By Eric Vandenbroeck and co-workers
Since coming to power
in March 2013, Xi has not hidden his grand design for China’s national
rejuvenation: to make it the greatest power in the world. He is a true
believer, born into communism and molding himself in the image of Mao, the
Great Helmsman. He used a platform of ‘anti-corruption’ to strengthen his
regional, then central, and now supreme hold on power. Now in an unprecedented
third term in office, after the Twentieth Party Congress in October 2022, Xi’s
goal is for China to displace the United States as the world’s greatest power
both in Asia and the world. The year 2049, the centenary of communist rule in
China, seems an obvious deadline for Xi. To become the number one power, China
must catch up with the West and overturn the US-led rules-based international
order.
Xi’s strategy is to
protect his own rule and ‘unite’ China – which means absorbing Hong Kong and
Taiwan, by force if necessary. In his public strategic plan, ‘Made in China
2025,’ Xi identified ten key technology areas that he wants China to excel in,
including robotics, green energy production and vehicles, aerospace, and
biopharma. Xi has said that in those areas of core technology, where it would
be otherwise impossible for China to catch up with the West, the country must
‘research asymmetrical steps to catch up and overtake’ Western powers. Xi has
thus made no secret of giving his authorization to steal technological secrets.
In the decade after 2010, the FBI witnessed a 1,300 percent increase in
China-related economic espionage cases. Some of that may be explained by
increased FBI collection, and discovering more espionage going on anyway, but
that cannot explain it all. China’s cyber-hacking operations, targeting every
sector of Western society, are greater than every other major nation combined,
according to the FBI.
In July 2022, MI5’s
director general, Ken McCallum, gave an unprecedented joint public briefing
with FBI director Chris Wray at MI5’s London headquarters, Thames House. Wray
put it bluntly to the audience of assembled business leaders: ‘The Chinese
government is set on stealing your technology, whatever it is that makes your
industry tick, and using it to undercut your business and dominate your
market.’ In October 2022, President Biden effectively declared economic war on
China by imposing restrictions on high-end chips. Biden’s strategy is to
sabotage China’s race to dominate artificial intelligence (AI). As the
commentator Edward Luce pointed out, when the history of this period comes to
be written, it will likely be seen as the moment when the US-China rivalry came
out of the closet. How did we get here?
Before 9/11, the US
intelligence community was sounding the alarm about the national security
threat posed by Chinese espionage. At the turn of the century, China’s
intelligence services were conducting sustained efforts to steal American
S&T, like nuclear secrets, as national security papers held at President
Bill Clinton’s library reveal. Then 9/11 happened. Thereafter, Western
intelligence agencies overwhelmingly focused their resources on kinetic
counterterrorist operations – while downgrading collection on resurgent states
like China and Russia. According to a report published in 2020 by Britain’s
parliamentary intelligence oversight committee, in 2006–7 some 92 percent of
all of MI5’s work effort was devoted to counterterrorism, with the remainder thinly
spread across all other areas, including hostile state activities.
According to MI6’s
former deputy chief Nigel Inkster, who retired in 2006: ‘In my three-decade
career with Britain’s Secret Intelligence Service, China was never seen as a
major threat.’ In the United States, the downgrading of hostile states like
China after 9/11, at the expense of counterterrorism, was less acute than in
Britain, but there was a ‘downward glide,’ according to one NSA official
interviewed for this book on the condition of anonymity. The US intelligence
community had more resources than the British and more capacity, so shifts were
less acute. But even the US intelligence community did not give China the
attention it deserved after 9/11. According to Sue Gordon, a career CIA officer
and later one of the most senior American intelligence officials, the US
intelligence community failed to respond to what was going on in China after
9/11. That period ushered in the digital revolution, which, Gordon noted,
permanently changed the nature of intelligence and national security.
The Chinese
government grasped the opportunities provided by the digital revolution and
operationalized them. The US did not. It was still overwhelmingly focused on
terrorism and was trying to address new threats with leftover resources.
According to Michael Hayden, DCI from 2006 to 2009 (and previously director of
NSA): ‘Every day [at CIA] I woke up thinking I had to do something about China,
but there was never enough time.’ The priority given to counterterrorism within
US intelligence continued until as late as 2017.
In 2005, the
principal civilian Chinese intelligence services, the Ministry of State
Security (MSS), declared war on the US intelligence community. From that point,
according to CIA insiders interviewed, all the MSS’s best personnel and
resources were marshaled in the US, with the long-term strategic aim of
supplanting America in Southeast Asia. As the US was distracted if not consumed
by the War on Terror, the MSS’s gains were largely undetected or appreciated by
US spy chiefs. China’s strategy followed a saying, GeAnGuanHuo
(), ‘Watch the fires burn from the safety of the opposite river bank which
allows you to avoid entering the battle until your enemy is exhausted.’
Those failures were
exposed between 2010 and 2012, when Chinese intelligence broke up a CIA spy
network, reportedly leading to the detection, imprisonment, or death of around
thirty agents. Insiders describe this case as the tip of an iceberg of still-classified
US intelligence failures in China in recent years. Their causes remain unclear.
