America has to respond with a united front to China’s massive economic warfare

China’s systematic and orchestrated campaign of intellectual property theft and technological advancement poses an unprecedented threat to America’s national security, demanding a comprehensive and urgent response. The United States, once undisputed in its technological prowess, now grapples with threats emerging from the Chinese Communist Party (CCP) agenda that are both insidious and far-reaching in terms of the threats to our national security.  

As the world enters an era defined by new forms of power, emerging technologies such as artificial intelligence (AI), quantum computing and hypersonic weapons are at the forefront of U.S.-China competition. The National Security Commission on Artificial Intelligence warned as far back as 2021 that, “China possesses the might, talent, and ambition to surpass the United States as the world’s leader in AI in the next decade,” underscoring the urgency of this technological race. 

This danger stems not only from China’s relentless pursuit of American know-how and data — evidenced by high-profile cases such as the indictment of Chinese nationals for cyber-espionage against U.S. companies — but also from the uncomfortable reality that America has, to a significant extent, enabled this IP larceny through investments and insufficient controls. The consequences of such actions cannot be overstated; they reverberate through every facet of national security and economic competitiveness. 

While the U.S. has been entangled in protracted conflicts in the Middle East, the CCP has pursued a “whole-of-society” approach to national rejuvenation. The 2017 National Intelligence Law requires all Chinese organizations and citizens to support, assist and cooperate with state intelligence work, raising concerns about the security of joint ventures and technology transfers.

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Freshmen take part in a military training at Southeast University on Oct. 22, 2021, in Nanjing, Jiangsu Province of China. (Yang Bo/China News Service via Getty Images)

China’s economic and military rise since joining the World Trade Organization in late 2001 is arguably unprecedented in history, in terms of speed, scale and material gain. That membership was intended to incorporate China into the international economic order. China has abused its WTO membership for its own self-interest at the expense of the global international order.  

When Xi Jinping took the reins of the CCP in 2012, the comprehensive plan to steal America’s commercial “crown jewels” accelerated. The Ministry of State Security (MSS) — China’s version of the FBI, CIA, NSA and Cybercommand all in one — has doubled in size in the last 10 years. Just as planned by the CCP’s high command and enabled by the MSS, China would transform from an economic backwater to the economic superpower that it is today. 

For the PRC/CCP, every facet of American innovation is a target. From advanced aerospace engineering to breakthroughs in biotechnology, the scope of espionage is staggering. Intellectual property theft not only undermines American businesses but also erodes the foundations of our future military and economic strength.

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In many ways, this has been a unilateral economic war waged by China against the U.S. and the West more generally.  If the U.S. fails to recognize and address the magnitude of this threat, it risks ceding its leadership position in the technologies that will shape the coming century. 

Beijing has played off the naïveté of the leaders in Washington and Brussels, weaponizing their strengths — a liberal and globalized economic order — in a judo-like manner to its own advantage. While direct confrontation in a military sense is not inevitable, this commercial war, one fought largely by unconventional means, will determine the outcome of any future military confrontation between the United States and China. 

The challenge for the U.S. in facing this threat is that its traditionally structured intelligence, security and judicial apparatuses are largely ill-suited to combating this unique and modern threat.

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The CIA and FBI were largely designed to access government-held secrets or counter an official Chinese or Russian intelligence officer trying to recruit a government official. How do America’s intelligence and security services approach a partially owned Chinese firm leveraging its commercial access to steal proprietary secrets? What do U.S. federal prosecutors need to charge and convict those conducting commercial espionage? 

America stands at a crossroads. The traditional playbook — rooted in Cold War paradigms and focused on conventional espionage — no longer suffices in the face of this asymmetric economic warfare. The United States must modernize its strategies, and not only upgrade intelligence capabilities, but also forge stronger alliances with innovative companies and academic institutions. Defensive measures must now extend beyond government agencies, reaching into the very heart of America’s entrepreneurial and academic fabric.

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David R. Shedd’s new book, “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” warns America of Chinese intellectual property theft.

The United States must strengthen its defenses against intellectual property theft, as recommended by the Department of Justice’s China Initiative, which has led to dozens of prosecutions for trade secret theft and economic espionage. Additionally, the National Science Foundation has called for increased investment in research and development and the establishment of secure research environments to protect sensitive innovations. 

America’s legal and regulatory frameworks are also lacking or are insufficiently enforced, often making the prosecution of trade theft cases difficult even when the evidence is overwhelming. As for America’s private sector, Secretary of State Marco Rubio succinctly captured the issue when he stated American companies are committing, in effect, “corporate suicide” by not fully considering the long-term consequences of fueling Chinese economic superiority.

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What is required is a renewed sense of urgency alongside of counter-heist “whole-of-society” response to China’s unrelenting economic predatory actions. The United States must defend its intellectual capital with the same tenacity it applies to its physical security. An integrated approach — combining updated legislation, robust law enforcement, international cooperation and a reinvigorated commitment to research leadership — offers the best path forward. 

Finally, economic security must be elevated within the administration to be at the same priority as traditional national security, going back to the era of the Cold War when we faced the Soviet Union as the principal adversary in the world. Only then can America hope to secure its place atop the global technological hierarchy and safeguard its national security against a PRC/CCP intent on undermining America’s strength through subterfuge and theft.