China’s Intellectual Property Appropriation, Cyber Espionage, and Infiltration in the U.S

Photo courtesy of the Department of Homeland Security.

Earlier this month, the FBI and the Cybersecurity and Infrastructure Security Agency (CISA) issued a joint statement exposing a major cyber espionage campaign linked to actors affiliated with the People’s Republic of China (PRC).

The investigation revealed that PRC-affiliated operatives had compromised networks within multiple telecommunications companies. These breaches allowed them to steal customer call data, intercept private communications—primarily of individuals involved in government or political activities—and copy sensitive information related to U.S. law enforcement requests without authorization.

On October 17, the U.S. House Committee on Homeland Security released a detailed report titled the “China Threat Snapshot,” outlining the significant national security threats posed by the Chinese Communist Party (CCP). The report highlights alarming instances of espionage and transnational repression linked to the CCP, along with legislative efforts to counter these threats.

Key findings include over 55 documented cases of CCP-related espionage across 20 U.S. states between February 2021 and August 2024. These incidents include trade secret theft, obstruction of justice, transnational repression, and the illicit transmission of sensitive military information.

According to the FBI, 80% of economic espionage prosecutions are tied to activities benefiting China, and 60% of trade secret theft cases have CCP connections. FBI Director Christopher Wray testified that the agency launches a new investigation into CCP intelligence operations every 12 hours.

Committee Chairman Mark Green stressed that the issue lies with the CCP’s authoritarian regime, not the Chinese people. He highlighted the CCP’s tactics of spying on defectors, intimidating American citizens, censoring dissent, and undermining democratic institutions. The report calls for urgent measures to safeguard U.S. sovereignty and counter the CCP’s escalating aggression.

Legislative Efforts to Address CCP Threats

House Republicans are prioritizing several measures to combat Chinese espionage, protect U.S. intellectual property, and enhance national security. Key legislative initiatives include:

  1. The Protect America’s Innovation and Economic Security from CCP Act:
    This bill reinstates and renames the former “China Initiative” as the “CCP Initiative.” It aims to counter espionage, protect U.S. trade secrets, and shield academic institutions from CCP influence.
  2. The DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act:
    Recognizing the role of Confucius Institutes in spreading propaganda and infiltrating American universities, this act seeks to restrict funding to institutions maintaining ties with Chinese entities, ensuring academic integrity and reducing CCP influence in U.S. education.
  3. The End Chinese Dominance of Electric Vehicles in America Act:
    This legislation addresses Chinese dominance in the electric vehicle (EV) market by closing loopholes that allow Chinese entities to exploit U.S. tax credits. The goal is to ensure that American taxpayer dollars do not benefit foreign adversaries and to promote domestic EV manufacturing.

Economic Espionage and Intellectual Property Theft

The Chinese Communist Party has long engaged in the theft of U.S. intellectual property, costing American taxpayers an estimated $500 billion annually. The CCP’s actions have repeatedly undermined U.S. innovation, trade, and economic security.

Despite the closure of many Confucius Institutes in recent years, some U.S. schools continue to maintain relationships with Chinese entities. House Republicans are taking steps to eliminate these lingering ties and further secure American academic institutions.

By targeting Chinese influence in critical areas like education, technology, and manufacturing, these efforts represent a broader push to counter the CCP’s attempts to weaken U.S. sovereignty and economic independence.

A growing concern in the United States is the increasing foreign ownership of U.S. farmland, particularly by Chinese companies. Over the past decade, Chinese acquisition of American farmland has risen sharply, sparking alarm over its implications for both food and national security.

To address this issue, the Protecting American Agriculture from Foreign Adversaries Act has been introduced. This legislation proposes expanding the scope of the Committee on Foreign Investment in the United States (CFIUS) to include agricultural transactions. The goal is to prevent foreign adversaries from acquiring land near military installations or posing a threat to the U.S. food supply.

This push aligns with President Trump’s hawkish cabinet appointments, signaling a firm stance on countering China. Key figures in this effort include:

  • Robert Lighthizer (nominated for a leading trade policy role): As the architect of the U.S.-China trade war during Trump’s first term, Lighthizer is expected to continue targeting China’s unfair economic practices and defending American industries.
  • Senator Marco Rubio (nominated for Secretary of State): A prominent critic of the Chinese Communist Party (CCP), Rubio has co-authored legislation to revoke China’s Permanent Normal Trade Relations (PNTR) status, signaling a tougher diplomatic approach.
  • Michael Pillsbury (National Security Advisor pick): A staunch China hawk, Pillsbury has long advocated for strategic decoupling from China and applying heightened pressure on Beijing over trade, security, and human rights issues.

Together, these appointments reflect a unified strategy to confront China’s growing influence and safeguard U.S. interests.

These efforts are part of a broader Republican commitment to:

  • Protecting U.S. intellectual property and national sovereignty.
  • Preventing misuse of taxpayer funds.
  • Strengthening national security.

By addressing critical issues like farmland ownership, trade imbalances, and strategic security, these initiatives aim to ensure that U.S. policies prioritize the interests of its citizens while countering foreign adversaries like China.

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