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Stock Lobster

12/03/07 10:52 PM

#217649 RE: Stock Lobster #217646

Heritage.org/05: Legion of Amateurs: How China Spies

by Peter Brookes
May 31, 2005

"One good spy is worth 10,000 soldiers."
— Sun Tzu, ancient Chinese military strategist


Islamic terrorism is still the greatest threat to our national security, but Chinese espionage against the United States is gaining ground. The FBI says China will be America's greatest counterintelligence problem during the next 10 to 15 years.

China has seven permanent diplomatic missions in the States, staffed with intelligence personnel. But the FBI believes that as many as 3,500 Chinese "front companies" are involved in espionage for the People's Republic of China (PRC) as well.

And with the bureau focused on terrorism, the China challenge is overwhelming the FBI's counterintelligence capabilities.

The PRC has the world's third-largest intelligence apparatus (after the United States and Russia), and it's targeting America's governmental, military and high technology secrets.

China's goal is to replace the U.S. as the preeminent power in the Pacific — even globally. It's using every method possible, including espionage, to improve its political, economic and, especially, military might.

A senior FBI official said recently, "China is trying to develop a military that can compete with the U.S., and they are willing to steal to get it."

One example: Last fall in Wisconsin, a Chinese-American couple was arrested for selling $500,000 worth of computer parts to China for enhancing its missile systems. Even worse: The PRC recently fielded a new cruise missile strikingly similar to the advanced American "Tomahawk."

Chances that the similarities are a coincidence? Slim to none.

Naturally, America's hi-tech centers are a potential gold mine for Chinese spies. The FBI claims that Chinese espionage cases are rising 20 to 30 percent every year in Silicon Valley alone.

But don't think James Bond. It's all much more methodical — and mundane.

Chinese intelligence collection uses numerous low-level spies to painstakingly collect one small piece of information at a time until the intelligence question is answered. Kind of like building a beach one grain of sand at a time.

For instance, it took China 20 years to swipe American nuclear warhead designs from U.S. national nuclear weapons labs, according to a 1999 congressional committee

China also doesn't rely on "professional" spies stationed overseas to the extent other major intel services do. Instead, it uses low-profile civilians to collect information.

The PRC's Ministry of State Security (MSS) often co-opts Chinese travelers, especially businesspeople, scientists and academics, to gather intel or purchase technology while they're in America.

The MSS especially prizes overseas Chinese students, hi-tech workers and researchers living in the U.S. because of their access to sensitive technology and research/development that Beijing can use for civilian and military purposes.

Of course, not all the 150,000 Chinese students and researchers now in America, or the 25,000 official PRC delegates — or the 300,000 victors — are spies, but they do provide the MSS with a large pool of potential recruits for collecting secrets on U.S. targets of interest.

The MSS also recruits in the Chinese-American community, including sleeper agents. Developing personal relationships, invoking a common heritage, threatening alienation or offering access to power are persuasive in a culture where "guanxi" (connections) are important.

An equal opportunity employer, the MSS will, of course, "hire" sympathetic Americans — or any ethnicity — that will further China's cause, including scholars, journalists and diplomats, among others.

The United States isn't the only country with a Chinese spy problem. The MSS runs an espionage network against scientific labs and large research universities in several European countries, including the U.K., France, the Netherlands and Germany. In Asia, Taiwan recently arrested 17 of its military officers for working for the PRC.

China's spies and their methods aren't the most expedient or efficient in spy-dom, but the tenacity and quantity of Chinese spooks are proving effective. Unfortunately, the openness of American society provides easy access to sensitive information and technology.

Sun Tzu said that intelligence is critical to success on the battlefield. It applies to the political and economic "battlefield," too. Accordingly, China is investing heavily in espionage to match its geopolitical aspirations.

China will prove to be America's greatest foreign-policy challenge in this century. In recent months, the Pentagon, CIA, Treasury and Congress have voiced concerns about China's rapidly expanding political, economic and military clout. These are words to the wise.

We certainly can't take our eye off terrorist threats against the homeland, but neither can we risk not meeting the growing Chinese espionage menace. Both are major threats to our national security and merit significant resources and attention.

Peter Brookes is a Heritage Foundation senior fellow.

First appeared in the New York Post



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Stock Lobster

12/03/07 10:56 PM

#217650 RE: Stock Lobster #217646

CNN: FBI spy chief asks private sector for help

Szady highlights threat of Chinese espionage
Friday, February 11, 2005 Posted: 0353 GMT (1153 HKT)

Russia, Iran, Cuba, North Korea and China are said to be engaging in espionage against the United States.