They may have arisen from the Chinese technical collection of CIA covert
communications (COCOM). More chillingly for Langley, according to some
insiders, they may have come from a Chinese mole inside US intelligence. The
spy in question may have been a former CIA case officer in China, Jerry Lee,
now convicted of espionage.
f Xi makes a
move on Taiwan, we shall find out whether the US intelligence community has
penetrated his regime in the same way it did Putin’s. China’s economic rise
this century has been meteoric. At the turn of the century, its GDP was around
$1.2 trillion. It is now $17.7 trillion. Between 2011 and 2013, China
used more cement than the United States consumed in the entire twentieth
century. The country’s high-speed trains leave Amtrak, in the dust. The
widespread belief in the West, at least at the time of the 2008 Beijing
Olympics – that China’s economic development and integration with the world
economy would lead to greater political freedom and make it a responsible
stakeholder in global affairs – has proven to be mistaken. Chinese espionage
against Western countries has accelerated since Xi took power.
Of the 160 reported
cases of Chinese spies in the United States from 2000 to 2020, over half are
since Xi took the helm. Those are, of course, just the cases detected by US
authorities. China’s industrial explosion this century was propelled by foreign
intelligence collection. This has taken the form of traditional human espionage
combined with cyber exploitations. These offensive efforts have allowed the
Chinese government to reverse-engineer manufacturing and save time and
resources on research and development. According to US intelligence (ODNI)
estimates, Beijing’s spying has saved China $320 billion in R&D costs.
China’s massive Belt and Road Initiative, a
political and economic program to advance their interests in other regions of
the world through large investments in infrastructure, has been accompanied by
a barrage of espionage, subversion, sabotage, and disinformation.
All are designed to
further China’s grand strategy to make itself into a superpower rivaling
America. Xi’s ‘China Dream,’ his ‘Made in China 2025’ platform and the
‘Thousand Talents’ program are amped-up Soviet-like economic plans. They are
designed to make China independent of Western technology, invert the existing
world order, make the West dependent on Chinese technology, and establish China
in its rightful place as the middle kingdom, all while containing the United
States and its ‘imperialism.’ As usual with counterespionage, we only know
about spies who are caught. Take the case of a Chinese national, Xu Yanjun, who in November 2021 was successfully prosecuted in
the US for stealing technology in Europe and the United States. Beginning in at
least 2013, Xu presented himself as a businessman interested in joint ventures
with US and European companies specializing in aviation. His patient
recruitment strategy eventually worked with GE Aviation, which developed an
advanced composite aircraft engine. In March 2017, he recruited an agent in the
company, a GE engineer, who gave him sensitive IT data. Xu threw money, and a
trip to China, at his recruit.
Xu was of course not
a businessman but a Chinese intelligence
officer (again, part of the Ministry of State Security). In 2018, Xu
started to task his recruit for GE technical secrets. By this time, however,
the GE employee had alerted the FBI. Xu was arrested in April 2018 in Belgium,
where he traveled to meet his agent. If it had been successful, Xu’s espionage
would have allowed the MSS to steal valuable GE Aviation secrets, and the
Chinese government to leapfrog over a decade of hard work and billions of
dollars spent in research and development. The case shows the fusion of human
and cyber intelligence – ‘hyber.’ There are countless
other cases of Chinese ‘businessmen’ seeking joint ventures with Western
companies, using the prospect of cooperation to obtain intellectual property –
maybe an underlying source code – but then withdrawing from an agreement once it
is obtained. Western companies are left like empty shells, having given up
their IP. They often have to declare bankruptcy, with resulting job losses, in
the face of Chinese firms selling products based on their own IP on the market.
To add insult to injury, sometimes Chinese companies sell Western IP back to
the communities from which they stole it. The former head of
counterintelligence at the CIA, Mark Kelton, has put the current Chinese
espionage storm in perspective: a scale such that the United States government
has not seen since Soviet intelligence in the 1930s. Kelton’s remarks deserve
widespread attention.
Among the government
and private sector secrets that have been appropriated by China in the
twenty-first century are US missile and military aircraft designs (F-35 and
F-22), Silicon Valley software and hardware secrets, pharmaceutical patents,
and research from US universities and other institutions. A cursory glance at
the J-20, a Chinese fifth-generation fighter, reveals its similarity to the
F-22. That is not surprising, given that a Chinese national was prosecuted for
stealing its plans from Lockheed Martin. (This follows in the tradition of the
Tupolev Tu-4, a Soviet bomber, which was a clone of the famous glass-fronted
Boeing B-29 Superfortress.) It remains to be seen whether Western governments
have secretly learned the lessons of the Cold War from the FAREWELL case
described earlier: to sabotage US supply chain secrets being targeted and
stolen by a hostile state.
There are rumors that
the NSA sabotaged software made by Cisco Systems that ended up in China. To
carry out their intelligence offensive, China’s spy chiefs are deploying some
of the apparatus and methods of their Soviet predecessors. Legal intelligence officers
are stationed in Western countries under diplomatic cover. Chinese deep-cover
illegals, without diplomatic cover, pose as students at US universities,
businesspeople, or tourists. They recruit agents in the West with access to
political and economic secrets. China’s spy chiefs keep diaspora communities in
Western countries under surveillance, appeal to their ‘patriotic’ duty, and,
when that fails, use family members who remain in China to bribe and blackmail
their relatives into collecting intelligence and influencing targets. China’s
intelligence services also use a constellation of front groups in Western
countries, such as the five hundred or so Confucius Institutes across the
world, to engage in illicit activities.
