China has leveraged business partnerships with U.S. companies to gain access to advanced technologies and innovations. By entering joint ventures or mergers, Chinese firms often gain access to sensitive information that would otherwise be off-limits. The acquisition of TikTok by the Chinese company ByteDance is often cited as a potential example of how business deals can raise concerns about technology transfer and access to sensitive data.
U.S. companies doing business in China are often required to share proprietary technology as a condition of market access. This practice not only gives Chinese companies an unfair advantage but also weakens the competitive position of U.S. businesses. Such partnerships may appear mutually beneficial at first but often lead to the unauthorized use of American intellectual property.
Hacking is one of the most direct ways China gathers sensitive information. Skilled hackers target U.S. government systems, businesses, and even individuals to access confidential data. Once inside, they can steal trade secrets, financial records, or personal information, which is then used for their benefit. These hackers often work as part of state-sponsored groups, making their attacks highly sophisticated and difficult to detect.
High-profile breaches, such as the 2015 hack of the U.S. Office of Personnel Management, exposed sensitive information about millions of government employees. By stealing data like this, China can not only exploit weaknesses in American cybersecurity but also gain insight into defense strategies, research projects, and even personal vulnerabilities of key individuals.
China has launched specific hacking campaigns to target major U.S. companies. Operation Aurora, for example, was a series of cyberattacks that targeted Google and other large firms in 2009. These attacks aimed to steal intellectual property and gain access to sensitive systems.
By exploiting software vulnerabilities, Chinese hackers infiltrated networks and exfiltrated valuable data. The operation highlighted the sophistication of China’s cyber capabilities and their ability to exploit weaknesses in even the most secure systems. Such targeted hacks demonstrate China’s relentless pursuit of technological dominance and strategic advantage.
China frequently uses partnerships with U.S. companies to access proprietary information and trade secrets. By entering joint ventures or licensing agreements, Chinese firms often gain insider knowledge about innovative technologies, manufacturing processes, or business strategies.
In some cases, the partnership may appear legitimate, but the ultimate goal is to reverse-engineer products or replicate processes to compete in global markets. For example, some companies have reported their designs being stolen and reproduced by Chinese firms after a partnership dissolved. This tactic undermines American businesses, as stolen innovations are used to manufacture cheaper alternatives, often flooding the market and driving down competition.
China actively recruits individuals to act as spies, both in the U.S. and abroad. These recruits are often everyday people who are lured with money, political favors, or threats. Some are Chinese nationals studying or working in the U.S., while others are American citizens approached through subtle channels.
China’s intelligence agencies carefully target people who have access to valuable information, such as government employees, corporate executives, or academics. These individuals are trained to quietly gather data, take photos, or eavesdrop on sensitive conversations. In many cases, the spies may not even realize the full extent of their role, but their activities contribute significantly to China’s vast intelligence network.
The Chinese government doesn’t limit its surveillance to political or business targets; it also focuses on dissidents—individuals critical of the Chinese regime. In the U.S., dissidents are monitored, harassed, or even blackmailed into silence. Some are pressured to return to China under the pretext of legal charges or family safety.
This tactic, often part of the so-called “Operation Fox Hunt,” extends Beijing’s influence beyond its borders. The goal is to silence opposition voices and ensure no one speaks out against the regime. In some cases, dissidents have reported being followed or receiving threatening messages, creating an environment of fear even on U.S. soil.
China has long sought to enhance its military capabilities, and stealing nuclear weapon secrets is a key part of that effort. Chinese operatives target American laboratories, defense contractors, and government agencies to gather classified information on nuclear technology. These efforts often involve cyberattacks, insider spies, or even partnerships with scientists.
Such theft gives China an edge in modernizing its arsenal while undermining U.S. security. The theft of nuclear secrets isn’t just about weapons; it also includes knowledge about delivery systems, research methods, and defensive measures. Each stolen piece of information bolsters China’s position as a global military power.
Chinese students and researchers studying abroad, particularly in the U.S., are sometimes used as information gatherers. Many are pressured by the Chinese government to share sensitive academic or technological findings. Others may be sent to the U.S. specifically to access research projects with military or commercial applications.
Universities and research institutions have raised concerns about intellectual property theft, as some students have been caught copying data or smuggling research back to China. While not every Chinese student is involved, the sheer number of individuals under surveillance or pressure makes this tactic highly effective.
Employees in U.S. companies are often approached by Chinese intelligence to act as insider spies. These individuals may be recruited directly or coerced into providing sensitive information. In many cases, insiders are targeted because they have access to proprietary data or advanced technologies.
Chinese operatives might use bribes, blackmail, or promises of career advancement to manipulate employees into sharing classified information. Insider espionage has led to significant losses for American businesses, as stolen trade secrets are used to give Chinese competitors a competitive advantage, often eroding the global market share of U.S. firms.
China also uses fake companies as a front to acquire U.S. technology. These shell companies are designed to obscure the true ownership and intentions behind an acquisition. By purchasing small or struggling tech firms, Chinese entities gain access to cutting-edge technologies, patents, and trade secrets.
Once acquired, the technologies are either shipped back to China or used to undermine U.S. industries by creating cheaper alternatives. This tactic often bypasses regulatory oversight, as the acquisitions may appear unrelated to national security at first glance. However, the long-term impact can be devastating for U.S. innovation.
Chinese citizens, both at home and abroad, are often compelled by their government to participate in espionage activities. Laws in China require individuals and companies to cooperate with state intelligence agencies, regardless of their personal stance.
This means that Chinese citizens living in the U.S. may be forced to gather information on their employers, universities, or communities. Failure to comply often results in threats to their families or personal safety back in China. This tactic allows China to maintain a vast network of informants without the need for traditional recruitment efforts.
China taps into global academic networks to gather valuable information and research. By funding collaborative projects or offering lucrative positions to foreign scientists, China gains access to cutting-edge discoveries in fields like artificial intelligence, biotechnology, and aerospace. In some cases, researchers unknowingly share sensitive data with Chinese collaborators who later misuse the information.
U.S. institutions have faced significant challenges in safeguarding their intellectual property, as the lines between legitimate academic collaboration and espionage are often blurred. These science networks are particularly effective because they exploit the open and cooperative nature of academia.
State-sponsored cyberattacks are a cornerstone of China’s espionage efforts. Hackers often target large corporations, government agencies, and critical infrastructure to steal sensitive data. These attacks range from ransomware schemes to sophisticated operations aimed at exfiltrating intellectual property.
The scale of Chinese cyberattacks is staggering, with some incidents costing companies millions of dollars in losses. Beyond financial theft, cyberattacks often disrupt operations, creating chaos for the victims. The stolen data is frequently used to bolster Chinese industries or military projects, giving China a strategic edge over its competitors.
Phishing emails are a simple yet effective way for Chinese operatives to gain access to sensitive information. These emails often appear to come from trusted sources and include links or attachments that, when clicked, install malware or steal login credentials.
Phishing campaigns have targeted government officials, corporate executives, and everyday citizens alike. Once inside a system, hackers can access confidential data, monitor communications, or even shut down critical operations. Despite their simplicity, phishing attacks remain one of the most successful tools in China’s cyber-espionage arsenal.
Exchange programs, which often involve sending students, researchers, or professionals to the U.S., are another method China uses to gather intelligence. Participants in these programs may be tasked with collecting information during their stay or after returning to China. In some cases, individuals are pressured by the Chinese government to report on their experiences or share specific details about people or projects they encountered.
These programs are particularly effective because they provide access to high-level institutions and influential individuals, often without raising suspicion. By leveraging exchange programs, China gains valuable insights into U.S. academia, technology, and policy.