WASHINGTON (CNN) -- The FBI's leader in spy catching used a rare public appearance Thursday to ask American business to help stop the theft of U.S. business and technology secrets.

FBI Assistant Director for Counterintelligence David Szady, cited Russia, Iran, Cuba and North Korea among countries he said engage in espionage against the United States, but he focused heavily on activities by Chinese.

"There are 150,000 students from China. Some of those are sent here to work their way up into the corporations," Szady said. There are about 300,000 Chinese visitors annually, and 15,000 Chinese delegations touring the United States every year, 3,500 of them in the New York area alone, he said.

Szady, one of the speakers at the three-day National Intelligence Conference and Exposition in Arlington, Virginia, said it is important for companies and institutions to know with whom they are working.

He estimated that about 3,000 false-front Chinese companies operate in the United States, and urged private-sector employers to "partner up" with FBI agents to help protect national security.

"The economic viability of the United States we now look at as a counterintelligence problem," he said.

"We now see almost all of the adversaries, the Chinese being a classic example, of using students, delegations, researchers, visitors ... and false-front companies," Szady said.

Another senior FBI official, who spoke anonymously, was more blunt.

"The Chinese are stealing us blind," he said. "The 10-year technological advantage we had is vanishing."

The FBI has been successful, he said, in making some arrests.

"We took down some cases in Milwaukee, Trenton, New Jersey, and Palo Alto. These were false-front companies that were stealing technologies for the Chinese. Every person arrested was a student. They studied here, got their PhD here, and went to work for places like Lockheed, Raytheon, and Northrop."

Szady said spies do not limit espionage activities to large cities, and the Chinese presence is pervasive. "Even as we increase our numbers of agents, we can't possibly totally stop it," he said.

"If you have a little national asset, whatever it is ... they want that little thing that you produce," he said. "And they need it to make their missile fly straight or so they can compete in electronic warfare, and you have that key component."


http://edition.cnn.com/2005/US/02/10/fbi.espionage/index.html
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Stock Lobster

12/03/07 10:57 PM

#217651 RE: Stock Lobster #217646

CNN: FBI spy chief asks private sector for help

Szady highlights threat of Chinese espionage
Friday, February 11, 2005 Posted: 0353 GMT (1153 HKT)

Russia, Iran, Cuba, North Korea and China are said to be engaging in espionage against the United States.

WASHINGTON (CNN) -- The FBI's leader in spy catching used a rare public appearance Thursday to ask American business to help stop the theft of U.S. business and technology secrets.

FBI Assistant Director for Counterintelligence David Szady, cited Russia, Iran, Cuba and North Korea among countries he said engage in espionage against the United States, but he focused heavily on activities by Chinese.

"There are 150,000 students from China. Some of those are sent here to work their way up into the corporations," Szady said. There are about 300,000 Chinese visitors annually, and 15,000 Chinese delegations touring the United States every year, 3,500 of them in the New York area alone, he said.

Szady, one of the speakers at the three-day National Intelligence Conference and Exposition in Arlington, Virginia, said it is important for companies and institutions to know with whom they are working.

He estimated that about 3,000 false-front Chinese companies operate in the United States, and urged private-sector employers to "partner up" with FBI agents to help protect national security.

"The economic viability of the United States we now look at as a counterintelligence problem," he said.

"We now see almost all of the adversaries, the Chinese being a classic example, of using students, delegations, researchers, visitors ... and false-front companies," Szady said.

Another senior FBI official, who spoke anonymously, was more blunt.

"The Chinese are stealing us blind," he said. "The 10-year technological advantage we had is vanishing."

The FBI has been successful, he said, in making some arrests.

"We took down some cases in Milwaukee, Trenton, New Jersey, and Palo Alto. These were false-front companies that were stealing technologies for the Chinese. Every person arrested was a student. They studied here, got their PhD here, and went to work for places like Lockheed, Raytheon, and Northrop."

Szady said spies do not limit espionage activities to large cities, and the Chinese presence is pervasive. "Even as we increase our numbers of agents, we can't possibly totally stop it," he said.

"If you have a little national asset, whatever it is ... they want that little thing that you produce," he said. "And they need it to make their missile fly straight or so they can compete in electronic warfare, and you have that key component."

http://edition.cnn.com/2005/US/02/10/fbi.espionage/index.html

http://edition.cnn.com/2005/US/02/10/fbi.espionage/index.html
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Lindy

12/03/07 11:15 PM

#217652 RE: Stock Lobster #217646

they've never delved so far into the security issues and think they may have a problem with adversaries making their fighter parts? ROFL.
in the other article Boeing and dod were arguing about who should examine the software, because it was too tedious, and all the highly paid employees can't pitch in? lol. lazy. things seem to have changed.