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Chinese Industrial Espionage: Technology Acquisition and Military Modernisation (Asian Security Studies) 1st Edition

4.6 out of 5 stars 44 ratings

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This new book is the first full account, inside or outside government, of China’s efforts to acquire foreign technology.

Based on primary sources and meticulously researched, the book lays bare China’s efforts to prosper technologically through others' achievements. For decades, China has operated an elaborate system to spot foreign technologies, acquire them by all conceivable means, and convert them into weapons and competitive goods―without compensating the owners. The director of the US National Security Agency recently called it "the greatest transfer of wealth in history."

Written by two of America's leading government analysts and an expert on Chinese cyber networks, this book describes these transfer processes comprehensively and in detail, providing the breadth and depth missing in other works. Drawing upon previously unexploited Chinese language sources, the authors begin by placing the new research within historical context, before examining the People’s Republic of China’s policy support for economic espionage, clandestine technology transfers, theft through cyberspace and its impact on the future of the US.

This book will be of much interest to students of Chinese politics, Asian security studies, US defence, US foreign policy and IR in general.

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Editorial Reviews

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‘In a book likely to annoy and please in equal measure, the authors use Chinese-language sources, often from public policy documents, to describe a system that has at its core not the attention-grabbing issue of cyberespionage, but human-based, meticulous, often open-source acquisition that involves multiple actors at all levels of the party and state, and appeals to the patriotism of Chinese abroad.' -- New York Times



‘In a book likely to annoy and please in equal measure, the authors use Chinese-language sources, often from public policy documents, to describe a system that has at its core not the attention-grabbing issue of cyberespionage, but human-based, meticulous, often open-source acquisition that involves multiple actors at all levels of the party and state, and appeals to the patriotism of Chinese abroad.' -- New York Times

'This book rings alarm bells about technology theft on a scale that the authors say is unprecedented in history and that they believe has strategic implications.' -- Foreign Affairs

About the Author

William C. Hannas has an MA from the University of Chicago in Chinese and a PhD from the University of Pennsylvania in Asian languages. He served with the US Navy and Joint Special Operations Command, taught at Georgetown University, and holds a senior executive position in a component of the US federal government. Hannas is author of Asia’s Orthographic Dilemma (1997) and The Writing on the Wall: How Asian Orthography Curbs Creativity (2003).

James Mulvenon is Vice-President of Defense Group, Inc.’s Intelligence Division and Director of DGI’s Center for Intelligence Research and Analysis. Trained as a Chinese linguist, he is a leading expert on Chinese cyber issues, and has published widely on Chinese military affairs, party-army relations, C4ISR, and nuclear weapons doctrine and organizations. He has a PhD in political science from the University of California, Los Angeles, and is author of Soldiers of Fortune (2000).

Anna B. Puglisi has an MPA and MS in environmental science from Indiana University, has worked in research and technical infrastructure, and now holds a senior analyst position in a component of the US federal government. Ms. Puglisi studied at the Princeton in Beijing Chinese language school and was a visiting scholar in Nankai University’s Department of Economics, where she studied China’s S&T policies, infrastructure development, and university reforms.

Product details

  • Publisher ‏ : ‎ Routledge; 1st edition (May 15, 2013)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 320 pages
  • ISBN-10 ‏ : ‎ 0415821428
  • ISBN-13 ‏ : ‎ 978-0415821421
  • Item Weight ‏ : ‎ 1.2 pounds
  • Dimensions ‏ : ‎ 6.14 x 0.73 x 9.21 inches
  • Customer Reviews:
    4.6 out of 5 stars 44 ratings

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Top reviews from the United States

  • Reviewed in the United States on December 5, 2014
    The book, Chinese Industrial Espionage, is unique because it gives a comprehensive index to hundreds of the Chinese organizations involved with acquiring technology from the West. The book explains the push and pull in their organizational pecking orders, and it carefully unties the Chinese Gordian knot of interrelated local, academic, military, and national organizations. These groups are all extracting engineering and intellectual capital from the West and the USA, for their own Chinese uses. And those extractions are without regard to US patents, copyrights, restricted export, or national security law. This is a detailed description of the leading Western technologies gained by China at little cost to them. Because of the extensive amount of translated Chinese data in the book, the book is a must for the shelf of the serious analyst.

