No U.S. industry, large or small, is safe from economic espionage, according to Ryan Young, executive assistant director of the Federal Bureau of Investigation’s Intelligence Branch.
Though the defense and technology industries have historically been prime targets, the People’s Republic of China — America’s “greatest long-term threat” — has now “hit just about every industry we have.”
“In fact, the government of China is currently engaging in the largest and most sophisticated theft of intellectual property and expertise in the history of the world, and they intend to use these proprietary secrets to advance their own research in order to gain an economic and strategic edge against the United States,” Young said in his keynote address at the Potomac Officers Club’s 2024 Intel Summit on Thursday.
“From biotech to healthcare, to aviation and agriculture, to advanced technology such as AI, any trade secret is potentially vulnerable to theft by those who wish to illegally obtain innovations to increase their market share at a victim company’s expense,” Young said.
Economic espionage, he added, costs the U.S. hundreds of millions each year, and the PRC “knows the private sector represents our nation’s economic and scientific backbone and that they cannot keep pace with American innovation on their own merit.”
Beyond financial losses, economic espionage can also result in lost jobs and reduced work opportunities for Americans, decreased national power and weakened influence in industries under attack. It can also bring about new technological threats as foreign adversaries work to steal emerging technologies being developed by U.S. companies, such as quantum, which Young said nations could use to “defeat the cryptography underlying worldwide data encryption.”
There are several ways U.S. businesses can minimize these risks when working with China-based companies, such as identifying and strengthening protections around their most valuable assets, enhancing cybersecurity, monitoring abnormal employee behavior and getting to know their vendors well, Young said.
He urged companies doing so to work closely with the FBI, which has at least one private sector coordinator at every field office to help companies prepare for these threats. Strong relationships at the local level, he said, “will put us and keep us a step ahead of the threat.”
“The best way, the only way we can stay ahead of the current emerging threats is by working together,” said Young.
Don’t miss the Potomac Officers Club’s next event, the GovCon International Summit on Nov. 13! The event will give you the opportunity to hear from experts in the global government contracting space, so don’t wait to secure your spot. Visit the Potomac Officers Club website to learn more and register to attend.
