“I still don't think America has woken up on how serious the problem is,” Shedd told Raw Story.
“We’ve got to take this much more seriously, but also much more urgently, in terms of responding to the threats, because I don't see any let-up by China.”
David R. Shedd (provided photo)
From nanotechnology to chip manufacturing and artificial intelligence, Shedd said, China succeeded in accomplishing ahead of time eight of 10 objectives under “Made in China 2025,” a 10-year national strategic plan by President Xi Jinping to turn his country into a global technology and manufacturing powerhouse.
China is now the leader in 37 out of 44 emerging critical technologies, according to Shedd and Badger.
“They are on a trajectory to overtake us and have overtaken us already in a number of areas, and that's only going to get worse,” Shedd said.
‘An enormous behemoth’
Shedd and Badger interviewed William Evanina, former director of the U.S. National Counterintelligence and Security Center. He offered insight into the use of LinkedIn by China’s Ministry of State Security (MSS) and People’s Liberation Army (PLA) to contact intelligence targets.
Andrew Badger (photo provided by David Shedd)
“This astounding number — never before reported— showcases Beijing's commitment to mass recruitment that can be best described as a ‘flood the zone’ strategy,” the authors write.
“The MSS doesn't need all its targets to respond. Just a handful can be enough; a single successful recruit can make the entire endeavor worthwhile.”
Examples of LinkedIn outreach might include contacting an academic about writing a research paper or meeting a worker at a coffee shop to discuss their expertise, exchanges possibly unknowingly resulting in intelligence reported back to the MSS, the authors write.
“The MSS is the CIA, the FBI, the National Security Agency, Cyber Command and all other cyber components,” Shedd said.
“It is an enormous behemoth of internal or domestic and international security, and over the … last 13 years, it has become one, if not a premier, service in terms of its capabilities.”
In response to Raw Story’s questions about the use of LinkedIn by the MSS and PLA, Autumn Cobb, a LinkedIn spokesperson, shared links about verification and spotting scams.
‘Threatens lives’
When it comes to China stealing intellectual property from Americans, the stakes are high.
“American military technologies once considered strategic advantages — stealth aircraft, silent propulsion systems, hypersonic missile platforms – are now widely found in the inventories of China’s armed forces,” Shedd and Badger write.
“These thefts are not abstract; they represent the very real threats to the American warfighters who one day may have to face down such advanced technology. The theft of these assets doesn't just threaten markets; it threatens lives.”
Corporations are also threatened.
When Tesla became the first foreign-owned automaker in China, with CEO Elon Musk building a factory in Shanghai from 2019, concerns rose about theft of intellectual property.
The Great Heist (provided image)
Shedd and Badger quote a former senior Tesla staffer: “Elon always worried about the so-called billion-dollar thumb drive. A single USB stick with the Autopilot source code. That was the nightmare.”
Tesla did not respond to a request for comment.
‘National security at stake’
Since President Donald Trump returned to the White House, Shedd said, an apparent “diminishment” of U.S national security policies on China has been observable, compared to the first Trump administration, which took China more seriously.
Shedd speculated that the shift has to do with China’s control of the majority of rare earth minerals, which are used in magnets manufacturing and technology.
President Xi is definitely watching how Trump has made taking over Greenland a priority, as well as Trump’s decision to “run” Venezuela after capturing President Nicolás Maduro and his wife, Shedd said.
“My fear is the administration has turned it into everything's transactional,” Shedd said.
“Our national security is at stake, and I … fully expect Xi Jinping to move on Taiwan next year.”
Taiwan is a major U.S. trading partner. In December, the Trump administration announced the largest-ever U.S. arms package for Taiwan, valued at $11 billion.
‘Great Heist’
Prior to Trump’s arrival in the White House, Chinese threats to American intelligence and national security were not a priority for the FBI or DIA, Shedd said.
During his tenure at DIA from 2010 to 2015, Shedd said, much of the agency’s focus was on wars in Iraq and Afghanistan, concerns which became “all consuming.”
“There was this almost fear of taking on China operationally, and to really focus in on it was viewed in the FBI counterintelligence as second-rate to Russia,” Shedd said.
“China, I won't say it was a total afterthought, but it certainly wasn't the main focus.”
Shedd and Badger’s book explains how China pulled off its theft of so many American ideas, tracing the effort back to when President Bill Clinton advocated for China to join the World Trade Organization (WTO).
When China joined the WTO in 2001, both Democrats and Republicans had a “naivety” that China would “play by the rules of international trade,” Shedd said.
That set the stage for a flood of Chinese-made, cheaper versions of other country’s products.
“It was framed as diplomacy, as engagement with a potential trading partner, possibly even a future ally,” Shedd and Badger write.
“In hindsight, it was the moment the proverbial virus entered the global trade system and the launching pad for the CCP’s Great Heist against America.”
In 2017, China’s National Intelligence Law legalized espionage, meaning citizens could be required to spy for the CCP.
‘Counter Heist’
To take on China, Shedd said, the U.S. must invest in research and development as well as Science, Technology, Engineering and Mathematics (STEM) education, in which China is "leaping way ahead of us.”
Shedd and Badger also outline a seven-pillar “Counter Heist” strategy to put America on an “active counteroffensive” against China and disrupt the “Chinese espionage apparatus and to reassert America’s place as the world’s innovation superpower.”
If Washington doesn’t get ahead of Beijing’s spying, Shedd said, he fears China will beat the U.S. to a quantum computing breakthrough that will decode all cryptology.
“It will have enormous, dramatic implications for the United States and for the west more generally, and we won't ever have seen it coming,” Shedd said.
The Great Heist is out now