    The chapter about Traditional Chinese Espionage opened and clarified several subjects. The author explains that Chinese intelligence collection tradecraft is comparable with that of other advanced nations. Computer intrusion capabilities also are very sophisticated but they are treated in their own chapter. The Chinese are not just thousands of people picking up what they can, one grain of sand at a time, the “vacuum-cleaner” approach. No, there are organizational processes, collection priorities, targeting, and then a variety of modern technical and traditional initiatives to acquire specific data. The Chinese always carefully weigh stealing secrets versus inducing people to give secrets away. Not to be scorned, the Chinese are good, very good at what they do to get what they want. This book provides excellent examples and intimately describes how their collection process is professionally organized.

    Plans for this book were laid down in November 2004. It takes a long time to write, get approval, and publish such a book. My hat is off to the authors.

    Not included in this new book are current examples of those higher level political, business, and profit interrelationships that explain how Chinese organizations are assisted by worthy Western associates. But as two of the authors are employed by the U S Government, their self-censorship is necessarily imposed. So they stick only to the technical but not the political facts: a mass of technologies is gone to China; the transfers were not legal; many types of Chinese organizations were busy in getting these technologies; and the techniques to get them are both old and new and still not fully understood. Background notes are below:

    • Those 1980-1999 technology transfer and economic activities are discussed in detail in The Cox Report. More current items are outlined in good detail by the National Counterintelligence Executive’s bi-annual reports to congress: http://www.ncix.gov/publications/reports/fecie_all/index.php.

    • Washington Times on 25 March 1997 has an article titled "Famous names well paid to support China" and mentioned Messrs. Kissinger and Haig as key figures in the lobbying campaign to seek expanded U.S.-China relations. The article stated: "Both former Cabinet secretaries have received lucrative fees as deal-makers for business-clients with ventures in China, and both have a large financial stake in expanding U.S.-China trade relations..." However, according to the article, the two are not registered with the Justice Department as foreign agents, and the multi-million dollar business campaign to retain China's MFN-status and gain its entry into the WTO "...strains the limits of the lobbying disclosure law and possibly violates the Foreign Agents Act. The article also mentions that Mr. Haig is "honorary senior adviser" to China's government-controlled maritime operation, COSCO, the shipping corporation which, in a shady deal, was intended to take over the closed U.S. naval facilities in Long Beach, California.

    • "The Coming Conflict With China" is a book by former bureau chiefs in China Richard Bernstein and Ross Munro. In an extensive exposé in chapter 4, titled "The New China Lobby,” they describe how Messrs. Kissinger, Eagleburger, Scowcroft, Cyrus Vance, Alexander Haig and other former high-level officials influence US policy towards China often at the expense of a democratic Taiwan and get paid large amounts of money to "advice" corporate clients interested in doing business in China.
    https://wikispooks.com/ISGP/organisations/introduction/1997_04_Taiwan_Communique_Haig_Kiss_Feinstein_Aks.htm

    I wish to give an observation that might shed some perspective. What the US is suffering today with China, it has suffered many times before.

    • The Russians had their New Economic Policy in the 1920s. One example is of the Russian plan in their five year cycles, to get a western auto manufacturing plant built in Russia, then nationalize it and thus capture the technology and machinery. They convinced Henry Ford to build the auto production plant in Russia. He did build it and the Russians nationalized it on their schedule. Something akin is found here in a video that describes General Motors in China:
    https://www.youtube.com/watch?v=Lvl5Gan69Wo

    • In the early 1970s, the US policy of détente with Russian led to a massive Russian technology transfer program that milked the West for all the Russians could get. The Farewell case provides an example. Between the spring of 1981 and early 1982, KGB Colonel Vetrov gave the French [who gave them to the USA] almost 4,000 secret KGB documents dated from the late 70s and early 80s. Included were comprehensive breakdowns of the Russian espionage targets for scientific, industrial, and technical information and their analyses of the successes that the acquisition programs were having. Maybe someday the Chinese version will come our way too.

    • It appears that there is a mirror image with Russia and China from 1980. The Chinese have demonstrated that they are successfully on a par with the Russians in 1982 but now they have the internet to surf as well as a large ethnic pool to fish within that the Russians didn’t have. But what has the U.S. learned?

