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FBI: China has 3000 espionage “front” companies in U.S.
China Reform Monitor ^ | 8/14/03

Posted on 08/18/2003 3:50:33 PM PDT by truthandlife

August 8:

The Federal Bureau of Investigation (FBI) said this week that China will be the greatest espionage threat to North America during the next 10 years to 15 years, reports Canada’s Asian Pacific Post. FBI Director Robert Mueller told the United States Congress that China has more than 3,000 "front" companies in America coordinating direct espionage efforts. Some of the thousands of Chinese visitors, students and business people who visit the United States each year also have a government intelligence task to perform, authorities say. "Left unchecked, such a situation could greatly undermine U.S. national security and U.S. military and economic advantage [in the Pacific region]," Mueller told Congress.

In Canada, intelligence reports indicate the number of Chinese front companies to be between 300 and 500. But unlike America, Canada’s China experts say the political climate in Ottawa is not conducive to cracking down on the threat. "Virtually all the recent prime ministers and Paul Martin – who is likely to be the next prime minister – have strong connections to China on personal, business and political fronts," said an intelligence analyst specializing in East Asian affairs. "They find it difficult to understand this threat... some just deny it," he said. For former Canadian Foreign Service officer Brian McAdam, this week's FBI warning reads like a passage out of a report he produced for the Canadian Security Intelligence Service (CSIS). McAdam worked on "Project Sidewinder" which was conducted by the CSIS and aided by the Royal Canadian Mounted Police between 1994 and 1996. That study mirrors this week's FBI assertions that China poses the most significant threat to North America.

August 12:

Citing national-security concerns, two Democratic lawmakers are trying to stop the transfer of materials from an Indiana factory that produces critical technology used in the guidance systems of U.S. "smart bombs" to the People's Republic of China, reports WorldNetDaily.com. The Magnequench factory (originally known as UGIMAG) was sold in August 2000 to a consortium that included Chinese interests. The factory is responsible for producing 80 percent of the rare-earth permanent magnets used in the guidance systems of U.S. smart bombs, according to lawmakers. On Aug. 1, the office of Rep. Pete Visclosky (D-Ind.), issued a statement indicating that he and Sen. Evan Bayh (D-Ind.) were mounting a "last-ditch" effort to halt the “transfer of sensitive defense technology to the People's Republic of China.”

August 13:

A new Pentagon report states that China has improved its missile force with U.S technology, reports Charles Smith in Newsmax.com. The improvements enable Chinese missiles to now accurately strike the U.S. military base at Okinawa with "satellite-aided guidance" navigation technology obtained from America. The Chinese army (PLA) developed a new version of its DF-15 missile – also known as the CSS-6 – guided by advanced satellite navigation systems.

According to the Pentagon report, China is well on its way toward deploying an estimated 1,000 advanced ballistic missiles by the end of the decade. The People's Liberation Army has over 450 missiles pointed at Taiwan and is currently adding new missiles at a rate of over 75 a year. Defense intelligence sources expect China to increase the rate of missile production to 100 a year by 2005. The Pentagon noted that the ballistic missile trend poses "a growing and significant challenge" to the U.S., Taiwan and other Pacific allies.

"These missile attacks most likely would be high-volume, precision strikes against priority military and political targets, including air defense facilities, airfields, Taiwan's C2 infrastructure, and naval facilities," notes the Pentagon report. "Exclusive Taiwan reliance on active missile defenses and associated BM/C3I, however, will not sufficiently offset the overwhelming advantage in offensive missiles which Beijing is projected to possess in 2005," warns the Pentagon.


TOPICS: Business/Economy; Foreign Affairs; Front Page News
KEYWORDS: chicoms; china; espionage; tradesecrets; us
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1 posted on 08/18/2003 3:50:34 PM PDT by truthandlife
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To: truthandlife
Thank you, Ron Brown. Oh wait, he was shot in the forehead by a .45 slug.

Thank you, Bill and Hillary.

2 posted on 08/18/2003 3:53:25 PM PDT by MonroeDNA (No longshoremen were injured to produce this tagline.)
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To: truthandlife
It is a common (though amateur) espionage tactic to set up fast "buisenesses" near where elected officials are, where they will frequent, to gain their trust. Such as pizza joints, copy places, anything close where government lowlife minions will frequent.

Charlie Tree. Arkansas.
3 posted on 08/18/2003 3:56:46 PM PDT by MonroeDNA (No longshoremen were injured to produce this tagline.)
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To: truthandlife
We may need to start and enforce a rigid set of security clearance regulations on the Chinese. There is no reason that these people should be able to put 3,000 espionage fronts up in the US and not have our government know. I'm amazed it took until 9/11 for something truely horrific to happen here. Our borders leak like a sieve.
4 posted on 08/18/2003 3:57:13 PM PDT by .cnI redruM (The Problem With Socialism Is That You Eventually Run Out Of Other People's Money - Lady Thatcher)
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To: MonroeDNA
Meanwhile, United States sends all it's factories and technology to China and guts out middle class. Am I missing the bigger picture?
5 posted on 08/18/2003 3:58:09 PM PDT by riri
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To: truthandlife
The FBI is acting like a bunch of whining commies who are trying to spread fear with which prevent me and every other American from purchasing goods at rock bottom prices.

