By: Christopher Diamond
WASHINGTON — A report commissioned by the U.S. Department of Defense was circulated among senior Trump administration officials this week, stating that Beijing has been encouraging Chinese companies to invest in American startups.
According to the report, Chinese firms with strong ties to China’s government have increasingly been investing in companies with cutting-edge technologies, many of which have potential military applications, reported The New York Times.
According to three people knowledgeable about its contents, who spoke to The New York Times on the condition of anonymity, U.S. government controls that are intended to protect critical technologies are not working.
These critical technologies include companies that make rocket engines for spacecraft, sensors for autonomous Navy ships and printers that make flexible screens for possible use in fighter plane cockpits, in addition to companies researching artificial intelligence.
“What drives a lot of the concern is that China is a military competitor,” James Lewis, a senior fellow at the Center for Strategic and International Studies who is familiar with the report, told The New York Times. “How do you deal with a military competitor playing in your most innovative market?”
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