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[osint] U.S. Grapples with Intelligence Threat from China

Bruce Tefft
Sat, 11 Jun 2005 07:06:51 -0700

"FBI credibility has also suffered from lapses"

 

True, the lapses are there but FBI still has as much credibility as ever
with Congress and the Administration.in spite of all evidence to warrant the
contrary.

 

Bruce

 

 

http://www.defensenews.com/story.php?F=907029&C=america

Posted 06/10/05 13:58  Print-friendly version

U.S. Grapples with Intelligence Threat from China

By DAVID MORGAN, REUTERS

 

China, whose surging growth feeds an incessant appetite for U.S. technology,

poses a growing intelligence threat that the United States may be

ill-equipped to combat, current and former U.S. officials say.

 

With the Bush administration embroiled in Iraq and the war on terrorism,

intelligence experts fear it may be ignoring a determined Chinese strategy

to acquire sensitive technology with commercial and military applications

through informal spy networks, with potentially thousands of operatives.

 

Such efforts could eventually erode U.S. economic and military prominence,

officials and analysts said.

 

The FBI lacks resources to cope, they said. Also, U.S. corporations face

business pressure to transfer key research and development facilities into

China in exchange for promised access to its massive domestic market.

 

Some U.S. companies, which have been fined over the practice, have even

struck illicit deals providing China with technology to upgrade its missile

systems.

 

"I would say that we are not paying . adequate attention to (China), because

we have been so diverted by the issues of the war on terrorism," John

Gannon, former chairman of the National Intelligence Council, said at a

forum this week.

 

Chinese officials deny suggestions of spying.

 

"The allegation of China's threat is totally groundless," said Chu Maoming,

spokesman for the Chinese Embassy in Washington.

 

Spies from about 100 countries sought sensitive U.S. technology last year,

according to a report by the Office of the National Counterintelligence

Executive.

 

The most determined efforts came from only a handful of nations, including

China, Russia, France, Iran, North Korea and Cuba, counterintelligence

officials said.

 

China is viewed as the most serious threat, they said. It needs foreign

technology to maintain robust economic growth that attracts overseas

investment and creates jobs for a vast population, still beset by poverty

and unemployment, analysts said.

 

'Front' Companies

 

As a result, they said, China has adopted a variety of acquisition methods,

including licensing, theft, cooperation and espionage - some legal and some

illegal.

 

China has about 3,000 "front" companies in the United States that exist

mainly to obtain sensitive U.S. technology, according to government

estimates cited by experts.

 

Some 300,000 Chinese citizens and 15,000 Chinese delegations visit the

United States annually. An estimated 150,000 Chinese students are at U.S.

universities; many are destined for jobs at high-tech U.S. firms or national

research facilities.

 

The Chinese government assumes such individuals "will be intelligence

collectors. And many are," said I.C. Smith, a former U.S.

counterintelligence official.

 

A main strategy is for people to collect small pieces of intelligence that

can be assembled into a useful intelligence picture, counterintelligence

officials said.

 

Current and former officials expressed doubts about the U.S. ability to deal

with China's intelligence efforts, especially as it is embroiled in Iraq and

the war on terrorism.

 

The FBI scaled back its China program sharply after the Cold War ended a

decade ago, and still appears to lack resources, despite a subsequent

buildup.

 

"The fact is they need appropriate resources to deal with this, and

privately they've said they're severely understaffed," said Peter Brookes, a

former Pentagon official now at the Heritage Foundation.

 

FBI credibility has also suffered from lapses, including the bungled

investigation of Wen Ho Lee, the former Los Alamos Nuclear Laboratory

physicist accused of spying for China until the allegations collapsed for

lack of evidence.

 

- Additional reporting by Paul Eckert

 

 

 



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  • [osint] U.S. Grapples with Intelligence Threat from China Bruce Tefft