2020 Democrats raise alarm about China's intellectual property theft

2020 Democrats raise alarm about China's intellectual property theft

Democratic presidential candidates raised concerns about China's theft of U.S. intellectual property at Thursday's debate, shining attention on an ongoing source of tension between the two countries. 

Former Vice President Joe BidenJoe BidenWarren warns Facebook may help reelect Trump 'and profit off of it' Trump accuses Biden of 'quid pro quo' hours after Mulvaney remarks Testimony from GOP diplomat complicates Trump defense MORE, Sen. Kamala HarrisKamala Devi HarrisCampaign aide replaces Trump with Kamala Harris in viral 'meltdown' photo Warren raised more money from Big Tech employees than other 2020 Democrats: Report Poll: Biden, Warren support remains unchanged after Democratic debate MORE (D-Calif.) and former tech entrepreneur Andrew YangAndrew YangWarren raised more money from Big Tech employees than other 2020 Democrats: Report Saagar Enjeti praises Yang for bringing threat of automation to forefront at Ohio debate Biden, Warren tied for lead in Iowa poll MORE all highlighted their worries about whether China is stealing U.S. intellectual property as they discussed the ongoing trade war between the two countries while promising to tackle the issue if elected president.

“The problem isn’t the trade deficit. The problem is they are stealing our intellectual property,” Biden said about China.

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Suspicions that hackers from the country are stealing innovation, trade and military secrets have contributed to tensions between the two countries.

According to the findings of a 2018 investigation by the Office of the U.S. Trade Representative, Chinese intellectual property theft costs the U.S. between $225 billion and $600 billion annually.

Multiple intelligence agencies have identified Chinese theft of intellectual property as a national security threat.

2018 report on foreign economic espionage from the National Counterintelligence and Security Center noted that China “could erode U.S. America’s long-term economic advantage” if its cyber-enabled theft of intellectual property continues. 

The annual Worldwide Threat Assessment published by the Office of the Director of National Intelligence in January expanded on the Chinese threat, with former Director of National Intelligence Dan CoatsDaniel (Dan) Ray Coats281 lobbyists have worked in Trump administration: report Former intelligence chief Coats rejoins law firm Remembering leaders who put country above party MORE emphasizing in the report that “China presents a persistent cyber espionage threat and a growing attack threat to our core military and critical infrastructure systems.” 

And a report from CNBC’s Global CFO Council, which represents around $5 trillion in market value across various sectors, found in March that 1 in 5 North American-based companies had been a victim of Chinese intellectual property theft in the past decade. 

The reported intellectual theft was cited by President TrumpDonald John TrumpDemocratic senator rips Trump's 'let them fight' remarks: 'Enough is enough' Warren warns Facebook may help reelect Trump 'and profit off of it' Trump touts Turkey cease-fire: 'Sometimes you have to let them fight' MORE as a reason to continue the ongoing trade war between the two countries, and the need to reduce Chinese theft of intellectual property is one of the few bipartisan areas of agreement on Capitol Hill. 

On Thursday, a group of lawmakers from both parties took steps to encourage the Department of Defense to shine a light on Chinese operations within the U.S., particularly cyber-espionage issues linked to military operations.

Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerTrump touts Turkey cease-fire: 'Sometimes you have to let them fight' Mattis responds to Trump criticism: 'I guess I'm the Meryl Streep of generals' Democrats vow to push for repeal of other Trump rules after loss on power plant rollback MORE (D-N.Y.), Sen. Tom CottonThomas (Tom) Bryant CottonLawmakers set to host fundraisers focused on Nats' World Series trip GOP warns Graham letter to Pelosi on impeachment could 'backfire' Zuckerberg defends meetings with conservative politicians, pundits MORE (R-Ark.), and Reps. Mike GallagherMichael (Mike) John GallagherOn The Money: Fed officials saw rising risk of recession | Ocasio-Cortez, Cruz blast NBA for 'outrageous' response to China | Prospects dim for trade breakthrough with China Ocasio-Cortez, Ted Cruz join colleagues blasting NBA for 'outrageous' response to China Showing consumers health care pricing could lower costs MORE (R-Wis.) and Ruben GallegoRuben GallegoOvernight Energy: Trump administration issues plan to reverse limits on logging in Tongass National Forest| Democrats inch closer to issuing subpoenas for Interior, EPA records| Trump's plan to boost ethanol miffs corn groups and the fossil fuel industry Trump administration issues plan to reverse limits on logging in Tongass National Forest 2020 Democrats raise alarm about China's intellectual property theft MORE (D-Ariz.) sent a letter to Defense Secretary Mark EsperMark EsperDemocrats want Mulvaney to testify in Trump impeachment probe Senators fear Syria damage 'irreversible' after Esper, Milley briefing Overnight Defense — Presented by Boeing — House passes resolution rebuking Trump over Syria | Sparks fly at White House meeting on Syria | Dems say Trump called Pelosi a 'third-rate politician' | Trump, Graham trade jabs MORE requesting he take steps to address Chinese threats.

They also specifically requested that the Defense Department publish a list of companies in the U.S. that are owned or operated by the Chinese military.

“The CCP [Chinese Communist Party] has adopted a strategy of ‘Military-Civilian fusion’ to achieve its national objectives, enlisting Chinese corporations and universities to harness emerging civilian technologies for military purposes,” the lawmakers wrote. 

“If Beijing cannot develop technology on its own, it attempts to steal it from the United States using cyber espionage, intelligence assets operating in the United States, and state-directed companies that acquire American firms to transfer proprietary information,” they added.

Other legislation in both the House and Senate introduced this year seeks to limit Chinese theft of intellectual property, most notably the House and Senate versions of the annual National Defense Authorization Act. 

Bills have also been separately introduced, such as the MICROCHIPS Act, which would assist in protecting the supply chain for critical technologies against Chinese threats. The bill, introduced in July by Sens. Mike CrapoMichael (Mike) Dean CrapoGOP requests update on criminal referrals prompted by 2018 Kavanaugh probe Nearing finish line, fight for cannabis banking bill shifts to the Senate On The Money: Trump strikes trade deal with Japan on farm goods | GOP senator to meet Trump amid spending stalemate | House passes cannabis banking bill | Judge issues one-day pause on subpoena for Trump's tax returns MORE (R-Idaho) and Mark WarnerMark Robert WarnerLawmakers set to host fundraisers focused on Nats' World Series trip The Hill's 12:30 Report: Washington mourns loss of Elijah Cummings Lawmakers from both sides of the aisle mourn Cummings MORE (D-Va.), has not seen action. 

Now 2020 Democrats are joining the fray.

Yang, who has made tech issues a major part of his presidential campaign, recalled at the debate how a CEO friend of his had seen "pirated U.S. intellectual property" being used by workers "to the tune of thousands of dollars per head."

Yang argued that he would make sure to pursue a deal with China "that addresses the concerns of American companies and producers.”

Harris, meanwhile, promised to hold China accountable.

“They steal our products, including our intellectual property. They dump substandard products into our economy. They need to be held accountable,” she said.