The U.S. Department of Justice [DOJ] is pivoting from its
now past approach to investigating and prosecuting intellectual property-related issues concerning China. Notably, the DOJ is attempting to balance the need for the United States to continue to attract research talent from
abroad, encourage international collaboration and, at the same time, ensure that there won't be abuse. Moreover, the DOJ is concerned regarding a perception of civil rights violations in the United States relating to the treatment of Asian-Americans and Chinese nationals arguably connected to some of the DOJ's activities. [More, here.] Today, Assistant
Attorney General Matthew Olsen delivered remarks outlining the broad strokes of
the new U.S. approach. Here are some of
his comments:
The PRC Threat
As you can see from these examples, we at the Justice
Department confront threats from a variety of nation-state actors. Our new
strategy reflects this reality — there is no one threat that is unique to a
single adversary.
At the same time, it is clear that the government of China
stands apart. So, I want to address how the department’s approach to Chinese
government activity fits within our overall strategy.
As the FBI Director publicly noted a few weeks ago, the
threats from the PRC government are “more brazen [and] more damaging than ever
before.” He is absolutely right: the PRC government threatens our security
through its concerted use of espionage, theft of trade secrets, malicious cyber
activity, transnational repression, and other tactics to advance its interests
— all to the detriment of the United States and other democratic nations and
their citizens around the world.
To be clear, we are focused on the actions of the PRC
government, the Chinese Communist Party, and their agents — not the Chinese
people or those of Chinese descent. As we talk about the threats that the PRC
government poses to the United States, we must never lose sight of that
fundamental distinction. We must always be vigilant to ensure that no one is
treated differently based on race, ethnicity, familial ties, or national
origin. This is a foundational commitment of the Department of Justice.
I’ll give you a few examples of what the PRC government is
doing.
First, it has targeted U.S. citizens with connections to the
intelligence community to obtain valuable government and military secrets. In
recent years, we have prosecuted four espionage cases involving the PRC,
reflecting a concerted effort to steal our most sensitive information.
Second, the government of China has also used espionage tools
and tactics against U.S. companies and American workers to steal critical and
emerging technologies. Agents of the PRC government have been caught stealing
everything from cutting-edge semiconductor technology to actual seeds that had
been developed for pharmaceutical uses after years of research and the
investment of millions of dollars.
Third, the PRC government has used malicious and unlawful
cyber campaigns to pursue technological advancement and profit. The PRC reaps
the benefits of these criminal activities, while the victims, including
governments, businesses and critical infrastructure operators, lose billions of
dollars in intellectual property, proprietary information, ransom payments and
mitigation efforts.
Finally, China’s government has gone to great lengths to
silence dissent. It has intimidated journalists and employed a variety of means
to attempt to censor and punish U.S. citizens, residents, and companies for
exercising their rights to free expression. I mentioned earlier Operation Fox
Hunt — the PRC’s illegal effort to coerce the return of certain Chinese
dissidents to China — which is just one example.
Strategic Review
Against this backdrop, the department announced the “China
Initiative” in 2018. The idea behind the initiative was to develop a coherent
approach to the challenges posed by the PRC government. The initiative
effectively focused attention on the multi-faceted threat from the PRC. But it
has also engendered growing concerns that we must take seriously.
I want to take this opportunity today—discussing our approach
to nation-state threats overall—to also address the China Initiative directly.
We have heard concerns from the civil rights community that
the “China Initiative” fueled a narrative of intolerance and bias. To many,
that narrative suggests that the Justice Department treats people from China or
of Chinese descent differently. The rise in anti-Asian hate crime and hate
incidents only heightens these concerns. The Department is keenly aware of this
threat and is enhancing efforts to combat acts of hate. These efforts are
reflected in the Attorney General’s memorandum issued last year following the
enactment of the COVID-19 Hate Crimes Act.
There are also increasing concerns from the academic and
scientific community about the department’s pursuit of certain research grant
fraud cases. We have heard that these prosecutions — and the public narrative
they create — can lead to a chilling atmosphere for scientists and scholars
that damages the scientific enterprise in this country.
Safeguarding the integrity and transparency of research
institutions is a matter of national security. But so is ensuring that we continue
to attract the best and the brightest researchers and scholars to our country
from all around the world — and that we all continue to honor our tradition of
academic openness and collaboration.
In light of these concerns, we began a review soon after I
took office. The review’s purpose was forward-looking. The key question was
whether this framework still best serves the strategic needs and priorities of
the department. While I remain focused on the evolving, significant threat that
the government of China poses, I have concluded that this initiative is not the
right approach. Instead, the current threat landscape demands a broader
approach.