As the scholar Alex Joske has shown, although they are not
ostensibly under the control of the Chinese Communist Party, they are directed
by the CCP’s United Front Work Department (UFWD) in Beijing. The UFWD,
described by Mao as one of the party’s ‘Magic Weapons,’ is the equivalent of
the Comintern. The country’s influence campaigns have
reached US and British universities, think tanks, media organizations, and
politicians, all to recruit future leaders and promote platforms favorable to
China. There are good reasons for China’s use of tradecrafts similar to that of
the Soviets. China’s intelligence services – the Ministry of State Security,
the Ministry of Public Security, and PLA military intelligence – have their
origins in the Soviet period.
The CCP famously
scrutinizes Soviet history, especially the Soviet Union’s collapse. In 2006 it
produced an eight-volume DVD set, Consider Danger in Times of Peace: Historical
Lessons from the Fall of the CPSU (Communist Party of the Soviet Union). The CCP
would undoubtedly look askance at the suggestion that it needed to learn about
intelligence from the Soviets or Russia. China has its own ancient history of
espionage, deception, and subversion on which to draw. We do not know the
extent to which China’s spy chiefs have educated themselves through their
friends in Moscow, past and present, and/or are themselves innovating. So far
as we know publicly, the West does not yet have the Chinese equivalent of
Western spies in the KGB, such as Oleg Gordievsky
or Vasili Mitrokhin, who can reveal Beijing’s
innermost intelligence secrets.
Chinese intelligence
is also naturally seeking to penetrate Western agencies themselves. The MSS has
recruited agents to infiltrate the CIA like the KGB recruited the Cambridge
Spies eight decades ago. The case of Jerry Chun
Shing Lee, a CIA officer who became a Chinese agent after he left the
agency, shows that Chinese intelligence has certainly got close. For all we
know, China’s provocative actions in the South China
Sea may be calibrated on intelligence from deep inside Washington, just as
Stalin’s provocations were in postwar Europe.
In 2019 alone, three
former US intelligence officials (from the CIA and the Defence
Intelligence Agency) were prosecuted for revealing secrets to the Chinese.
Chinese intelligence is also known to have recruited former French intelligence
officers. Has Chinese intelligence gone further and recruited current officers?
Chinese intelligence
has a database of potential kompromat for recruiting American spies of which
the KGB could only have dreamed. Beginning in November 2013, it seems, Chinese
hackers breached the databases of the US Office of Personnel Management (OPM).
They contain the most sensitive information about holders of US security
clearances – personal information that those who go through background checks
want to keep secret, sometimes even from their own families: personal finances,
substance abuse, extramarital affairs, psychiatric care, sexual behaviour, even notes to polygraph tests.
It is estimated that
the OPM data stolen by Chinese hackers pertains to millions of Americans. It
includes twenty-two million security clearance files and five million
fingerprints. All this data is now in Beijing. Former FBI director James Comey
has stated that his security clearance form has likely been stolen, providing
Chinese hackers with the addresses of every place he has lived since he was
eight, and a list of everywhere he has travelled to outside of the United
States. Chinese hackers followed the OPM breach by conducting, in 2017, one of
the largest data breaches in history: the theft of confidential data on
approximately 150 million Americans from the consumer credit reporting agency
Equifax. If you are an American, it is now more likely than not that China has
stolen your data. In 2021, the Chinese government conducted a massive hack of
Microsoft Exchange email server software. It compromised the networks of thirty
thousand American companies. According to the FBI in 2022, China stole more personal
and corporate data from Americans than hackers from every other country
combined.
The marketplace for
foreign intelligence recruitment is now LinkedIn. In some instances, former US
government employees and contractors make it all too easy for Chinese
operatives. Some proudly display on LinkedIn that they have security
clearances, effectively putting a For Sale sign on their profiles. They are
comparatively easy targets for Chinese false-flag operations, wherein officers
pose as innocuous ‘risk consultants’ offering lucrative contracts. With
relatively small government salaries, piling mortgage debts, and eye-watering
college tuition bills, for some, it will not be hard to sell out the American
dream for Chinese cash. Divided loyalties, not ideology, are the key motivation
for Americans known to have become spies since the end of the Cold War.
Fair enough for
China, we might say. They are doing what anyone else would – perhaps just
better. But that is to discount a fundamental asymmetry. The US government does
not collect economic and industrial intelligence to give its companies a
competitive advantage. By contrast, the Chinese government has integrated
‘national security’ – a slippery term – and commerce. Through legislation
passed in 2014, all Chinese citizens and companies are required, when
requested, to collaborate in collecting intelligence. In effect, this has
produced a whole-of-society espionage effort. The Chinese technology giant
Huawei, the largest manufacturer by revenue of telecom equipment in the world,
constitutes a latent platform for bulk Chinese intelligence collection.
In China, because of
a series of national security laws passed since 2015, there is no such thing as
a truly independent business. The country’s intelligence services are hidden
partners in commercial enterprises with the outside world. The story of Crypto
AG discussed in Chapter Nine, reveals how Western governments colluded with a
private encryption company to collect bulk data. It is fanciful to think that
China is not undertaking similar activities. Huawei’s hardware, integrated into
homes and offices worldwide, in appliances that are part of the Internet of
Things, provides China with unprecedented opportunities for bulk collection
through billions of interconnected and interdependent global data points.
TikTok constitutes an advanced Chinese government collection tool, masquerading
as a social media platform. It provides Beijing with a tsunami of global
information, behind the endless dance videos posted on it. It also allows China
the opportunity to shape and suppress online narratives, should it wish to do
so. It does not take much to imagine what Chinese data scientists can do with
this information, using machine learning and data mapping techniques like
social network analysis.
