US panel warns of China's hidden influence
Washington, June 27
A bipartisan Congressional panel has warned that China is expanding its economic espionage and political influence operations far beyond Washington, targeting state governments, universities, businesses and local communities across the United States through an increasingly sophisticated campaign to advance Beijing's strategic interests.
At a hearing of the House Select Committee on the Chinese Communist Party, lawmakers from both parties agreed that China poses a growing challenge to US economic and national security. They also stressed the need to distinguish the actions of the Chinese government from those of Chinese Americans, cautioning against policies that could fuel discrimination.
Committee Chairman John Moolenaar said the Chinese Communist Party (CCP) was engaged in "an epic campaign to undermine the United States here at home", spanning economic espionage, cyber intrusions, influence operations, covert lobbying and transnational repression.
"The CCP does not distinguish between national and subnational targets," Moolenaar said. "State legislatures, municipal governments, school boards, public universities, local businesses and community associations are all soft targets." He said Beijing increasingly used trade partnerships, academic exchanges, investment initiatives and community organisations to gain access, collect strategic information and influence local decision-making.
He called for closer coordination between federal, state and local authorities, saying local leaders needed better guidance to identify attempts at manipulation while preserving legitimate cultural and commercial exchanges.
The committee's ranking Democrat, Congressman Ro Khanna, agreed that China's theft of American intellectual property required a strong response but warned against equating Beijing's actions with Chinese Americans.
"It is undisputed that they have stolen intellectual property from American manufacturers," Khanna said. "We need to stop that."
At the same time, he said the United States should not repeat past episodes of discrimination against Asian Americans.
"I am very, very passionate... that as we look at the legitimate threats that Chinese government poses to America's economic independence, we do not in any way conflate it with the harassment of Chinese immigrants, of Chinese Americans, of Chinese students, and we recognise the incredible value and role that they play in the United States," Khanna said.
Former Acting Director of the Defence Intelligence Agency David Shedd told lawmakers that Beijing had built an extensive system to acquire American technology through cyber espionage, academic collaboration, commercial investments and intelligence operations.
"The campaign which blends cyber espionage, human intelligence, academic collaboration, and commercial investments has been instrumental in propelling China's rapid economic and military rise," Shedd said. He argued that the campaign had enabled China to accelerate advances in areas including artificial intelligence, quantum computing, biotechnology and telecommunications.
Michael Lucci, founder and chief executive of State Armor, said US states had become the "front lines" of strategic competition with China. He cited concerns over land purchases near military installations, influence operations targeting state legislatures, university research partnerships and cyber threats against local governments.
John C. Yang, president and executive director of Asian Americans Advancing Justice, acknowledged that China posed real national security challenges but urged lawmakers to pursue evidence-based enforcement rather than policies tied to ethnicity.
"A targeted approach is not necessarily a softer approach," Yang said. "Rather, it is a more effective one." He warned that overly broad measures could discourage scientists, students and entrepreneurs from contributing to the United States while doing little to strengthen national security.
The hearing reflected growing bipartisan concern in Washington over China's efforts to acquire advanced technologies, influence political institutions and expand its strategic reach inside the United States. Congress has increasingly scrutinised Chinese investments, research partnerships and technology transfers while strengthening restrictions on sensitive exports and critical infrastructure.
— IANS
Reader Comments
The US is finally getting it! China's "debt trap diplomacy" and tech theft are well documented. But what about their influence in Indian Ocean region? They are building military bases all around us. The US should coordinate more with India on this. We have firsthand knowledge of Chinese tactics 🙏
This is a delicate balancing act. Yes, China's government does engage in espionage and influence operations. But we must remember that Chinese Americans are fellow citizens who contribute enormously to US society. The same way Indian Americans contribute. Let's not repeat the mistakes of World War II when Japanese Americans were interned. That was a dark chapter.
As an American with Indian heritage, I see both sides. China's theft of IP is serious - my cousin's startup lost a patent to a Chinese company. But the committee is right that we need evidence-based policies. Targeting Chinese Americans would be counterproductive. Many of them are our best scientists and entrepreneurs.
I'm curious why Indian media doesn't cover this more. China's influence in India through investments in Sri Lanka, Bangladesh, Pakistan is massive. They are using the same playbook everywhere. But the US has more resources to fight back. India needs to learn from this hearing. Also, kudos to Rep. Khanna for his balanced stance 👏
The point about local governments being "soft targets" is crucial. In India too, Chinese firms are buying land near sensitive installations. We need similar federal-state coordination. But I hope the US doesn't
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.