A new Senate GOP report has revealed that the Chinese government has carried out a decade-long information theft campaign against the Federal Reserve, says members of the Senate Committee on Homeland Security and Governmental Affairs.
China is proving more and more to be a danger that we need to dedicate significant resources to keep an eye on, as it seems they are positioning themselves to become a global superpower with a desire to clearly be the top dog in that regard.
According to a report from The Daily Wire, “The Federal Reserve, charged with executing a dual mandate of maximum employment and stable prices, is presently determining policy to navigate the United States economy through the highest inflation rates in four decades. The report found that China — which holds nearly $1 trillion in Treasury securities — has used talent plan recruitment and promises of academic positions in an effort to gain influence and glean information from the central bank.”
“The Chinese government makes no secret of wanting to be the world superpower,” the report stated. “No sector or institution is off limits, and China has shown that it will use any means necessary to achieve its goals.”
The Daily Wire report went on to detail how China has been actively carrying out a campaign against the Federal Reserve ever since 2013, according to the Senate report, with investigators being able to identify a total of 13 “persons of interest” within 8 of the 12 regional Federal Reserve Banks as of 2015.
They found these folks by examining their international travel patterns among other factors. The report then goes on to reveal details concerning a total of five more recent case studies that involve China looking for sensitive information from American economists.
"*" indicates required fields
Four out of the five individuals mentioned in the report have been allowed to keep their jobs at the central bank, according to a committee aide who spoke with CNN.
“An official who had previously held positions at the People’s Bank of China and maintained other links to the Chinese monetary system was forcibly detained on four occasions during a 2019 trip to Shanghai, with Chinese officials allegedly tapping his phones and computers while threatening his family. The Chinese officials claimed that the individual had committed crimes against China and needed to ‘share sensitive, non-public economic data’ with the nation’s government,” the report continued.
The same GOP report also revealed the Federal Reserve is “not aware” of any other instances where Chinese officials have forcibly detained its workers.
It was also discovered that another person kept close contacts with Chinese nationals, which includes several government officials, and then provided modeling code to help advance research at Peking University’s National School of Development.
This official apparently also has some connections with academic organizations that are affiliated with the Thousand Talents Program. For those who might not know what that is, it’s an initiative in China that is geared toward attracting Western scientists to come to China in order to access their work for economic and military advancements.
Essentially, it’s poaching scientists away from Western countries.
“A third individual, a senior economist at a Federal Reserve Bank, was observed assisting Chinese government news agencies with publications. Two other individuals are likely linked to the Thousand Talents Program,” TheBlaze reported.
The report also points out that the Federal Reserve “has been unable to counter China’s malign influence and collection campaign effectively.”
It’s also been revealed that officials who have connections with talent recruitment programs “retain access to confidential information” which means that the central bank needs to improve the relationships it has with members of both the intelligence community, as well as federal law enforcement.
As a means of providing a solution for this issue, the report recommended passing a bill sponsored by Ohio Republican Sen. Rob Portman called the Safeguarding American Innovation Act, which is designed to stop “foreign governments, particularly China, from stealing American taxpayer-funded research and intellectual property” by bringing some fines and prison sentences as potential punishment for those who “intentionally fail to disclose foreign support on federal grant applications.”
“We cannot continue to allow our adversaries to steal taxpayer-funded research and innovation to the detriment of hard-working Americans,” Portman said in 2021.