Pentagon: China Threatened to Bankrupt Defense Contractor

Not only is espionage in the form of technology theft a serious issue, but the Chinese have also been manufacturing microchips Americans use [i.e. Huewei smartphones — founded by a PLA engineer on behest of the CCP (See also HERE)]… and it’s not limited to the average American consumer, but the U.S. military as well.

 

U.S. President Barack Obama walks past Chinese President Xi Jinping / AP

 

Incident involving jet fighter logistics highlights aggressive Chinese cyber espionage

A U.S. defense contractor was threatened with bankruptcy by Chinese hackers seeking jet fighter logistics secrets, according to the Pentagon’s Joint Staff.

A report earlier this month by the Joint Staff’s J-2 intelligence directorate revealed that the American contractor, a company involved in classified defense work, was threatened by Chinese hackers, according to Pentagon officials familiar with the report.

The Chinese demanded access to the company’s intellectual property, and said unless the company secrets were provided, China would steal the data, reverse engineer it, and then sell it internationally in a bid to force the company into bankruptcy.

China’s spies gain valuable US defense technology: report

US intelligence agencies have determined that China stole secrets relating to the F-35 jet fighter from a US contractor. Photo: Reuters

 

According to the annual report of the US-China Economic and Security Review Commission, Chinese cyber espionage is a “major problem” for America

China has gained military benefits in recent years from stealing defense secrets through industrial and cyber espionage carried out by its intelligence services, according to a US congressional report.

“In recent years, Chinese agents have extracted data on some of the most advanced weapons and weapons systems in the US arsenal, such as jet fighters and unmanned submersible vehicles,” states the annual report of the US-China Economic and Security Review Commission, released on November 16.

“The loss of these and other sensitive defense technologies undermines US military superiority by accelerating China’s military modernization and giving China insight into the capabilities and operation of US weapons and weapons systems,” the report adds.