In Depth

Nation States' Espionage and Counterespionage

An overview of the 2007 Global Economic Espionage Landscape

By Christopher Burgess

The U.S. government has also made some recommendations on how to defend against the loss of intellectual property. Among these were these findings of the US-China Economic and Security Review Commission:

• "Ensuring adequate support for U.S. export control enforcement and counterintelligence efforts: In order to slow or stop the outflow of protected U.S. technologies and manufacturing expertise to China, the Commission recommends that Congress assess the adequacy of and, if needed, provide additional funding for U.S. export control enforcement and counterintelligence efforts, specifically those tasked with detecting and preventing illicit technology transfers to China and Chinese state-sponsored industrial espionage operations."
• "Ensuring adequate support for protecting critical American computer networks and data: The Commission recommends that Congress assess the adequacy of and, if needed, provide additional funding for military, intelligence, and homeland security programs that monitor and protect critical American computer networks and sensitive information, specifically those tasked with protecting networks from damage caused by cyber attacks."
• "Addressing weaknesses in U.S. intelligence capabilities focused on China's military: The Commission recommends that Congress instruct the director of national intelligence to conduct a full assessment of U.S. intelligence capabilities vis-à-vis the military of the People's Republic of China, and identify strategies for addressing any U.S. weaknesses that may be discovered as part of the assessment."
• "Assessing potential Chinese military applications of R&D conducted in China by U.S. companies: The Commission recommends that Congress direct the U.S. Department of Defense to evaluate, and, in its Annual Report to Congress on the Military Power of the People's Republic of China, to report on, potential Chinese military applications of R&D conducted in China by U.S. companies."

These findings are based on the commission's understanding of how China has developed a growing reliance on industrial espionage. The report notes, "China continues to supplement its acquisition of new technologies from commercial transfers and direct production partnerships with a large-scale industrial espionage campaign." The commission also notes, "Chinese espionage against the U.S. military and American business continues to outpace the overwhelmed U.S. counterintelligence community. Critical American secrets and proprietary technologies are being transferred to the PLA and Chinese state-owned companies."

Defending U.S. Intellectual Property: In September 2007, Mahlik, said, "In the past, we've always been reactive to this type of scenario [espionage] and essentially showed up after the fact to bring resources to bear on this type of crime, but we want to be more proactive to help businesses and academic institutions protect themselves before an incident occurs."

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• Industrial Espionage: Secrets Stolen, Fortunes Lost
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• Corporate Spying: Snooping, by Hook or by Crook
• Counterfeiting: Faked in China