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Memo To US Startups: China Wants Your IP (and There Are Ways To Stop Them)

A top US counterintelligence official counsels American companies on protecting their ‘crown jewels’

Microchip and flag of United States on a phone screen in this multiple exposure illustration photo taken in Krakow, Poland on April 12, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

EXPERT INTERVIEW — The race between China and the U.S. for tech supremacy gets fiercer by the day. In the latest salvo, the U.S. this week added five Chinese tech giants to a list of Chinese companies it has accused of helping Beijing’s military. The Pentagon maintains the list of companies as part of its campaign to counter Chinese military development, spurred by Beijing’s military-civil fusion strategy and leveraging of dual-use technology.

The Cipher Brief spoke recently with Michael Casey, Director of the National Counterintelligence and Security Center (NCSC), about a specific aspect of this technology competition with China: the trend of Chinese venture capitalists and investors backing U.S. startups in emerging tech, then taking their intellectual property back to China to found competing companies. It’s a unique approach that officials believe China is using to get ahead. 

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