From Foreign Affairs · David S. Cohen · · 1m 50s
Economic Espionage for U.S. Tech Leaders
U.S. should spy on foreign companies to protect frontier tech from Chinese competition.
In brief
U.S. should spy on foreign companies to protect frontier tech from Chinese competition. The U.S. should allow intelligence agencies to share commercial secrets with tech firms to counter China's industrial policy. Originally reported by Foreign Affairs.
Historical Espionage
For decades, adversaries and allies have spied on American companies to gain innovation insights.
“The Center for Strategic and International Studies recorded 224 incidents of Chinese-sponsored espionage against the United States that occurred between 2000 and 2023, of which more than half targeted commercial technologies.”
U.S. Policy Ban
The U.S. intelligence community has long maintained a policy against spying on foreign companies for commercial advantage.
“In 2014, President Barack Obama codified the ban on economic espionage.”
China's Threat
China systematically steals trade secrets from U.S. companies to advance its industrial policy.
“In 2015, China's State Council announced the 'Made in China 2025' initiative to lead in ten key technologies by 2025.”
Current Tech Landscape
U.S. national security now depends on private-sector innovations in AI, semiconductors, quantum science, and bioengineering.
“The U.S. lead in many crucial advanced technologies is being contested or even erased by China.”
China's Advancement
China leads in supercomputing, battery technology, and quantum computing with rapid progress.
“In June 2026, a Chinese lab built the world's most powerful supercomputer with a 20 percent improvement over its closest american competitor.”
U.S. Response
The U.S. has used economic tools like tariffs and export controls to protect tech industries but lacks economic espionage.
“The Biden administration's CHIPS and Science Act and Inflation Reduction Act cited national security to support u.s. tech industries.”
Proposed Solution
The U.S. should allow intelligence agencies to share trade secrets with frontier tech firms to counter Chinese competition.
“The president should issue an executive order authorizing intelligence sharing with the private sector, even if it provides companies a commercial advantage.”
Implementation
The executive order must target specific countries, sectors, and companies while ensuring oversight and national security alignment.
“The order should permit the administration to add new sectors after consulting with intelligence committees, provided they meet rigorous criteria.”
Oversight
Congress must ensure economic espionage does not become politicized or corrupted through annual audits and intelligence briefings.
“Congress should direct the inspectors general of the U.S. Intelligence Community to conduct an annual audit to verify whether the program advances national security.”
Risk Assessment
Abandoning the norm could trigger a spy race with China but the U.S. has no evidence of Chinese restraint.
“There is no evidence that the chinese intelligence services have been holding back until now because of u.s. self-restraint.”
Frontier Technologies
Frontier technologies like AI, semiconductors, and quantum computing are critical to national security and commercial success.
“The same or similar ai models are used by businesses and consumers across the general economy, enhancing efficiency and personal productivity.”
U.S. Leadership
The U.S. must act now to protect its technological edge against Chinese industrial policy advancements.
“The United States could reap crucial benefits from sharing foreign trade secrets with select tech firms.”
Conclusion
The U.S. should lift its prohibition on economic espionage to maintain technological leadership in frontier industries.
“The United States can no longer afford to withhold its most sophisticated intelligence from the companies that may well define the country's security and power.”
The key point
The U.S. should allow intelligence agencies to share commercial secrets with tech firms to counter China's industrial policy.
