This report below, prepared for the Commission by OTH Intelligence Group LLC, details China’s rapid development of mature remote sensing capabilities in pursuit of its economic and societal development, national security and geopolitical interests, and military modernization.
This staff issue brief reviews how widespread adoption of a Chinese platform for sharing logistics information could create economic and strategic risks for the United States and other countries.
The following report, "China’s Space and Counterspace Capabilities and Activities," examines China’s military and civil space programs, including the role of military-civil fusion (MCF) and international cooperation in the development of its space program.
Chinese companies utilize a variety of methods—many of them covert or coercive—to acquire valuable technology, intellectual property (IP), and knowhow from U.S. firms. These efforts are often made at the direction of and with assistance from the Chinese government, part of Beijing’s larger effort to develop its domestic market and become a global leader in a wide range of technologies. These acquisition attempts frequently target advanced technologies such as artificial intelligence, biotechnology, and virtual reality, which are still in the early stages of development but could provide dual military and civilian capabilities in the future.
This report explores six methods used by Chinese companies to acquire U.S. technology and IP, including (1) foreign direct investment, (2) venture capital investment, (3) joint ventures, (4) licensing agreements, (5) cyber espionage, and (6) talent acquisition programs. It then examines the effectiveness of existing U.S. regulations to assess and address the risks of increased technology transfers to China.
China seeks to become an international leader in space, or what it terms a “space power in all respects.” In this role, Beijing aspires to lead international space-related innovation and exploration and establish an advanced system of infrastructure to serve its space sector. China has suffered some setbacks on projects crucial for the progression of program milestones, such as its heavy-lift launch vehicle program, and still lags behind the United States in its human spaceflight and space station program. Nevertheless, China’s space program is a source of national pride, and its consistent high level of political support and funding ensures progress toward establishing itself as a space power. In 2003, China joined the United States and Russia as a member of the exclusive group of countries to have conducted human spaceflight, and since then it has nearly completed a new, rival global navigation satellite system (GNSS)—set for completion in 2020—and demonstrated its willingness to undertake high-risk, high-reward missions, as reflected by its historic landing on the moon’s far side in 2019. China is likely to achieve future milestones in areas where it is lagging behind international standards on shorter timetables than when the United States accomplished similar missions.
This report examines China’s space goals and national space strategy; its progress toward those goals, including an examination of China’s progress in its advanced launch vehicle, long-term crewed space station, and lunar exploration programs; and the primary entities involved in setting and implementing its space policy. Finally, the report assesses the implications of China’s space program for the United States and its continued leadership in space.
The U.S.-China Economic and Security Review Commission released a report entitled China’s Biotechnology Development: The Role of U.S. and Other Foreign Engagement, prepared for the Commission by Gryphon Scientific and Rhodium Group. The report examines the development of China’s biotechnology industry and the role foreign trade, investment, and other linkages—particularly with the United States—have played in its evolution.
The Internet of Things (IoT)—the interconnection of physical and virtual things via information and communication technologies—is being applied to virtually every sector from smart thermostats in households to swarms of autonomous drones in the battlefield. This report, contracted by the USCC and authored by SOS International, outlines China’s state-led approach to IoT development, assesses the implications for the U.S. economy, national security, and the privacy of U.S. data, and makes recommendations for U.S. policymakers. China’s concerted, state-led approach, including ongoing efforts to influence international IoT standards, has put China in a position to credibly compete against the United States and other leaders in the emerging IoT industry. China’s research into IoT security vulnerabilities and its growing civil-military cooperation raise concerns about gaining unauthorized access to IoT devices and sensitive data. In addition, China’s authorized access to the IoT data of U.S. consumers will only grow as Chinese IoT companies leverage their advantages in production and cost to gain market share in the United States based on the terms of use and sweeping Chinese government data access powers.
The report examines five categories of China’s advanced weapons systems (counter-space, unmanned systems, maneuverable reentry vehicles, directed energy and electromagnetic railguns) and artificial intelligence applications for national defense. The report also assesses the implications of China’s advanced weapons programs for the United States and its allies and provides recommendations.
The Chinese government has a comprehensive, long-term industrial strategy to build internationally competitive domestic firms and replace foreign technology and products with domestic equivalents first at home, and then abroad. This issue brief serves as a primer on the policies in the Chinese government’s toolbox for achieving its technonationalist targets, to include localization, massive subsidies for R&D, government procurement, China-specific standards, foreign investment restrictions, recruitment of foreign talent, state-directed acquisition of foreign technology and intellectual property, and, in some cases, industrial espionage.