Cracking Down on Chinese Theft of U.S. Intellectual Property

This legislation, as described in the following article from today’s Wall Street Journal, might prove to be helpful depending on how well it is implemented. But it does not appear likely to stop all patterns of IP theft that I describe in my book, “The New Art of War: China’s Deep Strategy Inside the Unied States.” If a Chinese student obtained sensitive technology know-how through research at an American university and then joins a U.S. company, there is nothing to stop China’s Thousand Talents program from recruiting that person to return to China to use the knowledge. If the National Institutes of Health is considering a grant proposal and asks scientists, or peers, to review it, there is nothing to prevent a Chinese or Chinese-American scientist involved in the review from stealing the ideas and trying to develop them at a government-funded lab in China. Nonetheless, the legislation seems to signal that the United States is getting serious about stopping the flood of knowledge pouring out of our laboratories to support China’s economic and military ambitions.

Bill Aims to Stop Theft of U.S. University Research by China, Others

Proposed legislation follows alarms over China’s alleged attempts to tap U.S. research to bolster its national and economic security

Sen. Rob Portman (R., Ohio) is co-sponsor of a bill taking aim at China’s access to research at American universities. Mr. Portman, above, in Washington in February.

PHOTO: STEFANI REYNOLDS/ZUMA PRESS

WASHINGTON—New legislation aims to stop China and others from stealing U.S. taxpayer-funded research at universities by enhancing the authority of federal agencies to monitor and punish the schools and scientists.

The bill, which Sens. Rob Portman (R., Ohio) and Tom Carper (D., Del.) plan to introduce Wednesday, follows renewed alarms from the White House and U.S. agencies over Beijing’s alleged attempts to tap U.S. universities to boost China’s military and technological competitiveness.

The legislation doesn’t cite any foreign government by name, using instead the term “malign state actors.” The measure addresses findings by the Senate Permanent Subcommittee on Investigations, which the senators lead, that Beijing uses recruitment programs with generous funding to lure scientists and their knowledge to China and that U.S. universities have systematically failed to report foreign gifts as required by law.

“A lot of people are pointing fingers at China and saying China should change,” Mr. Portman said. “I’m not sure that will happen but I know we can do a number of things here to clean up our own house.”

Some U.S. university leaders have said the Trump administration’s concerns are hyperbolic and discriminatory and that there should be no restrictions on unclassified research.

Beijing has denied any systematic effort to steal U.S. scientific research, and Chinese state media have called American allegations of intellectual-property theft a political tool.

The legislation would give the State, Justice and Education Departments greater powers to police foreign researchers and American universities that accept U.S. and foreign grant money.

It would update the U.S. criminal code to make it illegal to submit a federal grant application that fails to disclose an applicant’s receipt of foreign money, according to a draft reviewed by The Wall Street Journal.

Without such a statute, prosecutors have often charged suspects with crimes such as fraud or filing false tax returns. Penalties would include fines, imprisonment of up to five years, and a five-year ban on receiving U.S. grants.

The bill also seeks to expand the State Department’s authority to deny visas to foreign graduate students and researchers. The department is currently permitted to do so if officials believe the applicant intends to export a controlled technology. Academic course work, conferences and basic research like that done at universities aren’t subject to export controls.

Under the draft, the State Department should take into account an applicant’s past or likely cooperation with governments seeking to undermine U.S. research.

Others are also proposing restrictions on Chinese researchers. Sen. Tom Cotton (R, Ark.) introduced a bill that would ban Chinese nationals from receiving visas for graduate or postgraduate studies in science, engineering and other fields. Last week, the White House ordered a ban on such researchers if they work or previously worked with Chinese entities abiding by a government policy to use civilian businesses and institutions to bolster the country’s defense.

The senators’ bill would also lower the reporting threshold for U.S. universities receiving foreign gifts and contacts to $50,000 from $250,000 and permit the Education Department to fine schools by as much as triple the value they fail to report.

The Education Department has said a national review launched in 2019 prompted universities to report more than $6.5 billion in previously undisclosed foreign funding.

The bill also would create an interagency Federal Research Security Council led by the Office of Management and Budget to develop grant-making policy.

 

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