Thursday, March 9, 2023

CCP Steals Up to $600 Billion a Year in US Intellectual Property, Experts Warn

By Lawrence Wilson

March 8, 2023Updated: March 8, 2023

Chinese Leader Xi Jinping raises his hand as he votes during the closing session of the 20th National Congress of the Chinese Communist Party at The Great Hall of People in Beijing, on Oct. 22, 2022. (Kevin Frayer/Getty Images)


The Chinese Communist Party has been stealing U.S. intellectual property for years, costing Americans up to $600 billion annually, the equivalent of $6,000 for every family, an expert testified on Capitol Hill on March 8.

The theft has been systematic, deliberate, and obvious—but not adequately addressed by the federal government, witnesses said.

“When it comes to intellectual property, the Chinese Communist Party has been eating our lunch for many years across both parties’ administrations,” Rep. Ben Cline (R-Va.) said, then corrected his comment.

“I think it needs to be changed to, ‘They’ve been stealing our lunch money and parading in front of us.’”

Calif Rep Darrell Issa

Rep. Darrell Issa (R-Calif.) speaks during a news conference in El Cajon, Calif., on Sept. 26, 2019. (Gregory Bull/AP Photo)

To stop the thievery, the United States must employ a multidimensional strategy that begins with developing a bipartisan, societal will to confront the problem, experts said.

The testimony came at a hearing of the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet on March 8, during which members of both parties acknowledged the ongoing theft of U.S. intellectual property and resolved to find a solution.

Uncivil Actions

The United States has embraced trade with China since President Richard Nixon reestablished diplomatic relations with the country in 1972.

While generally beneficial, the open trading relationship hasn’t produced the hoped-for moderating effect on the behavior of the Chinese Communist Party (CCP), subcommittee chairman Darrell Issa (R-Calif.) said.

“American national security is at risk because of China’s government’s quest to achieve superiority using both internal and external gotten technology” through both legal and illegal means, Issa said.

Ranking Member Hank Johnson (D-Ga.) agreed with the assessment.

“We know that the sale scale of China’s IP theft is enormous. We know that it hurts our inventors’ ability to compete and succeed,” Johnson said.

Epoch Times Photo

A model of the Commercial Aircraft Corp. of China Ltd. (Comac) C919 aircraft at the Singapore Airshow in Singapore on Feb. 6, 2018. (Seong Joon Cho/Bloomberg via Getty Images)

“And we know that we need to improve our laws and policies to not only protect America’s intellectual property from the Chinese government but also to mitigate the damage already done.”

Johnson and other speakers noted that U.S. competitiveness with China shouldn’t fuel anti-Asian racism.

“We are in an innovation war with China. But we don’t win that war by giving our values and giving in to hate,” Johnson said.

Anything Not Nailed Down

Witnesses described the CCP’s IP theft program as a “whole society” approach.

“China uses intelligence services, science and technology investments, academic collaboration, research partnerships, joint ventures, front companies, mergers and acquisitions, and outright theft via insider threats and cyber intrusions,” said William Evanina, founder and CEO of the Evanina Group, a consulting firm specializing in intellectual property security.

China steals pretty much “everything” having to do with intellectual property, he said.

The list is “clear, concise, at the same time strategic and comprehensive. Just to name a few: aerospace deep-sea technology, biotechnology, information technology, manufacturing, clean energy, electric battery technology, and DNA genomics,” he said.

Chinese company Comac’s C929 airplane, to be debuted next month, was created almost entirely with stolen technology, Evanina said.

Addressing Vulnerabilities

Predatory use of patent laws is a primary tactic of Chinese companies, witnesses said.

Chinese companies will steal U.S. ideas and innovations, sometimes aided by state laws prohibiting noncompete contracts, then obtain patents on the work and sue the innovating U.S. company for patent infringement.

To combat that, the U.S. patent process should be improved to ensure that patents are correctly reviewed and that legal enforcement is fair both here and in China, according to Charles Duan, a professor at American University Washington College of Law and a member of the U.S. Patent and Trademark Office’s public advisory committee.

Epoch Times Photo

TikTok advertisement in Union Station, Washington, on Feb. 17, 2023. (Madalina Vasiliu/The Epoch Times)

Joint ventures between Chinese and U.S. companies have also provided opportunities for intellectual property theft.

