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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). Chinas defense industry is working to develop a comparable engine. 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. 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. 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. 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 There has also been a large rise in Section 337 investigations. 2023 Center for a New American Security (en-US). 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. 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. 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.. Finally, the investments we make at home to maintain Americas technological edge are ultimately going to be more important than the steps we take to stop Chinas theft of American IP. Based on an actual case, the video illustrates how one company was targeted by foreign actors and what the FBI did to help. Foreign Intelligence Threats Traditional FIE Activity includes: Foreign Intelligence Entities operating Many of the government mobile espionage efforts examined had roots in campaigns designed to spy on targets of interest of some of the nations covered in this report for political purposes. In late October, the U.S. Commerce Department put a Chinese semiconductor firm, Fujian Jinhua Integrated Circuit Company, on its entity list, which prohibits U.S. companies from selling Fujian Jinhua technology and products. These illicit activities pose a significant threat to national security and continue to be a priority and focus of the FBI. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. However, cases attributed to the Ministry of State Security show an astounding nine cases where case officers and recruited agents demonstrated no discernible tradecraft. 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 PJCIS noted 'ambiguity' in relation to this term and recommended the . What Joseph L. Rini Knows, Attorney Rachel Y. Marshall A Pillar of Strength for the Community, SpotDraft Raises $26 Million in Series A Funding for AI-Powered Legal Software, Access to the entire ALM network of websites, Unlimited access to the ALM suite of newsletters, Build custom alerts on any search topic of your choosing. Trust your instincts Individual victims of Chinese IP theft have begun to resort to legal measures to fight back against companies that steal their trade secrets. In 54 cases, entities used no tradecraft or substantive attempts to hide the espionage activity. 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. 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. An adversary conducts activities with precision that indicates prior knowledge. 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. Both options are priced the same. 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. Center for a New American Security (en-US), Constructing Regional Partnerships and Seizing Emerging Opportunities, General Mike Holmes, U.S. Air Force (Ret. Impact on the U.S. Economy. There is also a national construct in place (however redundant) to ensure intelligence information objectives are satisfied by collecting foreign information and technology. A recent report by cybersecurity firm Carbon Black found that 68 percent of surveyed cybersecurity incident response professionals reported that they were seeing cyberattacks from China and the half of all investigations focused on China and Russia. 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. Beware of being overheard Cyber espionage: Russian state-sponsored groups have been implicated in a range of cyber espionage activities against Ukraine, including stealing sensitive government and military data, intellectual property, and other confidential information. That said, I recommend that Congress carefully consider hacking back proposals that would enable U.S. companies to take a broader range of active measures to defend themselves against cyber espionage and other cyber attacks. 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. DoD personnel who suspect a coworker of possible espionage should, Report directly to your CI or Security Office, Cyber vulnerabilities to DoD Systems may include, Disgruntled or Co-opted employee Store information in Secure Facilites The bottom line is that if there is information out there that China thinks is of value, the odds are that China has or will try to steal it. The target is now hooked. Foreign Intelligence Agency-What do they want? Us, Write This Act is the National Security Legislation Amendment (Espionage and Foreign Interference) Act 2018. 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. Familial ties, or close associations, with terrorist or their supporters The Director of National Intelligence report, Foreign Economic Espionage in Cyberspace (2018) identifies key industries and technologies that are frequent targets of foreign espionage. Additionally, the DSN shall instruct NOAA staff and employees to report suspicious activities involving the foreign national to the DSN who, in turn, shall report them to the servicing security office immediately. 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. 4 Impact of Cyber Espionage. 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. 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. Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms. Disgruntled 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. The text in bold (see Figure 4) reflects multiple, concerted attempts by China to secure specific U.S. critical technologies. This initiative is a welcome step and I commend the Justice Department and the National Security Division for launching it. Lastly, in 27 cases, roughly 9 percent of the total, case officers and/or agents displayed a more sophisticated level of tradecraft. Testimony before the Senate Judiciary Committee, By Other Chinese government elements that collect intelligence (information) include the PLA Political Department Liaison Office (targeted against Taiwan), United Front Work Department, and the Ministry of Industry and Information Technology. Congress enacted the Espionage Act on June 15, 1917, two months after the U.S. entered World War I, to stifle dissent of U.S. involvement in the war. 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. The only notable area in which China has shown minimal advancement has been in applying sophisticated espionage tradecraft. Which of the following is an example of an anomaly? As part of a nationwide campaign to raise awareness of the growing economic espionage threat, the FBI has released a short video, "The Company Man: Protecting Americas Secrets." 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. Amid great power competition, life in the China-Russia borderlands reveals the paradoxes underpinning the Beijing-Moscow friendship. 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 . Any other statement in column 2 has effect according to its terms. Foreign Intelligence Threats Traditional FIE Activity includes: Foreign Intelligence Entities operating Is there an need to share? 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 . Espionage operations have expanded dramatically, increasing in the number of operations, personnel, government and SOEs, and foreign targets sets. Hostile actors conducting cyber espionage can target the government, military, business and individuals. U.S. Federal law enforcement office In intelligence terminology, information objectives identify the specific information (or technology) that is tasked for collection. But government tools must also be an important part of the U.S. government response. 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. Espionage. Advertisement. More deaths were caused by domestic violent extremists than international terrorists in recent years. The Espionage Act of 1917 is a United States federal law enacted on June 15, 1917, shortly after the United States entered World War I. Of course, China is neither the first nor the only foreign government to use its intelligence services to promote commercial interests. Together, they make up 54 percent of cases. 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. Victims of Chinas espionage efforts include major defense and aerospace companies, pharmaceutical firms, technology research companies, manufacturers, and universities. Chinese agents have also physically broken in to U.S. corporate offices. He recently retired from a 34 year government career that included employment in the CIA, Department of State, and Defense Intelligence Agency. Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific. Reporting threats to your Facility Security Officer or Supervisor. Contact Us| Foreign power activity or knowledge which is inconsistent with the expected norm that suggests that foreign powers have knowledge of U.S. National Security. Emily Kilcrease & Michael Frazer. Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives. Several high-level conclusions can be drawn from the cases representing the last 20 years of Chinese espionage operations. 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. 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. 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. 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." China is drawing lessons from Russias invasion of Ukraine. In addition, the same erratic performance by recruited agents illustrates nonstandardized agent training, protocols, and practices. An official website of the United States government. The reason for this is because Snowden did not provide information he obtained to a foreign government. Responding to Chinas unconventional espionage threat will require a whole-of-society approach, not just a whole-of-government approach. They include foreign states, criminals, "hacktivist" groups and terrorists.