    The People’s Republic of China going back to the early 1980s has changed from being a friend that was anxious to have our support to being a power that has made a conscious effort to replace the former Soviet Union as a superpower rival of the United States. In 1980 the Chinese decided to change their business model and bring Western technology and money to China. Were they using the lessons learned from Lenin’s New Economic Policy from the 1920s?

    The authors shared this closing overview with me and I agree with them because it adds an important perspective. Fortunately, most Chinese who move to the USA, Canada, the West, manage their lives just fine without the hyphenated expression “Chinese-American” and have as little concern for ancestry as I do for my ancestors in England, Scotland, Ireland and places in between. In America, it’s not supposed to matter.

    That fact gets lost on Chinese technology outreach personnel inside China who imagine that ethnic Chinese or, in their wilder dreams, the whole world, owe China a debt of gratitude. And, thus inspired with a messianic enthusiasm, they press on and on in their quest to acquire all that they can.

    We are inundated with stories of impending doom. This story of bleeding American intellectual capital and technology should be added to the list but portrayed in a way that is fair to Americans of Chinese ancestry who share our country’s fate. There is no yellow peril, just a perilous regime acting in its own interest against us.
    13 people found this helpful
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  • Reviewed in the United States on April 14, 2025
    China is in for the Long Game as planned by Mao in 1949 to replace the US in 100 years... only 24 more to go...
  • Reviewed in the United States on June 17, 2014
    For anyone doubting whether or not China has purloined information from the US, this book certainly provides a definitive answer. It traces the history of China's more than five decades of information gathering using virtually every tool imaginable, both legal and illegal, in order to amass the required information to kick-start various technologies within the country. In one sense, this is actually understandable as after the utter failure of Chairman Mao's plan, the country was left with virtually nothing of substance as it concerns technology.

    In order to rapidly gain even something approaching parity with the West would have been virtually impossible indigenously within a reasonable time frame. The answer was thus to build on what was already available elsewhere. Probably the most incredible facts in the book are how the country has systematically and continuously ingested truly astonishing amounts of information via public, open-source methods such as subscribing to every technical journal on Earth, symposium papers, trade journal articles -- everything.

    They simultaneously, if the authors are to believed (and they probably should be since every single statement in this book has an accompanying reference), pore through each and every document to glean snippets of information that can be woven together like a quilt to build a story around a particular technology. Little or none of this was illegal, as it's available to anyone who could download either for free or for a fee. Tens of thousands of people in a bewildering array of agencies and sub-agencies are employed to perform these tasks. The take away from this is obviously that the West is basically willingly giving the information to the Chinese, the reality of an open society.

    Unfortunately, this work doesn't stop there. Couched under nationalistic terms of "serving the homeland", expatriate Chinese scholars, businessmen and women, and students are apparently used to transfer technology to China they've gained in the United States and elsewhere. Then of course there is toward the end of the book staccato rendering of more recent activities in cyber espionage of which we've all heard so much about of late.

    In my opinion, there are basically two problems with this book: It reads like a laundry list of activities, agencies, specific instances of theft, and so on, to the point at which it becomes tedious reading at best. The list of agency acronyms alone would require their own chapter. Second, there is a paucity of information gleaned from sources within the last few years, except in the case of the cyber espionage chapters. It appears the authors compiled this voluminous information over a long period and then bolted-on the last part right before the book was published.

