"Chinese Diplomat Called a Broker Stealing Technology"…US Government Issues 'Warning' [Reading Science]

-Release of Report by US Center for Strategic Security Technologies

Industrial spy. Stock photo. (Source=Google)

[Asia Economy Reporter Kim Bong-su] It has been revealed that China is utilizing its overseas diplomats as a kind of 'broker' to steal technology from the United States and other major countries.

According to the Ministry of Science and ICT on the 12th, the U.S. Center for Security and Emerging Technology (CSET) released an analysis report in May on the role played by science and technology diplomats stationed at embassies in China's overseas technology acquisition process.

According to the report, China deploys science and technology diplomats to embassies and consulates in 52 countries, including the United States, major European Union (EU) countries, Russia, Japan, and South Korea, to monitor technological developments in the host countries and identify investment opportunities for Chinese companies. These diplomats function as overseas branches of the International Cooperation Department under China's Ministry of Science and Technology. In other words, when the Chinese government communicates with domestic companies to select technological challenges hindering industrial development, these diplomats obtain information through local experts and organizations in the host country and facilitate investment or cooperation with universities and companies possessing the relevant technologies, thereby helping to acquire the technology.

They are particularly active in technology sectors set as development goals under China's 'Made in 2025' initiative. Key activity areas include biopharmaceuticals and medical devices (25.2%), information technology (17%), new materials (11.5%), new energy and automobiles (10.1%), agriculture (8.1%), machinery and robotics (6.5%), energy equipment (6.1%), and aerospace (2.3%). By country, activities are concentrated in Russia (112 cases), the United States (77 cases), the United Kingdom (62 cases), and Japan (57 cases). They primarily identify new technologies developed by companies (264 cases, 50% of total 642 cases) and universities (165 cases, 31%) and act as 'brokers' to connect these with Chinese companies for acquisition through investment and partnerships. It is also reported that the Chinese government has recently encouraged science and technology diplomats to expand their activities into next-generation technology fields such as aerospace, renewable energy, drones, 5G, and nuclear power to secure more specialized technologies and knowledge.

Source=Ministry of Science and ICT Weekly Trends

The presence of these science and technology diplomats is evaluated in the report as having played a successful role in China's acquisition of technology from major foreign countries so far. The report explains, "Chinese companies have caught up with and even surpassed U.S. companies in strategic industries such as 5G, artificial intelligence, and quantum computing," adding, "Some of the core reasons for this success are attributed to the science and technology diplomats, proving their effectiveness in securing foreign technology."

Foreign governments are uncomfortable with China's technology acquisition process. The report points out, "The United States and its allies must clearly understand the fundamental differences in how China approaches science, technology, and diplomacy," and notes, "Science and technology diplomats are an example of how the Chinese Communist Party expands its influence overseas in ways that are uncomfortable or unfamiliar to foreign governments."

This creates a 'tilted playing field' especially for foreign companies competing with Chinese companies in China or international markets. The report criticizes, "Chinese companies can more easily identify investment opportunities and purchase technology on better terms than foreign companies by leveraging government resources and infrastructure," and warns, "Foreign companies planning to do business in China may continue to be forced to transfer technology and will find it difficult to maintain competitiveness against Chinese companies supported by the government."

Additionally, it is pointed out that technologies leaked in this manner could threaten security and economic competitiveness, requiring vigilance from the target countries.