As with the Soviets,
a major priority for Chinese intelligence is domestic control and repression:
intrusive surveillance of citizens, the suppression of pro-democracy dissent,
indoctrination, and the incarceration of enemies, even those who pose little credible
security threat. China’s internment of about one million ethnic Muslim Uighurs
in Xinjiang, and its forced labour programmes, recall the Gulag.
The CCP goes to
comparable lengths to silence opposition and airbrush away its human rights
abuses, creating what the author Louisa Lim calls the ‘People’s Republic of
Amnesia,’ committed to destroying all popular memory of the 1989 democracy
movement in China. Just as the KGB jammed British and American radio
transmissions into the Soviet Union, today Chinese intelligence operates the
great firewall, censoring internet traffic, with online censors preventing all
internet search terms of Tiananmen Square and any online reference to the
massacre of 4 June 1989, by blocking all combinations of searches of the
numbers 6, 4, and 1989. They also blocked the Chinese word for ‘jasmine,’ the
synonym for Tunisia’s colour revolution in 2011,
incredible for a nation of jasmine tea lovers. China sells its digital
playbook, including facial recognition software used for ubiquitous
surveillance, to authoritarian regimes across the world – offering a
tried-and-tested blueprint for social control, ready for dictators to use.
Made-in-China surveillance technology is being found around the globe.
China’s doctrine of
‘winning without fighting’ (like Russia’s active measures) is designed to
influence foreign affairs to its advantage. The two countries do, however, have
different aims: Russia uses covert action to divide Western alliances and
create chaos in Western democracies, while China seeks to project a positive
image of itself as an alternative to its Western competitor, pulling foreign
countries away from the US and into its orbit. As with so much else, though,
when it comes to spying and covert actions, the CCP has taken matters to an
entirely new level compared to the past. The MSS is staffed with approximately
eight hundred thousand officials, dwarfing the KGB even at its height.
The Chinese
government has regurgitated for Covid the same conspiracy theory cooked up by
the KGB about AIDS. Whether by design or coincidence, Beijing has pushed
disinformation that COVID-19 was a bio-weapon developed by the US military. The
Chinese government has even claimed that COVID-19 originated at Fort Detrick,
the same US military research facility where the KGB claimed AIDS was
engineered. What’s old is new again.
But today there is no
need for Chinese services to plant disinformation in obscure publications, as
the KGB did. Social media now provides a quick, easy, and cheap torrent of
disinformation about the coronavirus. As with AIDS, China’s Covid disinformation
exploits existing divisions in the US and other Western societies. Western
anti-vaxxers did the heavy lifting for Chinese trolls. Meanwhile, if we are to
look for a laboratory that may have manufactured the novel coronavirus, we
should look to Wuhan, not Maryland. The Soviet Union, after all, produced
disinformation about American bioweapons when it was secretly conducting the
world’s largest illegal secret biological weapons programme,
Biopreparat.
At the same time, due
to the nature of the Chinese one-party regime, Xi’s foreign affairs may be
undermined by the same crippling sycophancy that beleaguered the Soviets. Xi’s
regime does not incentivise intelligence officers to
think independently and challenge political orthodoxy but instead places a
premium on filtering out anything the Chinese leader does not want to hear. If
history is any guide, when Chinese archives are one day hopefully opened, we
are likely to find a similar chasm between the Chinese government’s ability to
collect intelligence and its ability to accurately assess it – just as we saw
in the Kremlin. Former MI6 deputy chief Nigel Inkster, a China expert, put his
finger on the issue when he noted: ‘Rather as with the KGB, the difficulty has
been in telling truth to power.’ After the Twentieth Party Congress in 2022,
Xi’s politburo is stacked with loyalists. This raises the alarming prospect
that Xi is making consequential decisions, such as about Taiwan, based on
yes-men – his politburo is all male – and warped intelligence. Doing so
increases the chances of a Chinese miscalculation. Chinese industrial
espionage, stealing Western research and development, was the story before the
coronavirus pandemic. Since then, China’s Belt and Road projects have stalled.
Beijing has pivoted from traditional infrastructure investment abroad to new
health, digital, and green Silk Road
initiatives, which emphasise the benefits of trade
with China. But something else is now also underway. China has identified
thirty-five strategic technologies that it depends on from imports, so-called
chokepoint technologies, vulnerable to supply chain disruption.
China is innovating
those technologies for itself, insulating itself from Western disruptions. We
shall see whether Xi’s strategy is successful. The latest information available
as this book goes to print, from leading US cybersecurity companies like CrowdStrike,
is that Chinese hackers are moving from theft of Western R&D to insertion
of malware. This can be used to sabotage
infected systems.
Hong Kong, China’s
‘special Administrative Region, previously one of the most enterprising
societies in the world, Hong Kong now offers a chilling indication of what
Beijing has in store for territories it considers its own – like Taiwan, the democratic island off China’s coast.
Hong Kong’s latest new national security law rammed through its compliant,
handpicked parliament during the Covid pandemic in June 2020, effectively ended
political opposition here, allowing Chinese authorities sweeping jurisdiction
to surveil, detain, and arrest ‘subversives’ – invariably pro-democracy
activists. The British consider it a breach of the 1984 Sino-British Joint
Declaration, which provided for Hong Kong to remain autonomous – ‘one country,
two systems’ – for fifty years after the 1997 handover. A watershed moment
occurred in March 2022, when British judges withdrew from Hong Kong’s top
court, the Court of Final Appeal, where they had sat since the handover (as
they had under British rule). Hong Kong’s new national security law made their
presence ‘no longer tenable,’ because the administration had ‘departed from
values of political freedom, and freedom of expression,’ according to the head
of Britain’s Supreme Court in London. Meanwhile, Singapore, with its rule of
law, vibrant culture, and efficient government, seems set to take on Hong
Kong’s mantle as Asia’s most dynamic city-state.
