Al Qaeda maintains its desire for large-scale, spectacular attacks. The activities include assistance with specifications, forecasting, financing, procurement, quality assurance, order management, delivery, inventory management, distribution, human resources, information systems and reporting to improve the design and performance of country FP/RH supply chains (whether stand-alone or integrated) that manage and . Chairman Grassley, Ranking Member Feinstein, and Honorable Members of the Committee, it is a pleasure to be invited to speak to you today about one of the most important trade and national security issues that the U.S. confronts today: Chinas unconventional espionage against the United States. Nations have been spying on the United States (and us on them) since the American Revolution. Second, I will assess the policy responses that the U.S. has pursued to date to respond to this threat. 13694 (2015) and E.O. Analysis reveals several other interesting data points on the application of tradecraft. Congress has also played an important role. Foreign Intelligence Agency-What do they want? A lock () or https:// means you've safely connected to the .gov website. 1101 riveredge rd, connellsville, pa 15425; traditional espionage activity includes foreign government. 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. Cleared contractor facility 10. APT41 is a group that carries out Chinese state-sponsored espionage activity in addition to financially motivated activity. Senior administration officials made clear prior to President Trumps recent trade policy-focused meeting with Chinese President Xi that reductions in IP theft are a major administration priority, and reductions in Chinese IP theft should be a be a major U.S. demand in the U.S.-China trade negotiations that will occur over the next three months. Department of Justice indictments and private sector reports in recent years have accused Chinese hackers of breaking into the corporate networks of U.S. and western companies including defense contractors, non-profits, semiconductor firms, healthcare companies, industrial manufacturers, aerospace companies, media companies, solar companies, and electronics companies, among others. Expressing an obligation to engage in violence The term APT is commonly used in reference to the cyber threat posed by foreign intelligence services, or hackers working on behalf of such entities, but is not limited just to this and can equally be applied to other threat actors such as organized crime syndicates and those involved in traditional espionage. But universities risk being fertile place for this kind of espionage, given the open, international, and collaborative nature of most university research and universities legitimate interest in encouraging international collaboration. These activities support a national concerted effort to expand Chinas economic and security interests. The FBI indictment alleges Ji was tasked by his spymaster a senior MSS officer in the Jiangsu Province MSS office. The Trump administration has also begun to deploy targeted trade measures against Chinese beneficiaries of IP theft. 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. 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. However, other influence operations may include targeting U.S. officials and other U.S. persons through traditional intelligence tradecraft; criminal efforts to suppress voting and provide illegal campaign financing; concealing efforts to influence U.S. government activities, cyber attacks against voting infrastructure, along with computer intrusions targeting elected officials and others; and a whole slew of other kinds of influence, like both overtly and covertly manipulating news stories, spreading disinformation, leveraging economic resources, and escalating divisive issues. 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. And third, I will offer some recommendations on additional policy responses that the United States should consider going forward. 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. 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. If you feel you are being solicited for information, which of the following should you do? We remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda have the intent to carry out large-scale attacks in the U.S. Last month, under former Attorney General Jeff Sessions, the Department of Justice expanded on several years of increasing prosecutorial efforts by launching an important new initiative to combat Chinese economic espionage, which Assistant Attorney General Demers is leading. Edward Snowden (2013) There is some argument as to whether this is a true espionage case or not, despite the fact that U.S. authorities have charged Snowden with a criminal indictment asserting such. The goals of the FBIs counterintelligence work are to: Economic espionage costs the American economy hundreds of billions of dollars per year and puts our national security at risk. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Failure to report may result in disciplinary action. These types of activities represent an assault against core American values in a bid to stifle legitimate and necessary debate about China. For U.S. government leaders, I offer five specific recommendations: First, the Trump administration should expand the use of U.S. legal authorities to target companies that engage in and/or benefit from economic espionage: Both the Chinese government and individual Chinese companies need to understand that economic espionage carries costs, not just benefits. This report presents initial findings from analysis of 274 documented cases of Chinese worldwide espionage since the year 2000. 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. It has not been as easy for the United States to gain buy-in as some in Washington expected. 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. ISIS uses traditional media platforms as well as widespread social media campaigns to propagate its ideology. Our Team Account subscription service is for legal teams of four or more attorneys. Espionage and foreign interference pose a significant threat to our economic prosperity and national interests. Report, Trans-Pacific This distribution indicates a concerted effort to use all mechanisms of government and the economy to collection foreign information and technology. by a rival foreign government. emailStay Connected China has expanded its espionage efforts considerably over the last 20 years. 