Panel: Chinese Spies Stealing U.S. Secrets

(AP)  A U.S. congressional advisory panel said Thursday that Chinese spies are aggressively stealing American secrets to use in building Beijing's military and economic strength.

The U.S.-China Economic and Security Review Commission also said in its annual report to lawmakers that Beijing is building a navy that could block the U.S. military from getting to the region if fighting should break out between China and Taiwan, the self-governing island off China's southeastern coast that China claims as its own.

The report follows President Barack Obama's visit this week to China, where he had extensive talks with President Hu Jintao. The commission tends to take a tougher stance on China than either Mr. Obama or his predecessor, George W. Bush. Mr. Obama wants to nurture ties with a country the United States needs to deal with some of the world's toughest crises, including nuclear standoffs with Iran and North Korea, climate change and global economic recovery.

Read about President Obama's Visit to China:

Photo Essay: Obama at the Great Wall of China
Obama Calls Great Wall "Magical"
Obama Reunites with Half-Brother in China
Obama Stresses Cooperation With Hu, China
Obama Takes in the Sights of Beijing
President Obama, Can We Twitter?

The commission, set up by Congress in 2000 to advise, investigate and report on U.S.-China affairs, said U.S. officials believe Chinese spying is "growing in scale, intensity and sophistication."

"China is the most aggressive country conducting espionage against the United States," the report said.

Wang Baodong, spokesman for the Chinese Embassy in Washington, called the spying allegations "baseless, unwarranted and irresponsible."

He called the commission's suggestion that China's navy is being built up to challenge the United States in the Pacific a "Cold War fantasy." Beijing's military spending, he said, is only a fraction of Washington's.

Quiet Fight to Free American Imprisoned in China for Espionage

More generally, Wang accused the commission of recycling old, unproven allegations and issuing an annual report "aimed at misleading the American public."

The report said China was the origin of much of the rise in malicious computer attacks against the United States in 2009.

China's increased targeting of U.S. government and defense computer systems, the report said, could "destroy critical infrastructure, disrupt commerce and banking systems and compromise sensitive defense and military data."

Among the commission's recommendations are for Congress to review the U.S. ability to meet the "rising challenge" of Chinese spying and to fend off computer attacks.

Congress, the commission said, also should urge the Obama administration to push harder for China to reduce the number of missiles and forces opposite Taiwan.

[babooph]

Surely they do not try to steal US banking or insurance secrets-why bankrupt their nation?

[longtree-2009]

no, this can't be true. obama is over there kissing chinese behinds. besides the chinese have bought our debt, loaned the usa tons of money. chinese are coming here from the mainland and buying up real estate, moving in and bringing extended family. chinese are here legally and illegally. if it weren't for communist china the usa would be in deep weeds and there would be no products on store shelves. besides everyone knows we have to fear more from the mexican illegals then the chinese who are slowly taking over the usa without firing a shot. so this story can't be true.

[rightbehind]

You can thank the republican free trade ideology for this. China wasn't a threat before the republicans had their time. You can bet they are a threat now! Just where is almost every product you buy these days made? 18 more republican senate seats on the ballot in 2010. Lets send them all packing along with some republicrats.

[geewheeez]

I want to see the report that shows US spying to the other parts of the world, or does commission intend to say that US do not spy and hack.

[fer60us]

Let's see, a lot of people is afraid of illegal immigration or immigration in general; they feel that almost any person that looks as an Hispanic immigrant is a threat to the economy. Usually, illegal immigrants come to work on the fields or on the service industry, nothing fancy or high-tech. But what about illegal or legal immigrants from China, India, etc.? They are coming to our universities and high-tech companies to work. I don't think Mexico or any other Latin American country for that matter is a threat but what about China, India, etc.? But of course, as soon as these Chinese or Indi immigrants or students have money to pay the over-rated universities (displacing a lot of Amercian kids and cutting their chances to get a well paid job) everybody is happy or what about the cool factor to hire them at these h-t companies? We are digging our own crave. Instead of going after poor immigrants which fill up jobs to provide required services we should pay attention to other people coming to get educated displacing Americans at well paid jobs and/or transferring or stealing technology for their countries. But seems like we are blind or don't want to see this process; yet again, greediness is behind this and soon we may regret it.

[liberalme]

The higher end store you shop in, the higher the prices are---and more profits for that overseas corporation.

People love to spend top dollar on clothes made overseas and wouldn't be caught dead in Walmart because they sell stuff from China--Go figure--no wonder some of these countries think Americans are stupid--we are!!!!

[Overruled1]

nO NO No.....wE have simple been betrayed by those in power to make decisions in backroom deals and government stooges on the take by corporations....it has a name......treason....the people that do this have long been known to exist....fascists. Some are decendants of NAZI criminals that got away.
We have been betrayed and mislead. The only people that are stupid are the ones NOT out protesting and actually making waves to expose the corruption and demand prosecution. If prosecution is not "on the table",
its' then time to step away from politics and arm your malitia to the teeth. The rest is up to you.

[Xamkr]

This is why we can't use for-profit contractors for our intelligence work. Intelligence = money, and China outbid us.

[myopinionpal]

Nothing new its been going on for eons.

[steeepe]

First they steal our jobs with the help of U.S. companies and "free" trade policies, and now they steal our secrets. And they own our debt.

[Turbidite]

Is this what is called "a ***** in our armor"? Sorry, sorry, I know that is poliitically incorrect, but I couldn't resist. I have been aware of this problem ever since Nixon/Kissinger went to China to encourage business & cultural ties back in 1972. After that our industries were swamped with Chinese technocrats evaluating license opportunities (read inustrial espionage) with large, international corporations in the USA. Everytime I or my colleagues mentioned that these "guest" were copynig down everything (patents & copyright) we were told that simply was not the case. After Mao died they tried the same thing in the USSR and were promtly sent back home.