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What China plans to steal

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risky biz

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Oct 22, 2021, 3:45:01 PM10/22/21
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'U.S. intelligence officials have issued a stark warning: America's status as a global superpower depends on maintaining a lead in five key technologies – and America's rivals are trying to steal every one of them.

Officials said they are concerned that foreign theft of American technologies could not only rob the United States of economic leadership in the key sectors, but could threaten the country's ability to even remain active in the industries at all.

The five technologies identified by intelligence officials are:

Artificial intelligence
Quantum computing
Bioscience
Semiconductors
Autonomous systems

Officials cited legal and illegal activities, particularly those conducted by China, that have crippled competitiveness in sectors such as steel and solar panels. They also pointed to China's wipeout of the Australian rail industry as an example.

In a new report, the NCSC wrote that "these sectors produce technologies that may determine whether America remains the world's leading superpower or is eclipsed by strategic competitors in the next few years."

In each area, officials said, adversary nations have used a blend of legal and illegal methods – ranging from hiring talent to mergers and acquisitions to hacking and old-fashioned spycraft – to steal and replicate American technology.

An overall area of concern is the United States losing its ability to develop and manufacture its own supply chain of biological and health care supplies — a vulnerability that became all too clear during the Covid-19 pandemic and could be even worse during the next one, according to You.

"We're dependent on them," he said. "They could develop a countermeasure before anybody else does. An effective defense is the equivalent of an offense. They can withhold supply like they did with masks. They have all the strategic advantages."

Artificial intelligence
The report found that China "possesses the might, talent and ambition to potentially surpass the U.S. as the world's leader in AI in the next decade if current trends do not change." Officials cited the 2020 U.S. indictment of two Chinese hackers working with the Chinese Ministry of State Security for their part in a 10-year hacking campaign against a wide range of Western targets, including a UK-based AI firm.

Officials also expressed concern about Russia, citing MIT's 2019 announcement that it would extend its partnership with Russia's Skolkovo Institute of Science and Technology and the Skolkovo Foundation. MIT said the partnership would focus on "strengthening research collaborations between individual faculty members at the two institutions."

American officials pointed out that the U.S. Treasury Department imposed sanctions on Viktor Vekselberg, who headed the Skolkovo Foundation, in 2018. (The university removed him from its Board of Trustees after the sanctions announcement.)

Quantum computing
The intelligence community report found that quantum computers — which can, in principle, use the unique properties of atoms and photons to solve certain problems much faster than ordinary computers — will pose national security and economic challenges.

"A large scale quantum computer could potentially allow for the decryption of most commonly used cybersecurity protocols, putting at risk the infrastructure protecting today's economic and national security communications," the report said.

In the race to develop practical quantum computers, the officials said, the winner will have a tremendous strategic advantage. The report noted that foreign competitors are recruiting American experts to advance their own quantum programs.

"Whoever acquires a quantum computer can break every encryption system we have here," said Orlando. "And quantum radars can detect our stealth aircraft and submarines."

Bioscience
Officials were particularly critical of China's WuXi Biologics, which purchased Bayer's manufacturing plant in Germany, Pfizer's manufacturing plant in China and CMAB Biopharma Group in China. The Chinese company is also building manufacturing plants in Delaware, Massachusetts and Ireland.

Because of the company's enormous manufacturing capacity, American bioscience companies that produce vaccines and other biotech products may find themselves using Chinese controlled plants by default. "They don't have to steal our intellectual property anymore," said You.

"If you want to scale manufacturing, we're dependent on Chinese manufacturing, so we're going to have to give them the IP [to produce the products]."
Semiconductors

The fragile nature of the semiconductor supply chain is well known, but the report found that the U.S. is heavily dependent on a single company in Taiwan. It also found that adversaries can get access to the supply chain and put compromised chips in U.S. commercial and defense systems.

Officials singled out a wave of Chinese acquisitions in the space, including Chinese private equity firm Wise Road Capital March purchase of South Korea-based MagnaChip for $1.4 billion.

Autonomous systems
The report concluded that autonomous systems also present a potential security threat, by expanding the type of target hackers will be able to go after in the future and by gathering an enormous amount of data on drivers in the United States.

Officials cited a September report that the Chinese had illegally purchased an Italian-based military drone company in an effort to gather autonomous technology. Officials flagged the 2019 arrest of a former Apple employee who was charged with stealing autonomous vehicle secrets from Apple with plans to pass them to a Chinese competitor.'
https://www.cnbc.com/2021/10/22/america-must-protect-5-crucial-technologies-to-remain-superpower-officials-warn.html

BillB

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Oct 22, 2021, 3:55:45 PM10/22/21
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On Friday, October 22, 2021 at 12:45:01 PM UTC-7, risky biz wrote:


> In each area, officials said, adversary nations have used a blend of legal and illegal methods – ranging from hiring talent to mergers and acquisitions to hacking and old-fashioned spycraft – to steal and replicate American technology.
>

At least we can sleep at night knowing the US would never engage in such nasty behavior. lol

risky biz

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Oct 22, 2021, 4:33:23 PM10/22/21
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On Friday, October 22, 2021 at 12:55:45 PM UTC-7, BillB wrote:
> On Friday, October 22, 2021 at 12:45:01 PM UTC-7, risky biz wrote:
>
>
> > In each area, officials said, adversary nations have used a blend of legal and illegal methods – ranging from hiring talent to mergers and acquisitions to hacking and old-fashioned spycraft – to steal and replicate American technology.
> >

~ At least we can sleep at night knowing the US would never engage in such nasty behavior. lol

I don't think anyone needed further confirmation from you of your soft spot for a totalitarian dictatorship that rivals Nazi Germany.

BillB

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Oct 22, 2021, 4:45:03 PM10/22/21
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I don't think the US is *that* bad, but I do have a soft spot for it.

risky biz

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Oct 22, 2021, 4:58:38 PM10/22/21
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~ I don't think the US is *that* bad, but I do have a soft spot for it.

You're all soft spot, you defective POS.

Tim Norfolk

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Oct 22, 2021, 9:06:35 PM10/22/21
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A very large percentage of the problem includes US companies and the government cutting back on R&D, companies "increasing shareholder value" by intentionally exporting critical production, and stifling funding for STEM education.
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