I want to emphasize my belief that the department’s actions
have been driven by genuine national security concerns. But by grouping cases
under the China Initiative rubric, we helped give rise to a harmful perception
that the department applies a lower standard to investigate and prosecute
criminal conduct related to that country or that we in some way view people
with racial, ethnic or familial ties to China differently.
I began my career as a trial attorney in the Civil Rights
Division. The department is committed to protecting the civil rights of
everyone in our country. But this erosion of trust in the department can impair
our national security by alienating us from the people we serve, including the
very communities the PRC government targets as victims. Our reputation around
the world for being a country dedicated to civil rights and the rule of law is
one of our greatest strengths.
As part of this review, I have paid particular attention to
cases involving academic integrity and research security. When it comes to
these cases, the National Security Division will take an active supervisory
role in the investigations and prosecutions. In evaluating cases moving
forward, NSD will work with the FBI and other investigative agencies to assess
the evidence of intent and materiality, as well as the nexus to our national or
economic security. These considerations will guide our decisions — including
whether criminal prosecution is warranted or whether civil or administrative
remedies are more appropriate.
In addition, the White House Office of Science and Technology
has released new guidance to federal funding agencies, including procedures to
correct inaccurate or incomplete prior disclosures. These agencies have primary
responsibility for research integrity and security. Where individuals
voluntarily correct prior material omissions and resolve related administrative
inquiries, this will counsel against a criminal prosecution under longstanding
department principles of prosecutorial discretion.
Make no mistake, we will be relentless in defending our
country from China. The Department will continue to prioritize and aggressively
counter the actions of the PRC government that harm our people and our
institutions. But our review convinced us that a new approach is needed to
tackle the most severe threats from a range of hostile nation-states.
NSD’s Approach Moving Forward
Going forward, the National Security Division will pursue
this work guided by our Strategy for Countering Nation-State Threats. Our
recent experience confronting the varied threats posed by the Chinese
government has shown that a multi-faceted challenge demands an integrated and
multi-faceted response. We need to expand our approach to these threats by
recognizing the capabilities of each hostile nation and the full spectrum of
activity each country undertakes to achieve its goals. And we must align our capabilities,
tools and resources with those across the federal government to meet and
counter these threats.
Our work will be informed by three strategic imperatives.
First, we must continue to defend core national security
interests and protect our most sensitive information and resources. We will
continue to aggressively investigate and prosecute espionage, export control
and sanctions violations, and interference with our critical infrastructure.
Second, we must protect our economic security and prosperity,
including key technologies, private information about Americans and supply
chains and industry. We will bring all tools to bear, including the regulatory
authorities of the Committee on Foreign Investment in the United States and
Team Telecom — as well as criminal process where appropriate — to prevent and
mitigate harms from economic espionage, hostile manipulation and cyber-enabled
malicious activity.
Third, we must defend our democratic institutions and values
to ensure that the promise of freedom remains a reality in the face of rising
authoritarianism. We remain steadfast in our commitment to preventing malign
influence inside our borders and to promoting freedom of expression and
democracy against corrupt and repressive forces.
As we move forward, the department remains committed to
confronting any nation that threatens U.S. national security, economic security
or our democratic institutions and freedoms.
We will use all the legal tools in our arsenal to combat
these threats. The cornerstone of our work at the Justice Department is to
investigate and prosecute crimes sponsored by hostile governments and their
agents. This includes prosecuting state agents for espionage, hacking campaigns
against our government and the private sector, and the repression of critics,
as well as efforts to manipulate public discourse in the United States.
In addition to our criminal enforcement work, NSD will use
our civil and administrative tools to mitigate threats from foreign investment
activity and foreign interests that seek to secretly influence public opinion
in the United States.
We also will support broader whole-of-government efforts —
which include diplomatic engagement, the use of economic tools and resilience
building in communities within the United States and abroad — to address these
threats. We will reach out, along with our federal partners, to build trust
with affected communities to understand their public safety needs, and to
ensure they feel comfortable reporting crimes and incidents.
Finally, we will continue to engage with democratic allies to
share information and to discuss how we can make our partner countries more
secure. Together, we will develop strategies for effectively responding to
these grave threats to the rule of law and to our economic integrity.
Conclusion
The United States is a beacon for people all over the world
who seek to live in an open and democratic society. It is our duty in the
National Security Division to protect the United States from the myriad threats
we face, while staying true to the Constitution and the values of the Justice
Department. I know that this commitment to securing equal justice while
defending our national security is shared by everyone in the National Security
Division and the Department of Justice. [The full comments are available, here.]
