Department Of Defense Report Claims China Is Stealing Federally-Funded Technology Research

A recent report coming from the Department of Defense discovered that China is taking strides to exploit federal programs to try and steal technology, with the document stating that “China, not the U.S., is the ultimate beneficiary of DoD and other [U. S. Government] research investments,” as reported by one U.S. senator.

Senator Joni Ernst (R-IA), who previously reviewed the report but claimed that she was not at liberty to share the report, stated this past Wednesday that many American companies that are benefitting from taxpayer funds issued by the Department of Defense and a few other groups to create new technology “are recruited by China to continue their work at institutions associated with People’s Liberation Army. The U.S. company is then dissolved and the research and intellectual property paid for U.S. tax dollars is transferred to a subsidiary in China.”

“Just like that, American-made ingenuity is shipped overseas to our leading global adversary … and we, the America taxpayers, are funding it! This isn’t just another case of intellectual property theft.  This ongoing scheme has national and economic security implications according to the Pentagon,” exclaimed Ernst — who holds a seat on the Senate committees on armed services and small business —  through a separate release.

In one particular instance, a researcher and co-founder of an American company was issued a set of four grants in order to develop drone and space technology. They were then recruited by officials within the Chinese government, shut down and fully dissolved their American company, and took to working for institutions with direct ties to the defense agency of the CCP, explained Ernst.

Tens of millions in tax dollars through similar grants were used to fund research that would only end up in the hands of the Chinese government due to a few “double-crossing companies,” she explained.

The report went on to state that the grantees were trying to exploit the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs as reported by Ernst. The senator chose to bring forth a new bill to change up the programs that has made its way through the Senate unanimously and is expected to see the same treatment in the House later this week.

This new bill pegs the reauthorization of funding for the two programs to a new requirement that the agencies involved take part in a risk assessment of grant applicants toi attempt to discover ties to Russia, China, North Korea, Iran, “or any other country determined to be a country of concern by the Secretary of State.” It also creates a requirement for the funding of applicants to disclose “individuals of the small business concern who are a party to any foreign talent recruitment program of any foreign country of concern, including the People’s Republic of China.”

“This has to stop right now,” stated Ernst.

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