In February 2022, on
the eve of Russia’s invasion of Ukraine, Putin held a meeting with President Xi
in which they declared themselves to be in a partnership with ‘no limits.’
Russia and China’s partnership is an express effort to overturn the US-led liberal
democratic order. According to Xi and Putin, the US uses democracy and human
rights as a pretext to impose its will on other nations. The US ‘attempts at
hegemony,’ wrote Xi and Putin, ‘pose serious threats to global and regional
peace and stability and undermine the stability of the world order.’ The West
is decadent, and in decline. As Russian foreign minister Sergei Lavrov put it in a tweet: ‘We are at
the beginning of a new era, a movement towards real #multilateralism, not the
one which West tries to impose based on the “exceptional role” of the Western civilisation in the modern world. The world is much richer
than just Western civilisation.’ Putin has been
howling similar words since his 2007 Munich speech.
Putin and Xi mean
what they say: that liberal democracy is not up to the task of responding to a
world in crisis. Xi reportedly told Joe Biden that only autocracies can provide
the rapid responses needed to address the challenges of the modern world, from
pandemics to disinformation. The United States, with its pesky freedoms,
performed badly when it came to the Covid pandemic. (Earlier Chinese
propaganda, criticising America’s handling of the
pandemic, has since become a distant memory given the brave, open criticism in
autumn 2022 by Chinese citizens of their own government’s disastrous zero-Covid
policy.) The painfully apparent dysfunction of the United States political
system nevertheless offers endless, easy propaganda victories for the CCP,
whose membership is larger than Britain’s population: Donald Trump’s torrent of
lies and conspiracy theories, in and out of office, the polarisation
of US society, which culminated with a white
supremacist insurrection on the Capitol in January 2021.
The Cold War is not a
perfect analogy for the world’s contemporary superpower clash. Cold War 2.0 is
not simply a repeat of Cold War 1.0. China’s economic and technological
integration with the rest of the world, and other countries' dependence on
Chinese manufacturing, makes geopolitical relations with China significantly
more complex – and more dangerous. Unlike contemporary China, the Soviet Union
never made much that the rest of the world wanted. The country was a pariah.
The US economy was a goliath. That is not the same now. China is the top
trading partner for more than half of all countries and is Europe’s biggest
source of imports. At the end of 2021, China held roughly $1 trillion of US
debt. Little wonder that Secretary of State Antony Blinken performs linguistic
acrobatics to avoid calling US-China relations a ‘Cold War.’ (He knows how
trade can be used as weapons between East-West superpowers, having written a
book about the Soviet-Siberian natural gas pipeline in the 1980s.) The Biden
administration’s 2022 national security strategy likewise emphasises
that the US does not seek a new Cold War. That, of course, overlooks one of
this book’s central conclusions: Western powers can be in a Cold War
irrespective of whether they seek one and before they recognise
it.
There are other
differences too. The Cold War was characterised by
universalist, incompatible ideologies. Unlike the Soviet Union, the Chinese
politburo today does not espouse a universalist philosophy. Like Russia,
China’s bid for global power is based on ethnonationalism. Someone who looks
like me can never become Chinese, though I could have become a Soviet fellow traveller and even a citizen (Russian racism, however, was
never far from the surface in the Soviet days). China’s intelligence offensive
today is also more expansive than anything the Soviets could muster. The
latter’s intelligence offensive during the Cold War was traditionally focused
on specific targets. China’s strategy is much broader, a whole-of-state
approach, using a ‘human wave,’ or a ‘mosaic,’ or ‘a thousand grains of sand’
to vacuum up foreign intelligence and overwhelm American counterintelligence.
That said, the Cold
War is still a useful paradigm. It is the only precedent we have for a
sustained intelligence superpower clash. Both sides today, East and West, have
nuclear weapons. (China wishes to increase its warheads from about 350 to 1,000
in 2030, compared to America’s reported 5,500.) Unlike with the Soviets, there
are no effective nuclear arms limitation agreements between the US and China.
As in the Cold War, relations between both sides today rest on the principle of
mutually assured destruction. ‘A nuclear
war cannot be won and must never be fought,’ as Reagan liked to say. While
there is not a clash now between communism and capitalism, this century’s
struggle does have an ideological component to it: between authoritarianism and
liberal democracy. This is not just rhetoric, or talking points for pundits on
CNN. Both sides, East and West, espouse the benefits of their different,
divergent forms of government. They are each seeking to contain the other, in
yet another struggle for the future order of the
world.
The full scale of the
Chinese onslaught on the West is only now being appreciated. In 2020, the House
Intelligence Committee reported that, without a significant realignment of
resources, the US intelligence community would not be prepared to meet the challenge
posed by China this century. The US government has only recently awakened to
the nature of this onslaught, and the damage done, and is struggling to catch
up. If I were to situate where we in the West are today compared to the last
century’s Cold War, based on public information and trends, I would place us at
approximately the year 1947: Western intelligence services are alert to the
nature of the national security threat, are turning their sights to it, but
they are chasing a horse that has already bolted the stables.