    Nevertheless, I give the book 4 stars for its ability to compile all of this information, and while not the first to do so (the Cox Committee was the first), it hammers home the point that while virtually all nations and companies steal information from each other, the Chinese have honed it to a fine art.
    6 people found this helpful
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  • Reviewed in the United States on January 9, 2020
    Anyone who does business in China needs this book as a reference. It provides the first comprehensive account of the peril that companies face - whether they do business in China or not - of Beijing's efforts to illicitly acquire foreign technology and trade secrets.
  • Reviewed in the United States on September 29, 2019
    Excellent service, recommend. Great book for all looking to understand t Chinese Industrial Espionage, historical and their way ahead.
  • Reviewed in the United States on March 31, 2015
    Insightful and informative.
    Provides an in-depth insight into how China works.
  • Reviewed in the United States on October 21, 2017
    Eye-opening. Worth a read.
  • Reviewed in the United States on July 23, 2013
    This book is a comprehensive review of one of the most significant issues facing international policy makers today. It covers everything from China's indigenous innovations policies, to its cyber espionage practices. Unlike the other reviewer, who didn't read the book, I just finished it. And as someone who has read most of the seminal reports on the subject, this book is one of the best surveys of the issue I have seen. Additionally, it discusses many of these other landmark studies and builds upon them, including the Cox report. For anyone interested in China's tech acquisition policies, this book is detailed and engaging, without presuming a certain level of prior knowledge. A terrific read.
    11 people found this helpful
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  • Linebacker41
    5.0 out of 5 stars Comprehensive
    Reviewed in the United Kingdom on January 28, 2022
    An extremely comprehensive book that tells you everything you need uo know on this subject
  • J. Rupp
    5.0 out of 5 stars Chinas abgekupferter Sprung nach vorn
    Reviewed in Germany on August 24, 2014
    Der rasante Aufstieg von China hält seit Jahren die Welt in Atem. Das beeindruckende wirtschaftliche Wachstum, die fortschreitende militärische Modernisierung und der steigende politische Einfluss des Landes werfen aber auch unangenehme Fragen auf, die man in Peking am liebsten ignorieren würde. Hierzu gehört beispielsweise die mehr als berechtigte Frage, wie es das "Reich der Mitte“ in so kurzer Zeit eigentlich geschafft hat, den enormen technologischen Rückstand zum Westen aufzuholen und in Teilbereichen der industriellen Produktion und des Rüstungswesens Spitzenpositionen einzunehmen.
    Die amerikanischen China-Experten William C. Hannas, James Mulvenon und Anna B. Puglisi beantworten diese für ihre Studie forschungsleitende Fragestellung mit einer systematischen Untersuchung des chinesischen Strebens nach Informationsgewinn in den Natur- und Ingenieurwissenschaften. Dabei macht ihre Analyse unmissverständlich deutlich, dass dieses Streben nicht auf einer selbstständigen Innovationsfähigkeit beruht, sondern stattdessen von der gezielten Aneignung westlicher Forschungsleistungen abhängig ist. Deren Ergebnisse werden dann völlig skrupellos und kostenfrei zum eigenen Vorteil verwertet.
    Die von diesem erschlichenen Innovations- und Technologietransfer betroffenen westlichen Staaten, Gesellschaften und Ökonomien haben sowohl die Größe der Herausforderung als auch das Ausmaß des angerichteten Schadens noch gar nicht im vollen Umfang realisiert. Die drei Autoren wollen deshalb dazu beitragen, dass sich ein überfälliges Problembewusstsein einstellt und effektive Gegenmaßnahmen endlich eingeleitet werden.

    Das Kopieren von fremden wissenschaftlichen Errungenschaften hat in China eine lange Tradition, die bis ins 19. Jahrhundert zurückreicht. So waren Japan, die europäischen Großmächte, Russland bzw. die Sowjetunion und in jüngster Zeit vor allem die USA von chinesischen Bemühungen betroffen, den eigenen Forschungs- und Entwicklungsaufwand abzukürzen und sich das Wissen der ausländischen "Barbaren“ zunutze zu machen.
    Nach der Gründung der Volksrepublik China, die im Jahre 1949 erfolgte, wurde diese unrühmliche Praxis nicht nur fortgesetzt, sondern noch erheblich verstärkt und ausgebaut. Lediglich während der sogenannten "Kulturrevolution“, die sich durch eine erschreckende Bildungs- und Wissenschaftsfeindlichkeit auszeichnete, ergab sich eine diesbezügliche Unterbrechung, die allerdings in der zweiten Hälfte der siebziger Jahre an ihr Ende gelangte. Von da an potenzierten sich die chinesischen Anstrengungen zum Informationsabgriff in den natur- und ingenieurwissenschaftlichen Forschungseinrichtungen des Westens, die nun mit allen Mitteln vorangetrieben wurden.
    Von der nationalen über die provinzielle bis hinunter zur kommunalen Ebene entstanden in China Institutionen, die bis heute ausschließlich damit beschäftigt sind, westliche Fachzeitschriften, Arbeitspapiere, Konferenzbeiträge, Patentanmeldungen usw., zu sammeln, zu übersetzen und auszuwerten. Danach werden die Resultate den einheimischen Firmen, die primär in der Hochtechnologie und Rüstung tätig sind, zur weiteren Verwendung bereitgestellt.

