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Western governments alarmed by China's innovative spying techniques.

Writer's picture: Sarah DixonSarah Dixon

Western governments alarmed by China's innovative spying techniques.
Western governments alarmed by China's innovative spying techniques.

Over the past decade, Xi Jinping has significantly advanced China's intelligence infrastructure by modernizing technology and enhancing coordination among the various national security agencies. This progress has been remarkable, prompting concern among Western governments.


China's primary intelligence operations are managed by two main entities: the People's Liberation Army (PLA) and the Ministry of State Security (MSS). Established in 1983, the MSS functions similarly to a combination of the Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI) in the United States, albeit with much more secrecy—evidenced by the fact that it doesn't even have a website.


The scale of China's espionage activities is extraordinary. Official estimates suggest that over 600,000 individuals are employed in this sector, enabling China to deploy an extensive network of spies worldwide to bolster its influence in various domains.


China's espionage efforts came under public scrutiny following the 2023 spy balloon incident in the US. The device was reportedly gathering environmental and climate data and may have been capturing footage of different areas within the country.


Corporate Espionage is Critical to China

China's espionage mission differs significantly from that of Western agencies. An FBI official noted that these agencies primarily aim to stabilize the country's regime, focusing on protecting the Communist Party (CCP) at all costs. They also heavily invest in corporate espionage to acquire advanced technology, bolstering their economy.


A Center for Strategic and International Studies (CSIS) report revealed that over half of espionage incidents in the U.S. were cyber-related, highlighting China's growing ability to infiltrate critical infrastructure in the digital age. Additionally, a study by the UK's MI5 underscored China's persistent efforts to recruit locals, with over 20,000 individuals targeted by Chinese spies on platforms like LinkedIn. Ken McCallum, MI5's head, described these as "epic" campaigns with serious national security and economic implications.


While the U.S. has traditionally led in intelligence gathering, experts agree that China is rapidly closing the gap. Christopher Johnson, a former CIA China analyst, observed an increase in espionage from both sides, particularly from China, which has become larger, more influential, and wealthier, allowing them to allocate more resources to these activities than before.


“Five Eyes” Security Chiefs Met to Discuss the Threat of Chinese Spies

China's expanding spy network has become a major source of tension with Western nations, especially the United States. Recent incidents, such as the spy balloon controversy and allegations of a Chinese spy facility in Cuba, have strained diplomatic efforts to enhance relations between the two superpowers.


Western nations are increasingly collaborating to counter Chinese intelligence activities. The unprecedented public meeting of security chiefs from the "Five Eyes" alliance (US, UK, Australia, Canada, and New Zealand) in California in 2022 was a strategic move to highlight the threat of Chinese espionage.


The heightened focus on Chinese intelligence activities has led to diplomatic incidents. For example, in 2023, the UK Foreign Office summoned China's ambassador after three individuals were accused of aiding Hong Kong's intelligence services.


Some countries have begun implementing new laws to combat foreign interference and espionage. Australia enacted legislation to counter political interference in 2018, while the UK introduced a new National Security Act in 2023. "Especially when dealing with powers that may not fully understand each other, that's where my agency plays a crucial role," said the head of MI6 regarding the agency's efforts to counter China's persistent spying campaigns.


These new laws grant security agencies increased powers to address foreign state interference. However, critics argue that these measures are overdue.


Companies Rarely Report Spying Incidents Amid Fears of Retaliation

A significant focus of China's intelligence operations is the acquisition of Western technology. Mike Burgess, head of the Australian Security and Intelligence Organisation (ASIO), highlights China's unique approach: “I rarely single out countries because, in terms of pure espionage, we engage in it too. However, commercial espionage is entirely different, which is why China is receiving special attention in this regard.” The threat of Chinese economic espionage has compelled Western companies to reevaluate their interactions with China. Despite this, many businesses hesitate to report incidents due to concerns about jeopardizing their market position in China. Western intelligence officials acknowledge that they were initially slow to grasp the full scope of the Chinese intelligence threat. Mike Burgess of ASIO admits, “I believe it has been ongoing for a long time, and collectively, we have overlooked it.”


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Misunderstandings Need to be Managed Appropriately to Avoid Dangerous Conflicts

As China enhances its intelligence operations and technological prowess, its spy network is poised to become a significant challenge for Western counter-intelligence agencies. Sir Richard Moore, head of the UK's MI6, cautions that misunderstandings, particularly regarding Taiwan or the South China Sea, could escalate into conflicts.


Intelligence officials highlight the necessity of maintaining open communication channels to reduce the risk of misunderstandings and potential conflicts. Sir Richard Moore underscores the importance of intelligence services in offering insights to navigate these challenges.


Western intelligence agencies face distinct hurdles in gathering intelligence on China. Extensive surveillance within China complicates traditional human intelligence efforts, while the country's reliance on domestic technology over Western systems makes it difficult for signals intelligence agencies like GCHQ and the NSA to penetrate.


Consequently, a Western official admits, "We really don’t know how the Chinese politburo thinks." As tensions mount, fostering coexistence and mutual understanding between China and the West is vital to prevent dangerous conflicts. This will necessitate careful diplomacy, effective intelligence gathering, and a nuanced approach to managing competing interests.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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