PRC RC T HRE HREATS T O A CADEMIA 1) Theft of trade secrets, - - PowerPoint PPT Presentation

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PRC RC T HRE HREATS T O A CADEMIA 1) Theft of trade secrets, - - PowerPoint PPT Presentation

T HE C HINA I NITIATIVE T HE HE D EPARTMEN OF J USTICE R ESPONDS ENT OF TO E CONOMI MIC A GGRESSI THE C HINESE SE G OVERNMEN TO SSION BY TH ENT AND O THER ER N ATIONAL S ECURITY T HREATS AN Adam S. Hickey PRC RC T HRE HREATS T O A CADEMIA 1)


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SLIDE 1

THE CHINA INITIATIVE

THE

HE DEPARTMEN ENT OF OF JUSTICE RESPONDS TO TO ECONOMI MIC AGGRESSI SSION BY TH THE CHINESE SE GOVERNMEN ENT AN AND OTHER ER NATIONAL SECURITY THREATS

Adam S. Hickey

slide-2
SLIDE 2

PRC RC THRE

HREATS TO ACADEMIA

1) Theft of trade secrets, sensitive (controlled) technology, and other intellectual property 2) Influence that compromises the free and open exchange of ideas

slide-3
SLIDE 3

MAD

ADE IN IN CHIN INA 2025

2025: “A R ROADM

ADMAP AP TO THEFT”

U.S. Department of Justice, National Security Division

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SLIDE 4

ECONOMIC ESPIONAGE IN THE U.S.

  • About 80

80% of all federal eco economic c es espio ionage ge prosecutions have alleged conduct that would ben enef efit the e Chin ines ese e state.

  • About 60

60% % of trade de se secre ret th theft cases have had some nexu xus to China. na.

4

slide-5
SLIDE 5

WHAT

AT HAS AS CHI HINA STOLE OLEN?

slide-6
SLIDE 6

THE

HE PRC

RC’S TECHNI

NIQUE QUES

Courtesy of the Office of the Director of National Intelligence

6

slide-7
SLIDE 7

TALENT

NT PROGRAMS

  • Started by PRC government in 2008.
  • The PRC government funds above-market

salaries, advanced research facilities, and bestows titles and prestige to lure experts to China.

  • Approximately 7,000 Chinese scientists have returned to China under

the program.

  • While association with a Talent Program is not illegal, it can create

incentives to steal, violate export controls, or (at a minimum) a conflict

  • f interest.
  • Ask employees, partners, consultants if they are participating.

7

slide-8
SLIDE 8

U.S.

  • S. V. ZHOU

HOU, CHE HEN

8

  • Defendant spouses were employed as resear

earcher hers at Nationwide Children’s Hospital (NCH) for approximately ten years.

  • Defendants researched exosome isolation, which plays a key role in the research,

identification, and treatment of a range of conditions, including cancer.

  • Zhou developed a novel

el m method hod o

  • f exos
  • som
  • me i

isol

  • lat

ation

  • n which NCH could use for

treatment.

  • But Zhou and Chen founded

nded a a Chines nese c e compan any to monetize the technique Zhou developed, using ng i intellec ectual ual p proper perty that at b belong

  • nged t

ed to NCH.

  • The defendants were paid more than $800,000

for NCH’s intellectual property.

  • Zhou, Chen charged with cons
  • nspirac

acy t to

  • stea

eal t trad ade s secret ets, and other offenses.

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SLIDE 9

U.S.

  • S. V. BO MAO

9

  • The Vi

Victim Com Compan pany (VC) C) i is a a leader i in n the he f fiel eld of open-channel controller technology for solid state hard (SSD) drives.

  • Bo Mao was a pr

prof

  • fes

essor at at a a PR PRC C uni niver ersity, and later became a visi siti ting p profe fesso sor r at a Texas university; at the same time, Bo Mao was also working for Company 1, a compe petitor

  • r of VC, which was seeking VC’s technology.
  • While in the PRC, Bo Mao was collab

abor

  • rating

ng on resear earch w with a a colleague i eague in Texas as and sought ght access ss t to the V VC’s t technol hnology

  • gy, o
  • stens

ensibl bly for resear earch h purposes; the VC provided access to its technology to Bo, who agreed to the VC’s restrictions on its IP

  • Company 1 was directing Bo’s research on the Victim Company’s technology;

evidence indicates that Bo, or someone else, was attempting to reve verse se-engi engineer neer the technology.

  • Bo charged with wire fraud.
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SLIDE 10

PRC U RC UNIVER

IVERSIT SITIES IES BENEFIT NEFIT FROM ROM THEFT EFT

10

  • PRC nationals Hao

ao Zhan hang g and Wei Pang charged in a thirty-two count indictment which charged six individuals with econo

  • nomic espi

pionag

  • nage

e and thef heft

  • f
  • f trade

de secre crets ts for their roles in a long-running effort to obtain U.S. trade secrets for the be benefit of

  • f uni

niversities and and com

  • mpan

anies c cont

  • ntrolled b

by the PR he PRC C gov

  • ver

ernm nment nt.

