Chinese Industrial Espionage: Technology Acquisition and Military Modernisation

448 Pages·2013·5.1 MB·English

by  William C. Hannas

Chinese Industrial Espionage
This new book is the first full account, inside or outside government, of China’s
efforts to acquire foreign technology.
Based on primary sources and meticulously researched, the book lays bare
China’s efforts to prosper technologically through others’ achievements. For
decades, China has operated an elaborate system to spot foreign technologies,
acquire them by all conceivable means, and convert them into weapons and
competitive goods – without compensating the owners. The director of the US
National Security Agency recently called it “the greatest transfer of wealth in
history.”
Written by two of America’s leading government analysts and an expert on
Chinese cyber networks, this book describes these transfer processes
comprehensively and in detail, providing the breadth and depth missing in other
works. Drawing upon previously unexploited Chinese language sources, the
authors begin by placing the new research within historical context, before
examining the People’s Republic of China’s policy support for economic
espionage, clandestine technology transfers, theft through cyberspace and its
impact on the future of the US.
This book will be of much interest to students of Chinese politics, Asian
security studies, US defense, US foreign policy and IR in general.
William C. Hannas has an MA from the University of Chicago in Chinese and
a PhD from the University of Pennsylvania in Asian languages. He served with
the US Navy and Joint Special Operations Command, taught at Georgetown
University, and holds a senior executive position in a component of the US
federal government. Hannas is author of Asia’s Orthographic Dilemma (1997)
and The Writing on the Wall: How Asian Orthography Curbs Creativity (2003).
James Mulvenon is Vice-President of Defense Group, Inc.’s Intelligence
Division and Director of DGI’s Center for Intelligence Research and Analysis.
Trained as a Chinese linguist, he is a leading expert on Chinese cyber issues, and
has published widely on Chinese military affairs, party-army relations, C4ISR,
and nuclear weapons doctrine and organizations. He has a PhD in political
science from the University of California, Los Angeles, and is author of Soldiers
of Fortune (2000).
Anna B. Puglisi has MA and MS degrees in public affairs and environmental
science, has worked in research and technical infrastructure, and now holds a
senior analyst position in a component of the US federal government. Ms.
Puglisi studied at the Princeton in Beijing Chinese language school and was a
visiting scholar in Nankai University’s Department of Economics, where she
studied China’s S&T policies, infrastructure development, and university
reforms.
Asian Security Studies
Series Editors: Sumit Ganguly, Indiana University,
Bloomington, Andrew Scobell, Research and Development (RAND)
Corporation, Santa Monica and Joseph Chinyong Liow,
Nanyang Technological University, Singapore.
Few regions of the world are fraught with as many security questions as Asia.
Within this region it is possible to study great power rivalries, irredentist
conflicts, nuclear and ballistic missile proliferation, secessionist movements,
ethnoreligious conflicts and inter-state wars. This book series publishes the best
possible scholarship on the security issues affecting the region, and includes
detailed empirical studies, theoretically oriented case studies and policy-relevant
analyses as well as more general works.
China and International Institutions
Alternate paths to global power
Marc Lanteigne China’s Rising Sea Power
The PLA Navy’s Submarine Challenge
Peter Howarth If China Attacks Taiwan
Military strategy, politics and economics
Edited by Steve Tsang Chinese Civil-Military Relations
The transformation of the People’s Liberation Army
Edited by Nan Li The Chinese Army Today
Tradition and transformation for the 21st Century
Dennis J. Blasko Taiwan’s Security
History and prospects
Bernard D. Cole Religion and Conflict in South and Southeast Asia
Disrupting violence
Edited by Linell E. Cady and Sheldon W. Simon Political Islam and Violence in
Indonesia
Zachary Abuza US-Indian Strategic Cooperation into the 21st Century
More than words
Edited by Sumit Ganguly, Brian Shoup and Andrew Scobell India, Pakistan and
the Secret Jihad