“We don’t play by the same rules as the Communist Party of China,” Evanina said.

While acknowledging that U.S. investment in Chinese countries is legal and often lucrative, Evanina asked business leaders to weigh the trade-off between profit and national security.

“We are in a place right now where our global supremacy, our capitalist mindset is clearly superseding and overlapping with our national security interests,” he said.

Tech innovators and research institutions aren’t the only points of vulnerability. Social media apps are another, especially those that send data back to the app makers, many of which are based in China.

“This is really a matter of evaluating the backdoor risks that are posed. I think we need to do a better job of that,” said Mark Cohen, distinguished senior fellow and director of the Asia IP Project at Berkeley Center for Law and Technology.

Previous attempts to reform the behavior of the CCP by multiple administrations have failed. The starting point for any future attempt is to develop a bipartisan, public-private approach to the problem, according to Evanina.

“You have to have the political will across parties and administrations and, importantly, in the U.S. business community,” he said.

“Absent the sustained will, it will be increasingly difficult to protect the U.S. economy and American workers from the negative impact of Chinese policies and practices on [intellectual property].”

https://www.theepochtimes.com/ccp-steals-up-to-600-billion-a-year-in-us-intellectual-property-experts-warn_5108739.html

US Blacklists 37 Companies, Including China’s BGI, Inspur

By Reuters

March 6, 2023Updated: March 6, 2023

The logo of Chinese gene firm BGI Group at its building in Beijing, on March 25, 2021. (Carlos Garcia Rawlins/Reuters) 

The Biden administration on Thursday added 37 companies to a trade, including units of Chinese genetics company BGI and Chinese cloud computing firm Inspur, in a move that promises to further ratchet up tensions with Beijing.

The Commerce Department, which oversees export controls, added BGI Research and BGI Tech Solutions (Hongkong), over allegations that the units pose a “significant risk” to contributing to the Chinese Communist Party’s (CCP) surveillance.

“The actions of these entities concerning the collection and analysis of genetic data present a significant risk of diversion to China’s military programs,” it said.

Reuters previously reported BGI was collecting genetic data from millions of women for sweeping research on the traits of populations, and collaborates with the Chinese military.

Also listed was BGI’s forensics subsidiary, Forensics Genomics International.

The Commerce Department accused Inspur of acquiring and attempting to acquire U.S. goods to support the CCP’s military modernization efforts.

The companies and the Chinese embassy in Washington did not immediately respond to requests for comment.

Commerce added 26 other Chinese entities to the list—which makes it hard for targeted companies to receive shipments of U.S. goods from suppliers.

The additions included several entities Commerce said were supplying or attempting to supply a sanctioned entity in Iran, and three firms in Russia, Belarus, and Taiwan that Commerce said were contributing to Russia’s military.

It also targeted companies in China and Burma (also known as Myanmar) for violations of human rights, and went after companies in China and Pakistan for contributing to ballistic missile programs of concern, including Pakistan’s.

“When we identify entities that pose a national security or foreign policy concern for the United States, we add them to the Entity List to ensure we can scrutinize their transactions,” Assistant Commerce Secretary Thea Kendler said in a statement.

The latest additions to the trade blacklist are likely to further escalate ill will between Washington and Beijing, which have been locked in a technology war for years.

Tensions have been especially high since the Biden administration last month shot down a Chinese spy balloon that had crossed a broad swath of the United States.

“We cannot allow our adversaries to misuse and abuse technology to commit human rights abuses and other acts of oppression,” said Assistant Secretary of Commerce for Export Enforcement Matthew Axelrod. “That’s why we’re committed to preventing bad actors from siphoning off our technology. We will take an all-tools approach to combat this threat.”

In 2020, the Commerce Department added two units of BGI Group, the world’s largest genomics company, to its economic blacklist over allegations it conducted genetic analyses used to further the repression of China’s minority Uyghurs.

Beijing has denied wrongdoing. BGI denied allegations of wrongdoing at the time.

By Alexandra Alper and David Shepardson

 

https://www.theepochtimes.com/us-adds-units-of-chinas-bgi-inspur-to-trade-blacklist_5101916.html

No comments:

Post a Comment