ways back in China.. The resources and capabilities of such actors vary. These elements of tradecraft included specially designed smartphone software for secure covert communications (U.S. vs. Kevin Mallory); third country meetings, or use of third parties (cutouts) in the United States for communicating information between the in-country handler and recruited asset, or the in-country handler and Chinese intelligence services. In closing, I would like to offer two general thoughts. The European conflict has laid bare several vulnerabilities in the TNI's modernization plans. There has also been a large rise in Section 337 investigations. 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. An adversary is able to anticipate DoD plans and activities. Traditional espionage (18 USC 792-799): The practice of spying or using spies to obtain information about the plans and activities of a foreign government. Lastly, in 27 cases, roughly 9 percent of the total, case officers and/or agents displayed a more sophisticated level of tradecraft. ), Next Generation National Security Fellows, The Shawn Brimley Next Generation National Security Leaders Fellowship, Joseph S. Nye, Jr. National Security Internship and Mentoring Program, 2022 CNAS National Security Conference: Security in the Balance, Sanctions by the Numbers: SDN, CMIC, and Entity List Designations on China, Since Russia Invaded Ukraine, Allies Levied More Than 11,000 Sanctions on Russia, Calling Check: Technology Competition with China. The scope of the criminal activity, including evidence of involvement by a foreign government, foreign agent, or foreign instrumentality The degree of economic injury to the trade secret owner The . Practice Communications Security For example, if China purchased this information, it could cross-reference location information with data it stole from the Office of Personnel Management about U.S. government employees, or against public record data about corporate executives. Women, Influence & Power in Law UK Awards 2023, Legalweek Leaders in Tech Law Awards 2023, WORKERS COMPENSATION ATTORNEY - Hartford, CT, Offering an Opportunity of a Lifetime for Personal Injury Lawyers, What Does Your Business Agreement Really Mean? Unusual work hours I'd the target takes the bait, the foreign intelligence officer recruits the target to move into a more clandestine relationship. In some of those cases (perhaps 20 percent), there was a clearly identifiable Chinese government or SOE as the ultimatecustomer for illegal exports or trade secrets. Counterintelligence Awarness Briefing - United States Naval Academy Recent ISIS videos and propaganda have specifically advocated for attacks against soldiers, law enforcement, and intelligence community personnel. With Such Low Win Rates, Should Law Firms Respond to So Many RFPs? Take time to use secure communications equipment ISIS uses traditional media platforms as well as widespread social media campaigns to propagate its ideology. United States v. Franklin, Rosen, and Weissman was an early 21st century court case from the United States District Court for the Eastern District of Virginia.The government prosecuted one Department of Defense employee (Franklin) and two lobbyists (Rosen & Weissman) for the American Israel Public Affairs Committee (AIPAC) for allegedly disclosing national defense information to persons 'not . In recent years a number of members of Congress have introduced legislation that would amend the CFAA to authorize hacking back by victim companies under certain circumstances. 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. Chinese military sources can tell us exactly what the PLA is learning. The. Historically, economic espionage has targeted defense-related and high-tech industries.