Matters are
improving. In October 2021 the CIA, under the leadership of the veteran
diplomat William ‘Bill’ Burns, established a China Mission Centre. According to
Burns in 2022, the CIA plans to double the number of Mandarin speakers in the coming years, though
that does not tell us much, without knowing how many Mandarin speakers were in
the agency before. MI5 tells us that its Chinese investigations have grown
sevenfold since 2018 – but again, from what number is unclear. Intelligence
collection, especially espionage, alas cannot be turned around quickly.
What about the
future? How this century’s clash of superpowers turns out is, of course,
impossible to know. As Joseph Nye, former chairman of the National Intelligence
Council, has reminded us, there are only future scenarios, not certainties. But
I will leave you with observations about where we seem to be heading, based on
where we have been. History, as Churchill noted, is a guide for the present and
what may lie ahead. Applied history is most usefully understood as history that
informs the present – a phrase I have borrowed from Paul Kennedy.
As Mark Twain used to
say history does not repeat itself, but it does rhyme. In the geopolitical
standoff between the United States and China, we can already see what those
rhymes will be: emerging technologies that will define our lives in the
twenty-first century, artificial intelligence, quantum computing, and
biological engineering. They are this century’s equivalent to atomic secrets in
the last. While last century’s superpower contest involved an arms race for
nuclear superiority and computing, this century’s contest will involve a race
for the control of data. The West does not appear to be winning the sprint for
AI.
According to the
Pentagon’s former software chief, who resigned in November 2021, the US
government has already effectively lost the battle to China over AI.
China’s massive data
collection strategy, across the globe, is ‘collect and store now, decrypt
later.’ This is where the East-West race for quantum computing poses such
dangers. By using subatomic particles, quantum computing will render obsolete
our existing public key encryption systems, which hitherto have been the
backbone of Internet cryptology. Whoever masters quantum will be able to
decrypt the data they have stolen and stored that uses public key encryption.
China is currently trailing Western companies like IBM in the race for quantum
computing – but it is catching up. The threat that quantum computing poses to
existing cryptology, however, is not as dire as even recently thought. As of
autumn 2022, private Western companies are offering open-market encryption
services invulnerable to quantum computing. The task for Western companies, and
governments alike, is to migrate existing and future data into such protected
systems starting now.
While there is thus a
‘fix’ to quantum, another looming threat, lies with the vulnerability of the
five or six big private companies that provide security certificates for the
internet. The internet relies on them. The companies are vulnerable to human penetration
or sophisticated cyberattacks. One company, RSA, already has been exploited.
Penetrating them would allow an actor to read encrypted communications, using
their certificates.
Another rhyme with
the Cold War is likely to be the influence of non-aligned countries, which will
again doubtless use the East-West clash for their ends. India has chosen to
align itself, yet again, with Moscow. Will Xi and Putin’s alignment with ‘no limits’
develop into a Bloc, a kind of Warsaw Pact 2.0, to rival NATO? Will there be a
split between China and Russia, like the Sino-Soviet rupture? Will Western
intelligence agencies be able to help policymakers exploit such a split?
Perhaps the war in Ukraine will become like the Korean War, a hot conflict in a
broader Cold War. And so on. It is unknown. Whatever the future has in store
for us, however, it is not difficult to see Hong Kong or Taiwan becoming last
century’s Berlin, contested cities, similarly buttressed by battalions of
spies. The application of history does have limits when it comes to informing
the present. Just as it is frequently a mistake to claim something is
‘unprecedented,’ it is equally mistaken to think there is nothing new under this
century’s rising red sun. We do live in a brave new world. We are on the brink
of the fourth industrial revolution, witnessing blurring boundaries between
physical, digital, and biological realms. This will fundamentally change how we
live, work, and interact with each other, in a way that will be as disruptive
to our societies as the first industrial revolution previously was.
Today’s
interconnected digital world is changing not only how we live, but also the
nature of intelligence and national security. All intelligence agencies are
having to rethink tradecraft. Maintaining espionage cover in an age of global
digital information is more difficult than it was even in the recent past. The
time of an analogue intelligence operation is over. Social media, and the
digital dust we emit as we use our phones – and are caught on CCTV, door or
dashcams – offer ubiquitous technical surveillance, forcing agencies to rethink
how they conduct traditional business.
In the past, Soviet
intelligence planned sabotage operations for the outbreak of hostilities
between East and West, during World War Three, by conducting physical
reconnaissance of critical infrastructure in Western countries and secretly
planting arms caches there for use during war. Today, there is no need for such
physical operations (though they do continue). Chinese hackers in the PLA’s
cyber unit, known as 61398 – as well as corresponding Russian, Iranian, and
North Korean units – can vault into the heart of Western governments and
critical infrastructure, planting malware on computer operating systems for
activation like delayed-action booby traps. Today approximately 85 per cent of
US critical infrastructure lies in the private sector, which dramatically
increases the attack surface for a hostile state like China.
Our new globalised information environment has inverted the nature
of intelligence. During the Cold War, it is estimated that US intelligence
derived 80 per cent of all its collection on the Soviet Union from secret
sources, namely technical collection and espionage, and 20 per cent from open
sources. Now those proportions are believed to be reversed. Governments no
longer hold a monopoly on intelligence. The future of intelligence lies with
the private sector, not with governments. Open-source (or commercially
available) data is already transforming the landscape of intelligence, leading
to an existential crisis among Western agencies. Outfits like Bellingcat and
C4ADS are revealing secrets about Russia and China, respectively, that
traditionally would have taken an intelligence service huge resources and time.
