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MOFCOM Spokesperson’s Remarks on a Senior CIA Official’s Public Statement on Conducting Espionage Against China

Q: Michael Ellis, Deputy Director of the Central Intelligence Agency (CIA) of the United States, recently publicly said that the U. S. is engaging in a broader range of espionage against China, including Chinese enterprises, in response to China’s “dual threat” in the military and economic spheres, and in particular has listed Chinese enterprises in artificial intelligence, semiconductors, biotechnology and other fields as legitimate intelligence targets. What is China’s comment on this?

A: We have noted the relevant developments. The U.S. has bluntly declared Chinese enterprises to be legitimate intelligence targets, completely tearing off the fig leaf that once concealed intelligence agencies’ covert theft, and laying bare the bandit logic of hegemony. China expresses grave concerns and firm opposition to this.

The U.S. act wantonly undermines fair competition. Economic competition is a normal part of commercial activity, and a leading edge is achieved through technology, talent and innovation. The U.S. overstretches the concept of national security, confuses the boundary between competition and security, and even defines economic competition as a so-called “threat”. In essence, this is driven by the Cold War mentality of zero-sum game. U.S. intelligence agencies have stepped in to interfere with normal economic competition, and such practices rave seriously damaged the business expectations of enterprises of all countries and undermined the global market environment for fair competition.

The U.S. act is a typical case of saying one thing while doing the opposite. On the one hand, in 2014, the U.S. issued Presidential Policy Directive 28 (PPD-28), which explicitly stipulated that intelligence activities shall not collect foreign private commercial information or trade secrets to afford a competitive advantage to U.S. companies and U.S. business sectors. In 2022, the U.S. issued Executive Order 14086, which reaffirmed the above restriction. However, the U.S. has ignored its own self-imposed boundaries. U.S. intelligence agencies have conducted large-scale cyber theft and intelligence theft against countries around the world, making the U.S. the world’s number one country in terms of espionage. Now it has even brazenly declared that anything constituting economic competition may be regarded as a legitimate intelligence target, which is a blatant trampling of international trade rules and intellectual property protection norms. On the other hand, the U.S. has long falsely accused other trading partners of harming U.S. interests through intelligence theft, yet now it characterizes its own espionage activities as legitimate and reasonable. This is clearly a typical act of double standards.

The U.S. act constitutes suppression and smearing of China. The U.S. claim that China poses a “dual threat” in the military and economic spheres is completely a bandit rhetoric that confuses right and wrong and malicious slandering with ulterior motives. China’s technological breakthroughs in artificial intelligence, semiconductors, biotechnology and other fields are the results of the hard work of Chinese researchers and enterprises, and are by no means prey that U.S. intelligence agencies can covet at will. The U.S. conduct is, in essence, rooted in anxiety over China’s scientific and technological progress, but espionage, theft and hegemonic suppression cannot stop the pace of innovation of Chinese enterprises, nor can the U.S. win true technological leadership. The brazen scheme of theft of the U.S. is doomed to fail.

China solemnly informs the U.S. to immediately stop espionage activities against China, including Chinese enterprises, and stop all acts that harm China’s sovereignty, security and development interests. China has firm will and ample means. In accordance with the Counterespionage Law of the People’s Republic of China and other laws and regulations, China will resolutely take necessary measures, severely punish illegal and criminal acts, and firmly safeguard the legitimate rights and interests of Chinese enterprises. (Released on September 11)