The covert war in Kashmir, 1947–2004
Praveen Swami China’s Strategic Culture and Foreign Policy Decision-
Making
Confucianism, leadership and war
Huiyun Feng Chinese Military Strategy in the Third Indochina War
The last Maoist war
Edward C. O’Dowd Asia Pacific Security
US, Australia and Japan and the New Security Triangle
Edited by William T. Tow, Mark J. Thomson, Yoshinobu Yamamoto and Satu P.
Limaye China, the United States, and Southeast Asia
Contending perspectives on politics, security, and economics
Edited by Evelyn Goh and Sheldon W. Simon Conflict and Cooperation in
Multi-Ethnic States
Institutional incentives, myths, and counter-balancing
Brian Shoup China’s War on Terrorism
Counterinsurgency, politics and internal security
Martin I. Wayne US Taiwan Policy
Constructing the triangle
Øystein Tunsjø Conflict Management, Security and Intervention in East Asia
Third-party mediation in regional conflict
Edited by Jacob Bercovitch, Kwei-Bo Huang, and Chung-Chian Teng South
Asia’s Cold War
Nuclear weapons and conflict in comparative perspective
Rajesh M. Basrur The Rise of China and International Security
America and Asia Respond
Edited by Kevin J. Cooney and Yoichiro Sato Nuclear Proliferation in South
Asia
Crisis behaviour and the bomb
Edited by Sumit Ganguly and S. Paul Kapur Nuclear Weapons and Conflict
Transformation
The case of India-Pakistan
Saira Khan Managing the China Challenge
Global Perspectives
Edited by Quansheng Zhao and Guoli Liu India and Counterinsurgency
Lessons learned
Edited by Sumit Ganguly and David P. Fidler Cooperative Security in the
Asia-Pacific
The ASEAN Regional Forum
Edited by Jürgen Haacke and Noel M. Morada US–China–EU Relations
Managing the new world order
Edited by Robert S. Ross, Øystein Tunsjø and Zhang Tuosheng China, Europe
and International Security
Interests, roles and prospects
Edited by Frans-Paul van der Putten and Chu Shulong Crime-Terror Nexus in
South Asia
States, security and non-state actors
Ryan Clarke US-Japan-North Korean Security Relations
Irrepressible Interests
Anthony DiFilippo Pakistan’s War on Terrorism
Strategies for Combating Jihadist Armed Groups since 9/11
Samir Puri Indian Foreign and Security Policy in South Asia
Regional power strategies
Sandra Destradi Sri Lanka and the Responsibility to Protect
Politics, ethnicity and genocide
Damien Kingsbury The Chinese Army Today, Second Edition
Tradition and transformation for the 21st century
Second edition
Dennis J. Blasko Understanding Security Practices in South Asia
Securitization Theory and the role of non-state actors
Monika Barthwal-Datta Autonomy and Ethnic Conflict in South and South-
East Asia
Edited by Rajat Ganguly Chinese Industrial Espionage
Technology acquisition and military modernization
William C. Hannas, James Mulvenon and Anna B. Puglisi Power Transition
and International Order in Asia
Issues and challenges
Edited by Peter Shearman
Chinese Industrial Espionage
Technology acquisition and military
modernization
William C. Hannas, James Mulvenon and Anna B. Puglisi
First published 2013
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business ©
2013 William C. Hannas, James Mulvenon and Anna B. Puglisi
The right of William C. Hannas, James Mulvenon and Anna B. Puglisi to be
identified as author of this work has been asserted by them in accordance with
sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilized in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be trademarks or registered
trademarks, and are used only for identification and explanation without intent to
infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library Library of
Congress Cataloging-in-Publication Data
Hannas, Wm. C., 1946—
Chinese industrial espionage:
technology acquisition and military modernisation /
William C. Hannas, James Mulvenon, and Anna B. Puglisi.
p. cm.—(Asian security studies)
Includes bibliographical references and index.
ISBN 978—0—415—82141—4 (hardback)—
ISBN 978—0—415—82142—1 (pbk.)—
ISBN 978—0—203—63017—4 (e-book)
1. Business intelligence—China. 2. Business intelligence—United States.
3. Technology transfer—China. 4. Technology transfer—United States.
I. Mulvenon,James C., 1970-II. Puglisi, Anna B. III. Title.
HD38.7.H363 2013
338.6—dc23
2012044273
ISBN13: 978–0–415–82141–4 (hbk)
ISBN13: 978–0–415–82142–1 (pbk)
ISBN13: 978–0–203–63017–4 (ebk) Typeset in Baskerville
by Swales & Willis Ltd, Exeter, Devon