(Even then, success would not have been guaranteed.) Another open-source
intelligence start-up, Strider Technologies, has shown that the Chinese
government is exploiting scientific research collaborations at Los Alamos to
advance its defence industries in dual-use
technologies like hypersonics. The echoes of the
first Cold War – Los Alamos, home of the
Soviet atom spies – are blindingly obvious. As in the last Cold War, the US
government is effectively funding an adversary’s defence
industry. US government research grants for Chinese scientists at Los Alamos
have advanced Chinese S&T and decreased American competitive advantage.
Again, this information was derived from open, not secret, sources. Public
information about parking tickets, and patents, shines a light on what is going
on behind the digital and bamboo Iron Curtains. To stay relevant and continue
to provide a margin for decision-makers, traditional secret services like MI6
have to come out of the shadows, embrace, and integrate with new technologies
that can turn complex data into insights. This reiterates that this century’s
East-West intelligence war will be about data and who can best exploit it,
through machine learning and AI.
The history of the
last century’s epic intelligence war offers seven lessons for the superpower
struggle now unfolding between the United States and China.
First, the best defence is good intelligence. Given the unprecedented
Chinese assault on US secrets, good intelligence – timely, accurate, and
relevant information – will be key for Western policymakers to act decisively
about Chinese intentions and capabilities.
Second, intelligence
in this century will increasingly be dominated by open-source information.
There will continue to be a niche for traditional espionage. A well-placed spy
like Oleg Gordievsky can give insights into a
foreign leader’s mindset, and thinking, that would remain mysterious with even
the best open-source intelligence. The West must seek such sources. An ironclad
rule from the last century is that spies catch other spies; the same will be
true this century, requiring Western intelligence services to penetrate China’s
intelligence agencies to protect our secrets. But outside this niche area for
traditional espionage, this century’s intelligence war will be about
open-source data and the scientists who can exploit it. The age of a Secret
Service is over.
Third, Western
strategy regarding China must be based on strategic empathy. It would be a
mistake to put forth a grand strategic doctrine like NSC 68, which set out the
US government’s strategy to contain the Soviet Union but failed to address how
that doctrine would appear to those in Moscow. NATO made a similar strategic
miscalculation after the Soviet Union’s collapse when it failed to understand
Russia’s deep sense of humiliation and its intense desire to protect its
‘national interests.’
Fourth, Western
policymakers must use covert actions cautiously: they have limited practical
effect, can result in unforeseen consequences (‘blowback’), and tend to
embitter relations between superpowers. Whether it is regime change, degrading
alliances, or discrediting targets, covert actions are only effective when they
supplement diplomacy and statecraft. Seductive as they are as a quick fix for
failed diplomacy, covert actions cannot replace overt foreign policy. Outside
of the Soviet-Afghan war, and perhaps US support for the anti-Soviet Solidarity
movement in Poland (QRHELPFUL), it is difficult to think of a single US covert
action that provided a long-term strategic success.
Fifth, information
warfare in this century’s cyber age will continue to involve the insidious
spread of disinformation, which can cause us to question the existence even of
facts and truth. ‘Truth decay’ cannot be solved by Western clandestine services
alone – that is the true lesson of US efforts to counter Soviet disinformation.
Intelligence agencies of democracies can do their best to counter online
disinformation. But their efforts will never be sufficient; like chopping off a
hydra’s head, more spring up on social media. The answer to the challenge of
algorithmically driven disinformation lies with the patient, long-term
education about online information – digital literacy. What is required is a
broad-based public-private effort, a new Marshall Plan of the Mind.
Sixth, the
intelligence war between East and West will persist whatever happens overtly
with relations between China and the US, whether they improve or deteriorate.
Russia, past and present, has used its intelligence services offensively
against Western countries when their defences were
down, as a result of improved relations, or when they were distracted
elsewhere. There is no reason to believe that China would not do the same.
Western governments must be alert to this and expect it. Seventh, and finally,
the US government must be as transparent as possible about the known nature and
scope of Chinese espionage and other illicit activities. Chinese clandestine
efforts must be disclosed, challenged, and debated.
One of the major
conclusions from last century’s intelligence war between East and West is that
two incompatible things can be true at the same time. Just as with Soviet
espionage, Chinese espionage can be real – and Western democracies can create
McCarthyite witch scares. Chinese intelligence actively recruits from Chinese
diaspora populations, but few Chinese Americans become spies. They are
frequently victims of Xi’s regime. Operation FOXHUNT involves Chinese
intelligence officers targeting, capturing, and repatriating Chinese citizens
overseas who are considered to be political threats, often by using threats to
family still residing on the mainland. Over eight years, about nine thousand
people worldwide were hauled to China as part of FOXHUNT, some of them US
nationals. While the Chinese government undertakes every kind of covert
activity, the FBI also makes mistakes. The FBI wrongly accused a professor at
Temple University, Xiaoxing Xi, a naturalised
American citizen and world-renowned expert on superconductor technologies, of
being a Chinese agent. The same happened to Gang Chen, an MIT professor. He was
cleared in January 2022 after a lengthy DoJ
investigation but is stepping away from federally funded research because of
anxiety about being racially profiled.