The stock market is up. Why shouldn't we let the Chicoms build better missles if they can do it cheaper? If that means laying off defense workers, so be it. They can learn a new trade. We can hire Chinese soldiers at a fraction of the cost of training and providing our own. We should look into that next. Why should I have to pay more for my defense than I have to? Let a Chinaman die on the cheap - saves me a buck, and saves the life of a burger flipper who would otherwise be wearing a uniform.

6 posted on 08/18/2003 3:58:09 PM PDT by Jim Cane
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To: truthandlife
I've long felt that the Islam problem would eventually become secondary the the Red Chinese one again. They already operate both ends of the Panama Canal, and have long range nuclear ICBM's. China also sells about 6 billion dollars a month in export junk to the U.S., while they purchase only about one billion dollars a month of American products. They are using five billion dollars a month of our own cash to build up their military machine. But it's curious that the FBI knows about the 3,000 Chinese "fronts" and allows them to remain. Are they watching all of them? Seems rather impossible to me.
7 posted on 08/18/2003 3:59:09 PM PDT by TheCrusader
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To: truthandlife
Thank you Bill "I am the biggest f'ing traitor this country has ever seen - hey, they BOUGHT ME (well, me and Al) - they are our "STRATEGIC PARTNERS". They are not a threat. Peace and Love will rule the world. Trust Me." Clinton.
8 posted on 08/18/2003 4:01:03 PM PDT by searchandrecovery (America will not exist in 25 years.)
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To: Jim Cane
"The FBI is acting like a bunch of whining commies who are trying to spread fear with which prevent me and every other American from purchasing goods at rock bottom prices."

Chinese products suck, and so does your plan.

9 posted on 08/18/2003 4:01:33 PM PDT by TheCrusader
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To: riri
No, you just are negative, and don't believe in your own tallents.
10 posted on 08/18/2003 4:02:13 PM PDT by MonroeDNA (No longshoremen were injured to produce this tagline.)
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To: TheCrusader
What's to see here anyway? Seems like they could gain more information about us simply by staying home--more of our stuff is there anyway.Or soon to be there. Maybe, they should set up front in India or Mexico. Not much to learn about state's secrets at the Home Depot or the Starbucks.
11 posted on 08/18/2003 4:04:16 PM PDT by riri
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To: truthandlife
Wow! And how many do we have in China?
12 posted on 08/18/2003 4:04:20 PM PDT by BJungNan
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To: truthandlife
I suppose nothing might help combat espionage more than maybe listing those 3000 companies? I know personally of about six. Man-O-man do you have to know how to peel an onion. Ever hear of a chemical company that claims to have a manufacturing capability of 7,000,000 tons of reactive batches who has never had an account with a railway firm? I mean 7,000,000 tons of sales needs to go in the factory one way and out the door another?

These firms are big on co-op's and university affiliations. They have tentacles inside all the manufacturing firms of raw product, in-process materials, and finished product. If you plant a confidential document as part of a meeting (which contains false information) you can watch it turn up within ten days in Indonesia, China,. Them Riyadi boys don't let anyone wipe their ass without toilet paper made from cloned American paper machines, processing chemicals, software, hardware, and engineering specs, and American taxpayer money to fund the start-up.

If some agency went to the trouble to count 3000 front companies, it can't be so hard to hit the print key can it?

13 posted on 08/18/2003 4:06:08 PM PDT by blackdog
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To: riri
"Meanwhile, United States sends all it's factories and technology to China and guts out middle class. Am I missing the bigger picture? "

I think you accurately described the bigger picture.

14 posted on 08/18/2003 4:06:14 PM PDT by DannyTN (Note left on my door by a pack of neighborhood dogs.)
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To: Jim Cane
Jim Cane - Since Jul 3, 2003
15 posted on 08/18/2003 4:07:10 PM PDT by anymouse
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To: Willie Green; Brian Allen; Terriergal
ping
16 posted on 08/18/2003 4:07:15 PM PDT by shaggy eel (Having fun @ 41º 18'S 174º 47'E)
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To: truthandlife
3,000?

Probably at least.
17 posted on 08/18/2003 4:08:29 PM PDT by Quix (DEFEAT her unroyal lowness, her hideous heinous Bwitch Shrillery Antoinette de Fosterizer de MarxNOW)
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To: truthandlife
Dry Cleaners....
18 posted on 08/18/2003 4:08:52 PM PDT by Snowy (My golden retriever can lick your honor student)
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To: riri
Am I missing the bigger picture?

"Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains." --Thomas Jefferson to Horatio G. Spafford, 1814. ME 14:119

Old Tom got it.

19 posted on 08/18/2003 4:08:59 PM PDT by steve50
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To: TheCrusader
This undisclosed list shall become the 2004 election cycle shakedown list. Politicians everywhere will be lining up to "meet with" the firms in their districts.

"Would you plefer that check written to cash in US dollar or Yuan Mr. Senator?"

20 posted on 08/18/2003 4:10:08 PM PDT by blackdog
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