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. Southeast A recent Hoover Institution-Asia Society report offered a number of recommendations with respect to these operations that I endorse, such as promoting transparency and disclosure around Confucius Institutes and increasing the due diligence universities apply to grants and gifts from Chinese sources. Individuals used true names and open communications including emails, text messages, and phone calls. The category of traditional espionage can be seen at 18 percent; but is considerably lower when Taiwan is removed as a PRC intelligence target. The FITF is uniquely positioned to combat this threat. Victims of Chinas espionage efforts include major defense and aerospace companies, pharmaceutical firms, technology research companies, manufacturers, and universities. The Director of National Intelligence report, Foreign Economic Espionage in Cyberspace (2018) identifies key industries and technologies that are frequent targets of foreign 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. Foreign Intelligence Threats - Traditional Activity. Us, Write Contact Us| The French engaged in economic espionage throughout the 1980s. Beijing has stated its intention to advance industry, technology, and military capabilities to become a world leader by 2025. Sri Lankas default highlights the dangers of relying on international sovereign bonds with high interest rates to fund development. Join New York Law Journal now! conducting illegal covert or clandestine acts at the direction of, or for the benefit of, a foreign government or entity. On October 30, 2018 the U.S. Department of Justice announced the indictment of 10 Chinese intelligence officers and cyber hackers from the Ministry of State Security (MSS), Chinas main civilian espionage organization. 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. 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. No tradecraft, with parties using open communications and true names; Use of false names and/or third parties to transmit information and ship materials; Public and commercial encryption, hosting meetings in China to avoid detection; Tailor made devices or techniques, use of third countries, use of in-country cutouts to transmit information. Your article was successfully shared with the contacts you provided. Chinas defense industry is working to develop a comparable engine. But government tools must also be an important part of the U.S. government response. DoD Personnel should report to their CI Element, supporting MSCO or commander. Non-DoD civilians may face sanctions. 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 . These illicit activities pose a significant threat to national security and continue to be a priority and focus of the FBI. 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. The U.S. government has also worked to sharply limit the deployment of Chinese technology and equipment here in the U.S. that China could potentially use to facilitate its unconventional espionage in the years ahead. At a minimum, there is no indication that the CCP or Chinese government have taken any measures to impede the illegal activities (illegal in the United States) of their state corporations and citizens. But the reality is that China also engages in economic espionage using a wide range more traditional of techniques, many of which have been publicly identified over the past several years by U.S. corporate disclosures, researchers, published U.S. government reports, and Department of Justice prosecutions of suspected Chinese spies. 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. The Obama administration issued two Executive Orders, E.O. Of course, China may well prove unwilling to make the necessary concessions. The reason for this is because Snowden did not provide information he obtained to a foreign government. In closing, the work being done by the FBI is immeasurable; however, we cannot afford to be complacent. 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. Taking short trips. The United States charged the group with stealing airline engine technology from French and U.S. companies. We have also been confronting a surge in terrorist propaganda and training available via the Internet and social media. 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. The most persistent threats to the nation and to U.S. interests abroad are homegrown violent extremists (HVEs), domestic violent extremists, and foreign terrorist organizations (FTOs). Share sensitive information only on official, secure websites. : the practice of spying or using spies to obtain information about the plans and activities especially of a foreign government or a competing company industrial espionage Synonyms spying See all Synonyms & Antonyms in Thesaurus Example Sentences 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. DOJ used FARA to prosecute former Trump campaign chair Paul Manafort and Trump fundraiser Elliott Broidy, and in its unsuccessful prosecution of former Obama White House Counsel Gregory Craig for his alleged lobbying efforts on behalf of Ukraine stemming from his private practice legal work. Within the FBI, we are focused on the most dangerous malicious cyber activity: high-level intrusions by state-sponsored hackers, global organized crime syndicates, and other technically sophisticated and dangerous actors. conduct intelligence activities to acquire information about the United States, block or impair intelligence collection by the U.S. Government, influence United States policy, or disrupt systems and programs owned or operated by or within the United States. We face threats from state-sponsored hackers, hackers for hire, organized cyber syndicates, and terrorists. The alleged scheme ran from 2010 to 2015 and targeted turbofan engine technology developed through a U.S.-French partnership. 