There is a real
prospect of a new Red Scare, targeting US citizens who happen to be of Asian
descent, chilling free speech and academic freedom, with innocent citizens of
Western countries wrongly accused of being Chinese spies. We do not know
whether Charles Lieber, former chair of Harvard’s Department of Chemistry and
Chemical Biology, was a Chinese agent. He has been convicted of taking Chinese
money, which he hid from Harvard and the National Institutes of Health. That
does not necessarily make him a spy – he may simply have made bad decisions. It
is time for an urgent public policy conversation about the nature of Chinese
illicit activities in the West, and the balance that Western democracies are
prepared to strike between national security and civil liberties. Sunlight
remains the best disinfectant.
The American Century,
if we understand that to mean the age of America’s global leadership, so termed
by the American media magnate Henry Luce, is now
over. When the history of this period comes to be written, we may well conclude
it came to an end in 2016. Under a president willing to ride roughshod over
norms and laws, the United States experienced the seductive pull of
authoritarianism. Strong leaders, the cliché says, can ‘get things done.’ One
of America’s foremost experts on Russia, Fiona
Hill, has concluded that the United States risks becoming like Russia.
Given the levels of nativist populism, violence, partisan divide, political
corruption, and a recent coup attempt in the US, it is hard to disagree with
her. (Trump, inevitably, dismissed Hill, who is English-born, as a ‘deep state
stiff with a nice accent.’) In 2017, the Economist Intelligence Unit downgraded
the United States to be a flawed democracy. It has remained such in reports
since. American democracy has arguably gotten worse, rather than better, in the
years since. America has many similarities to the corruption and mob rule that
the ancient historian Polybius wrote about, in the quote at the beginning of
the chapter, when explaining the rise of the Roman republic (read: China) to
replace the Greek city-states (America) as the dominant Mediterranean power.
The ultimate damage
that Trump inflicted on American democracy lies with the Big Lie: his claim,
without evidence, that he did not lose the 2020 election – that it was ‘stolen’
from him. The refusal of Trump to concede that he lost, fearing he would be branded
a loser, was insidious enough. But then, on 6 January 2021, he helped to
instigate a coup attempt at the Capitol to
overturn the election result. He was indifferent about his vice president being
killed for his ‘betrayal’ – for not being loyal enough to the president to
ignore US law and join in Trump’s plan.
This is the stuff of
tin-pot dictatorships. It has a direct precedent, as we saw earlier in Chile
when the US government tried to rig the election of Allende. Swap the name
Biden for Allende, and the parallels with Trump’s effort to suborn electors to
overturn the 2020 election hit you in the face. Both tried to pressure electors
not to ratify a democratic election. What the US government did overseas in the
past is now being done at home. Speaking in October 2022, former CIA director
Michael Hayden, who spent a career analysing
dangerous foreign regimes, said that he believes the US has a fifty-fifty
chance of surviving.
If you travelled
overseas as an American during Trump’s presidency, it became quickly apparent
that his administration made our country into a laughingstock on the world
stage. Trump’s America appeared like a crumbling edifice, like his former Taj
Mahal in Atlantic City. Since Putin’s war in
Ukraine, the Republican Party has tried to rewrite its recent past, but we
should not forget that in the 2020 US election, Trump used Russian
disinformation, claiming that Ukraine, not Russia, was responsible for meddling
in the 2016 election. He then tried to withhold crucial weapons for Ukraine and
attempted to blackmail the Ukrainian president, Volodymyr Zelensky, earning
Trump the first of his two unprecedented impeachments by the House of
Representatives.
When Barack Obama was
elected president in 2008, I thought – naively – as an American who has lived
overseas most of my life, that the issue of racism in the United States had
finally been consigned to history. Instead, Obama’s presidency threw fuel on a
simmering fire of racism in US society. Trump’s presidency appealed openly to
the country’s nativist fears, and to white nationalists, who were eager for a
champion. He encouraged fringe ideas and conspiracy theories, like QAnon, which holds that Democrats are a cabal of satanic paedophiles and cannibals out to sabotage Trump, to become
respectable and mainstream. (Its leader, Q, holds a Q-level security clearance,
used for nuclear secrets, and therefore knows what is ‘really’ going on, you
see.) Hostile foreign governments like Russia saw the paranoid strain in US
politics and exploited it.
The US domestic
situation is dire. That said, China’s continued economic rise is not
guaranteed. President Xi may be physically
imposing, at nearly six feet, but China is not ten feet tall. Beijing has had
to impose emigration restrictions to stop a brain drain from China. Xi’s ‘China
Dream’ may already be over, and could become a nightmare through a war with Taiwan,
for example. Worryingly for the rest of the world, a China in decline may
become an even more dangerous player. As Russia shows, a superpower that never
achieves the global dominance it believes it deserves is a dangerous one,
capable of unleashing an aggressive clandestine foreign policy. Decline
increases risk-taking.
For all the West’s
problems, most people, I believe, would still rather live in the United States,
Britain, or, if you are lucky enough, Europe, with their democratic freedoms,
than under China’s digital authoritarianism. I am free to criticise
the US government in ways that would land me in jail in China or Russia. As
Winston Churchill said, democracy remains ‘the worst form of government –
except for all the others that have been tried.’ Democracy and freedom are also
worth fighting for, as Ukrainians are bravely showing. Russia’s war in Ukraine
will hopefully lead to a renaissance of democracy over authoritarianism. With
luck, that will be the history of our future, the next chapter of the epic
intelligence war between East and West.
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