    Auch international operierende Unternehmen, die in der Volksrepublik Geschäfte machen wollen, müssen dazu bereit sein, ihr technologisches Know-how teilweise offenzulegen. Ansonsten drohen ihnen staatlich sanktionierte Strafmaßnahmen, die ihre Wettbewerbsfähigkeit auf dem chinesischen Markt ganz erheblich einschränken können.
    Die großzügige Förderung von chinesisch-stämmigen Wissenschaftlern und Experten, die in anderen Ländern leben, gehört ebenfalls zum Arsenal von Maos Nachfolgern. Diese Spezialisten sollen zum einen dazu animiert werden, sich zu Lehr- und Forschungsaufenthalten temporär oder dauerhaft in China niederzulassen. Zum anderen werden sie dazu aufgefordert, ihre alte Heimat aus der Ferne heraus zu unterstützen. Ihr Patriotismus müsse sich auf das Herkunftsland ihrer Vorfahren und Verwandten beziehen; unabhängig davon, wo sie gerade ihren Hauptwohnsitz haben oder über welche Staatsangehörigkeit sie verfügen.
    Es überrascht deshalb nicht, dass diese Personengruppe von den chinesischen Auslandsvertretungen hofiert wird. Die Botschaften und Konsulate der Volksrepublik organisieren gut besuchte Veranstaltungen, die alleine dem Zweck dienen, dass Zusammenwirken und die Kooperationsbereitschaft zwischen der chinesisch-stämmigen Hightech-Elite und ihrem Mutterland zu fördern. Selbst deren Berufs- und Fachverbände, die sie etwa in den Vereinigten Staaten mit beachtlichem Erfolg zum gemeinsamen Wissens- und Informationsaustausch betreiben, weisen formelle und/oder informelle Verbindungen zu staatlichen Stellen in China auf.

    Beim Kampf an der Hochtechnologie-Front kommt natürlich auch die klassische Spionage zum Einsatz. Im Gegensatz zu vielen ihrer Kollegen betonen Hannas, Mulvenon und Puglisi, dass sich Peking hierbei kaum anders verhält, als es in nachrichtendienstlichen Kreisen üblich ist. Die chinesische Seite setzt bei der Informationsbeschaffung von geheimen Daten gleichfalls auf Geld, Bestechung, Erpressung und sonstige Druckmittel, wie sie seit Ewigkeiten im zweitältesten Gewerbe der Welt zur Anwendung gelangen.
    Die Volksrepublik wendet sich hierbei keineswegs nur an chinesisch-stämmige Personen. Wichtig ist vielmehr, dass die angeworbenen Spione über die richtigen Zugangsberechtigungen verfügen, um die benötigten Informationen zu beschaffen.
    Ein riesiges Betätigungsfeld ergibt sich heute außerdem im Cyber-Raum. China nutzt die Möglichkeiten zum ausspionieren von klassifizierten Daten über die moderne Netzwerkkommunikation besonders intensiv. In den letzten Jahren sind immer wieder Fälle bekannt geworden, wo es chinesischen Hackern gelungen ist, in mehr oder weniger gut geschützte Systeme einzudringen und sich dort ungestört nach brauchbaren Informationen umzusehen.
    Wenn es darum geht, wie man sich gegen die angeführten Methoden zur Informationsabschöpfung wehren kann, bleiben Hannas, Mulvenon und Puglisi leider etwas zu oberflächlich. So schlagen sie z. B. vor, die Exportkontrollen für sensible Technologien zu verschärfen. Dies wäre zwar wünschenswert, dürfte aber kaum ausreichend sein, um den unerwünschten Innovationstransfer nach China wirksam zu unterbinden.
    Davon abgesehen ist das Buch der drei Autoren absolut Empfehlenswert. Es öffnet dem Leser die Augen über eine Thematik, die bislang in der Öffentlichkeit viel zu wenig beachtet worden ist.

    Jürgen Rupp
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  • Amazon Customer
    5.0 out of 5 stars Good book
    Reviewed in Canada on December 5, 2019
    Very good book to have
  • heffer_bee_i
    5.0 out of 5 stars Five Stars
    Reviewed in the United Kingdom on February 7, 2016
    prob the only detailed assessment of its kind outside the intelligence community. required reading if this is ur area.