US Experts Warn of China’s Coordinated Economic Espionage Campaign

A Red Flag Over Chinese Espionage
A new report from the Washington, D.C.-based think tank, the Information Technology & Innovation Foundation (ITIF), warns that China is running a coordinated, whole-of-society campaign to steal U.S. technology.

"China’s campaign of economic espionage against the United States spans cyber intrusions, insider theft, and technology transfers disguised as collaboration," the report stated. Written by intelligence analyst and applied historian Darren E. Tromblay, the report calls for a strategic, nationwide response to disrupt Beijing’s elaborate espionage ecosystem.

China’s Systemic Approach
The report details how China’s economic espionage operates on multiple fronts. From state intelligence agencies to ostensibly private firms, Beijing coordinates cyber, human, and corporate channels to acquire U.S. industrial and defense technology. Chinese companies in the U.S. act as collection platforms, with subsidiaries and consulting fronts recruiting American talent and funneling proprietary knowledge back to state-owned enterprises.

Despite the campaign’s scale, experts say it has not been treated with the urgency of other national security concerns. Anthony Vinci, adjunct senior fellow at the Center for New American Security, explained:

"We have traditionally treated military and political issues as core national security concerns. Economic espionage must be treated the same way. We need a whole-of-government, or whole-of-society, approach similar to counterterrorism efforts post-9/11."

A Whole-of-Society Operation
Michael Bell, CEO of Suzu Testing, highlighted China’s distinct approach:

"Russia conducts opportunistic espionage through intelligence services. China operates a whole-of-society approach, where companies, universities, and talent programs function as coordinated collection platforms."

Programs such as Thousand Talents and new “foreign expert” initiatives have turned U.S. engineers and researchers into conduits for trade secrets. April Lenhard, principal product manager at Qualys, explained:

"Insiders don’t just steal files. They take processes, context, and proprietary ‘secret sauce’ that costs American companies billions in R&D while handing it to China for free."

Eran Barak, CEO of MIND, added that insider threats often bypass perimeter defenses:

"Whether intentional or accidental, insiders have access to sensitive systems, making it easier to exfiltrate critical information without triggering alerts. Adversaries exploit this by targeting individuals with privileged access."

Eroding Counterintelligence Capacity
The report also highlights diminishing U.S. counterintelligence capacity. Shifts in FBI and DHS priorities have weakened detection and disruption capabilities just as Beijing intensifies its efforts.

"Counterintelligence, particularly combating economic espionage, is an essential mission that must be adequately resourced," the report stressed.

Bell emphasized the opportunity for a new strategy:

"The U.S. should deepen partnerships between federal agencies and private-sector cybersecurity firms to act as force multipliers. Companies in strategic sectors aren’t just victims; they’re partners on the front line."

An Industrial Drain, Not Isolated Incidents
Lenhard noted that Chinese espionage is an industrial-scale campaign:

"It’s designed to accumulate American competitive capability faster than the U.S. can defend or replace it. Technology theft must be treated as a counterintelligence threat, not a regulatory footnote."

The ITIF report concludes that the PRC-U.S. contest over technology is an evolving battle.

"PRC objectives will shift with geopolitical goals, influencing targeting of industries, companies, and technologies. The U.S. government’s ability to preemptively disrupt economic espionage will mitigate risks to American industry."