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The Center for Strategic and International Studies issued the following commentary by Anna Lehman-Ludwig, former research intern with the Technology Policy Program:
On August 12, CSIS hosted a conversation with Assistant Attorney General for National Security John C. Demers on Chinese cyber espionage. John Demers leads the Department of Justice's China Initiative, created in 2018 to combat espionage directed by the Chinese government.
The Initiative attempts to disrupt what Demers called China's "rob-replicate-replace" policy, where Chinese individuals or companies steal American IP, replicate the product or service in China, replace the American company on the Chinese market, and, if all goes well, on the global market. Most cases prosecuted as part of this are insider cases, concerning individuals who steal IP from American companies or universities where they work and provide that information to China. This can take the form of State-directed cases or individuals induced by the incentives found in Chinese programs.
In State-directed cases, the Chinese intelligence services will develop relationships with individuals working in companies in the U.S. and co-opt them to gain information, utilizing traditional espionage approaches.
Chinese talent recruitment initiatives like the Thousand Talents Program are another way that the Chinese steal IP. Individuals who...