INTELLIGENCE AND THE CHINESE COMMUNIST PARTY
REPORT TO CONGRESS: MILITARY AND SECURITY DEVELOPMENTS INVOLVING THE
PEOPLE'S REPUBLIC OF CHINA 2011
The Chinese Communist Party(CCP)
is the most prolific group at stealing industrial technology from
American and European companies. This is done through a number of
privately held corporations, groups and associations operating in China and the United States,
influenced by or controlled by the CCP; directly or indirectly.
For this posting, the CCP is mentioned for their adept theft of technology, even
if private actors are in play. If Chinese
nationals are mentioned, they are referred to agents of the CCP. Obviously, not
all Chinese nationals like or work for the CCP. Many Chinese
fear the CCP, even when living in the United States.
First and foremost, the CCP
seeks US and European technology at any cost. They don't just seek
to sell us toys, TV's, electronics and food. They seek to steal
technology anywhere and anyhow they can get it. Most of this theft
occurs at the doorstep of American and European companies. I
characterize the CCP as the "BORG" in the movie StarTrek-- "You will be
assimilated." They seek to obtain information and technology,
and to share it amongst
themselves and their affiliated groups. What is gained by one
group is shared among all within their network. What is shared by all may work to the
advantage of a group within the CCP, affiliates, financed businesses and
others. These groups may involve
corporations, associations, non-profits, cultural centers, and
individuals working in concert within the United States, Europe and
China; in various forms.
For the most part, the CCP
operates within the borders of the United States without detection or
are several techniques used by the CCP to steal industrial and state
Honey-pot(*Honey-trap"): Sexual bribery leaves no paper-trail.
Business executives, with access to technological insight are
susceptible due to the following issues:
Divorce, or threat of
divorce, is used to control the target. Extortion and blackmail is
often used to gain cooperation, and to keep the target silenced. The targeted executive
or engineer is pressured to reveal
company secrets to avoid an embarrassing and expensive divorce.
Then the divulged secrets are used to keep the target silent for
fear of divorce or loss of employment.
Executives with a heavy
travel schedule often find themselves in need of affection.
Affairs are common. This is an opportunity to expose the
Extended relationships with
Chinese girlfriends, working for the CCP, often lead to
introductions to others within the social circle of the executive.
A map is created of the executives social life, their respective
access to technology, and to introduce additional operators into the
group. Those operators are usually introduced as interns,
exchange students, and company visits by Chinese groups. These
groups don't necessarily involve a honey-pot, but may introduce a
honey-pot in the near future.
The executive or engineer
is often in denial that industrial espionage is taking place.
The executive perceives himself as "too smart" to be taken advantage
of by a sweet and naive looking young Chinese female.
Once the espionage is
detected, the executive often will hide the leak to avoid exposure
to prevent damage to his family or career. This means
that the opportunity for damage control is lost due to the
obfuscation of the executive.
Computer hackers and spy
software are often used to detect the sexual interests, desires and
fantasies of the targeted executive. Often times, interest in sado-masochism and fetish related activities, and revelation
thereof, often translate to a specifically targeted campaign to
seduce the target along the same interests. Pictures and
are often taken of those acts are used to black-mail the target to divulge secrets.
As the sexual interests increase in their "taboo" levels, this
translates into increased operational control over the targeted executive.
For example, an executive's interest in pedophilia is more powerful
leverage, over the target, than a sexual interest in S&M.
The illicitness of the activity brings forth enhanced control due to
possible prosecution, embarrassment, and loss of employment.
Human trafficking and third party "massage parlors" are often
connected to the CCP activities involving sexual bribery, blackmail
and extortion. Hidden cameras are a staple in the blackmail
crime. Many times, the crime of blackmail will eclipse the
sexual crimes of the target, the jeopardizing of national security
matters, and complete manipulation of a system of controls to
prevent unauthorized disclosures.
The target's sexual habits
and preferences are kept on file for future use. The target is
often re-targeted within months. As often happens, males simply
forget previous transgressions and are pliable for repeated seduction,
manipulation and control. Males, in particularly, are
considered stupid. This is true. They know better and yet, are
so careless, that if confounds the imagination.
An executive's Facebook
page is often used to determine social class, activities and a list
persons to notify as part of a blackmail campaign. A Facebook
page may reveal a prospective target's social class, position in a
hierarchy, level of compensation, marital status, and other
concerns. The pictures on Facebook, and other sources,
commonly reveal the target's geo-positional location, and where he
is likely found; and where to find his children.