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. The government must also provide a description of the information sought and the places or facilities that will be searched. 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. Chinese theft of U.S. intellectual property has been one of the major legal and policy rationales for the Trump administrations Section 301 finding on China and subsequent imposition of tariffs on some $250 billion in Chinese goods imported into the United States. But R&D, and especially the kind of long-term, often basic research that the U.S. government is often more willing to fund than commercial enterprisesneeds to be sustained and expanded over time to achieve results. The intelligence officer may begin by accessing the corporate web page to identify candidates to target via emails or social engineering. Practice responses Practice good Operations security Law Offices of Gary Martin Hays & Associates Be observant 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. This has taken several forms. Private companies (and individuals) are most likely to employ no or minimal tradecraft. 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. The definition of 'foreign principal' (proposed section 90.2) includes a 'foreign government principal' and in the Bill as introduced, the definition of 'foreign government principal' (proposed section 90.3) included a 'foreign political organisation'. Unauthorized access to information systems. The 1986 Computer Fraud and Abuse Act (CFAA) makes it illegal for Americans to access a computer without authorization. Fourth, Congress should consider amendments to the Foreign Agents Registration Act (FARA) or other legislation to require better disclosure about Chinese operations in the United States. Subscribe 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. In addition to implementing sanctions on appropriate Chinese targets under these existing Executive Orders, the Trump administration and Congress should examine whether the sanctions authorities are legally adequate as currently drafted or whether they should be broadened to cover the full range of Chinese unconventional espionage threats. Get FBI email alerts Browsing international terrorist websites, Everyone is required to report all FIE threats Economic espionage, which is mainly conducted by private companies or individuals, makes up 23.5 percent of cases. Foreign officials reveal details they should not have known. Note as much as possible 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. 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. 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. China is unlikely to significantly curb its espionage efforts, as they provide a cost-efficient means to expand the economy, advance research and development, project military power, and meet Chinas stated goal to become a world power. Provide non-descript answers 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. The International Trade Commission (ITC) has authority to ban the import of products that are made with stolen U.S. IP, and in recent years U.S. companies have successfully petitioned the ITC to ban such products from entering the U.S. market. 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 An adversary uses technical countermeasures to block a previously undisclosed or classified U.S. intercept technology. Congress passed the CFAA to prohibit hacking, but the law also prohibits hacking back in which victims of cyber espionage and other hacking take active steps to interfere with the hackers computers. 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. 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. Lastly, Chinas espionage activities continue unabated despite a large number of arrests, public exposure, and most recently, U.S. trade sanctions. Just as our adversaries evolve, so, too, must the FBI. The Committee on Foreign Investment in the U.S. (CFIUS), an Executive Branch committee chaired by the Department of Treasury, was statutorily created to address potential risks to U.S. national security resulting from foreign acquisitions or mergers with U.S. companies. The group has been observed targeting healthcare, telecom, technology, and video game industries in 14 countries. He recently retired from a 34 year government career that included employment in the CIA, Department of State, and Defense Intelligence Agency. I left the Members with what I thought was an ominous warning: Do something about this now or youll be calling me back in 20 years screaming: My God, how did this happen? Well, they never called me back, but if recent FBI arrests are any indication, the problem has gotten worse a lot worse. The EEA covers both theft of trade secrets, which can benefit any outside entity that does not own the intellectual property, and economic espionage, which has additional burden of proof. Unexplained absences Customer Service| Trust your instincts Disgruntled employee attempting to gain access without need to know. Regardless of the method or activity, Foreign Intelligence Entities seek one thing: to learn more about the Department of Defense plans in order to exploit its information and impede its mission. As Australias military ties with the U.S. deepen, the Top End becomes even more vital to Australian security. We need to keep efforts that target Chinas espionage laser-focused on the small percentage of individuals and entities engaged in illicit behavior. The FBIs affidavit describes luring Xu to Belgium to illegally purchase General Electric commercial aviation technology. Practice Communications Security New Delhi has distanced itself from a controversial and unequal deal between Adani Power and the Bangladesh Power Development Board. In recent years we have broadly seen two types of Chinese espionage targeting U.S. colleges and universities. 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. 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. Site Map, Advertise| Do not use personal commercial computers or cell phones for sensitive or classified matters.. especially at a foreign establishment. 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.