  • Zhang and Pang met at a univer

ersity i in Southe hern C n Califor

  • rni

nia a during their doctor

  • ral

al studi dies es in electrical engineering, where they conducted resear earch h that w was funded nded by DARPA.

  • Zhang and Pang used s

stol

  • len

en IP to obt

  • btain pr

prof

  • fes

essor

  • rships

ps at Tianjin University, a leading PR PRC C Ministry of

  • f Edu

Education

  • n school.
  • The stolen trade secrets, converted through a joint

nt v vent ntur ure e in the PRC, enabled Tianjin University to construct and equip a state-of-the-art facility in the PRC state- sponsored Tianjin Economic Development Area, and to obtain commercial and military contracts.

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SLIDE 11

THE PRC RC GOVERNM

NMENT ENT EXPLOIT ITS ACADE ADEMIA IA

  • In September 2019, a PRC government employee, Zhongsan Liu, who was living in New

Jersey, was arrested for a cons

  • nspiracy t

to

  • com
  • mmit vi

visa f a fraud.

  • Liu entered the United States in 2017 to work for the China A

a Assoc

  • ciat

ation

  • n f

for I Internat national

  • nal

Exchang hange o

  • f P

Personne

  • nnel (

(CAIEP IEP), controlled by the PRC’s State A e Adminis istration o

  • f Forei

eign gn Experts A ts Affairs (SAF AFEA), which is responsible for the recruit itmen ent a and certificatio ion o

  • f o
  • ver

ersea eas talen ent and experts to work in China, and for organiz izing o g over ersea eas t trainin ing g for Chinese technical professionals.

  • Liu worked to further

er t the PRC’s ’s o

  • bjec

ectiv ives es by recruiting U.S. experts for projects and positions in China, certifying U.S. universities as SAFEA EA training institutes, and participated in S&T conferences which provided opportunities for recruitment.

  • Liu helped obtain a J-1 visa for a PRC government employee to enter the United States,

purportedly to study at a university in Georgia, when in fact this employee was going to work for CAIEP EP, in New York, to recruit in the U.S., and not conduct academic research.

11

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SLIDE 12

12

WHAT

AT SHOUL HOULD BE PROTE TECTED?

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SLIDE 13

BES

EST SECURIT ITY PRA RACTI CTICE CES

  • Awareness building and

communications

  • Coordination within institution
  • Training of faculty and students

about threat and obligations

  • Review of foreign gifts, grants,

contracts, and collaborations

  • Review of faculty and student

foreign financial interests and affiliations

  • Protection of data and

cybersecurity

  • Protection of IP and use of

technology control plans

  • Regular interactions with

federal security and intelligence agencies

  • Foreign travel safeguards and

protections

  • Vetting of international visitors

and students

  • Export control compliance

program

13

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SLIDE 14
  • CSSAs were established to provide on
  • n-camp

mpus support t to overse seas s Chinese se students ts abroad; most of the activities do not present a threat.

  • Some chapters in the U.S. have reportedly received fund

funding fr from the he Chi hinese Communist Par arty (C (CCP) and and/or hav have direct link nks to

  • the

he Chi hinese gov

  • vernm

nment

  • nt. In certain instances, those connections have reportedly been

leveraged to chill ill acade demic ic fre reedo doms.

  • In one notable instance, a CSSA chapte

pter pu public blicly ly critic riticiz ized d a Chin inese grad aduat ation

  • n speaker at a U.S. school who had praised the “fresh air of free

speech” and democracy in the U.S. and had criticized the Chinese government; the spe speaker la later apo pologiz ized d and asked for “forgiveness” and according to reports, the CSSAs re resp sponse was s pr prais ised d by a Chin inese Embassy ssy offic icia ial.

CHI

HINE NESE STUDE TUDENT AND ND SCHOL CHOLARS

14

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SLIDE 15

THE

HE BIG IG PIC ICTUR TURE

Post-WWII Order China’s World Order

  • World Bank, International Monetary Fund
  • China-led Asian Infrastructure Investment Bank (AIIB),

One Belt One Road

  • Peaceful settlement of international disputes, e.g.

Convention on Law of the Sea (CLOS), UN

  • Rejection of CLOS ruling on the South China Sea,

increased use of UN veto power

  • Open shipping, international navigation rights
  • Unilateral claims to the South China Sea, constructing and

militarizing artificial islands

  • Free and fair trade
  • Price dumping, massive economic espionage, currency

manipulation, disputes over WTO

  • Free enterprise
  • State-owned enterprises, politicians as major

stakeholders, tight political control

  • Global spread of multiparty democracies with free and fair

elections

  • One-party state
  • Religious freedom
  • Repression of Falun Gong, Uighurs, Dalai Lama, Christian

churches, and other religious minorities

  • Press freedom, Internet freedom
  • State-controlled media, the Great Firewall of China, 50

Cent Army 13