2. Companies are invited
into a partnership with a Chinese company. This requires that the
US Company train the Chinese engineers. Then the Chinese company
will build a competing product line often under another company name.
This is referred to as the "mushroom factory."
3. Several US companies
are invited to bid on a project. They are repeatedly invited to
increase their technological offering, by revealing secrets. This
is done with several competing US companies so they reveal as many
secrets as possible. Then once the Chinese have enough stolen
technology, they will cut off the American companies and build their own
product line. This is known as the "Lamprey Technique."
4. Chinese interns, as
agents of CCP companies, work within American companies and steal
5. The CCP encourages
that the United States borrow as much money as possible; indebting the
company to the Chinese. Bill Clinton released classified nuclear
secrets involving the submarine launched Polaris missile. The
Monica Lewinsky scandal was used to divert attention from this
revelation. In fact, the released secrets of space technology was
enough for China to modernize their nuclear arsenal.
6. The CCP also
penetrates the United States using illegal money into US Elections
directly from the Chinese Army. An example of this was when the
Chinese Army donated to the DNC, "Chinagate", involving John Huang and
Johnny Chung. Bill Clinton armed the Chinese with US nuclear
technology. Many of those modern missiles are now pointed at the
United States today.
7. The CCP uses Strawman
entities to harass people, groups and others who are contrary to the
agenda of the CCP. For example, the CCP often utilizes social
groups to exclude Falun Gong practitioners from parades in the United
States, and to marginalize any Chinese group contrary to the interests
of the CCP. Most Americans aren't aware of the CCP's influence and
operations within the borders of the United States. In fact, most
Americans, that consider the CCP, may envision a hollywood type invasion in the form of a "Red Dawn"
type drama. On the contrary, the economic invasion has already
occurred. It's here in the form of CCP companies, associations,
and funded groups who collect data, intelligence and industrial secrets
to make America weaker, and to strengthen the CCP's ability to modernize
the Chinese military, and influence. It's a slow and gradual, and
creeping influence unlike an invasion of force. Rather, the impact
is insidious because of the stealth, silence, and deception in the great
8. The CCP loans money to
Chinese companies, and those companies are obligated to share
information. As such, most Chinese companies are agents of the CCP
in one form or another. Never forget this relationship.
Money, sex, financing, technology and information usually flow along the
same channels, paths and associations.
9. American companies are
known for their need for immediate gratification in terms of short term
gains. The leadership of American companies lack responsibility to
their consumers, their stockholders and their rank and file. They
are primarily concerned with themselves. This leads to gaping
holes in security, loss of secrets and loss of business.
CASE IN POINT: http://www.businessweek.com/articles/2013-02-14/a-chinese-hackers-identity-unmasked
The CCP is a well-organized and
funded, and cunning adversary to the keeping of American and European
technological secrets. Do not underestimate them. So far,
they are extremely effective. The Americans and the Europeans are
asleep at the technological wheel. For the most part, the Americans seek to
close the door after the chickens sprung the coop.
The retaining of our
technological secrets are more important than ever before. In
the post 9/11 world, the United States has raised barriers to
immigrants through the increased filing fees and in scrutiny of immigration
visas. This means that international students face heightened
difficulty in studying and staying in the United States. These
students often become the entrepreneurs of tomorrow. Most of
the entrepreneurs in the Silicon Valley are Chinese or from India.
Discriminating against Chinese nationals jeopardizes American
economic and political security. Considering that US students
lack advancement in Science and Mathematics, its critical our nation
attracts students in needed disciplines. A knee-jerk reaction
in the unfair restriction of Chinese nationals immigrating to the
United States may lead to unintended and negative consequences. It's
important to welcome Chinese nationals to study and work in the
United States, without willingly or negligently releasing industrial
technology to China.
We must remind ourselves that
the CCP is an adversary to be respected, and not underestimated.
The purpose of this article is
to illuminate the related issues to industrial espionage conducted by
the CCP. This article is no reflection on the Chinese people.
On the contrary, the American railroad and road construction advanced
greatly on the shoulders of hard-working Chinese laborers. They
endured much hardship, dangerous work conditions and unjust
discrimination at the hands of American business owners. They
served our military and started countless legitimate businesses.
The Chinese contributed greatly to American culture and everyday life. Their family
cohesiveness and teamwork are examples of their strength and unity.
There's much to learn from the Chinese. Please keep in mind to remain an Equal Opportunity Employer
to all employees of Chinese descent.
Chinese General Redux: Chi Haotian's Speech and Bio