PR Newswire: How Hacking and Espionage Fuel China’s Growth

Expected sanctions by the Obama administration against several Chinese companies suggest that the Chinese regime’s economic rise has been built on theft—with the U.S. being its main victim.

Through more than two years of investigations, Epoch Times has uncovered the system that is sapping U.S. innovation to feed China’s state-run companies.

Epoch Times found that the research and development programs of China’s state-run companies rely on a system of theft guided by state policy and carried out by large departments of hackers and conventional spies in its military. Stolen information is processed by technology transfer centers under government offices and state universities, and then fed into businesses controlled by the Chinese leadership.

This system goes far beyond the current view of Chinese cybertheft, which until now has focused mainly on a single hacker unit in the Chinese military, Unit 61398, which had five of its officers indicted by the U.S. Justice Department in May 2014The details of this system are compiled for the first time in this report and accompanying infographic (

“This is a massive system that is siphoning American innovation to feed the growth of a totalitarian regime,” said Joshua Philipp, national security reporter at Epoch Times and author of the report. “This isn’t just a few hundred hackers attacking the United States. This is a systematic, full-scale operation carried out by the Chinese military, Chinese universities, and Chinese government offices with a network of hundreds of state-run reverse-engineering facilities in China and thousands of military front companies operating in the United States.”

This is the last of a four-part investigative series. Previous reports exposed the Chinese spy departments involved in economic theft (, domestic spying (, and murder-for-profit operations inside China(, and detailed how the Chinese regime’s cyberattacks against the United States began and developed.

See original post on PR Newswire.

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