How China Steals US Technology for Profit | China Uncensored

On this episode of China Uncensored, how the Chinese military’s theft is costing
America trillions of dollars a year hi welcome to China uncensored I’m your host Chris Chappell as I always say: good artists copy, great artists steal which means there’s no greater artist than: “we sampled them from them but it’s not the
same base line” sorry I was actually talking about: economic espionage by members of the Chinese
military yes the Chinese military it’s perhaps the world’s most prolific and
successful thief of course the Chinese government denies it I wanna stress that the Chinese government
resolutely bands and cracks down on any form of hacking activity this position is consistent and clear right… the Chinese government cracks down on its
own military anyway by now it’s widely known that: hackers associated with the Chinese government
have repeatedly breached the computer systems of U.S. companies but how does that translate into actual profits
for Chinese companies and losses for American ones? introducing: Technology Transfer Centers As early as 2001 the Chinese Communist party
started building a systematic mechanism to not only steal intellectual property from
foreign companies but also to reverse engineer that technology
and make it available to Chinese companies that then can use it to out-compete the same
foreign companies they stole the technology from. although this has been going on for more than
a decade it’s only recently that we’ve understood the missing link of how this works there are actually three pieces to China’s
nationwide system of economic theft the first piece is the Chinese military they hack, they spy, they steal whatever it takes to obtain raw information
like blueprints, data, trade secrets and so on the second piece is the transfer centers they have trained experts process this raw
information into step-by-step designs that are actually usable the third piece is Chinese companies some of them are state-owned some are private many of them are run by people with party
or military connections they get the designs from the transfer centers
and use them to make Chinese versions of foreign products let me give you an analogy it’s the Iowa State Fair and grandma chapel
has won first prize for her famous apple pie now folks from all over come to buy her delicious
pastry one day she’s in her kitchen baking when my
golly she notices two Chinese tourists taking photos
through the window well shucks they look friendly enough the next day these friendly folks stop by
her pie stand and tell her how much they love her pie and that they just be tickled to take a few
pies back home to their friends in China well sure little does grandma know what these two tourists
are planning they take her pies to the transfer center
run by the beijing new oriental Culinary Institute where they’re analyzed by foreign trained
pastry chefs and reverse engineered into a step by step
recipe then the recipe is sold to a Chinese company so it’s a year later grandma chapel is setting up her pie booth
again at the Iowa State Fair but this time there’s a new competitor selling
apple pies that taste almost the same but for half the price poor grandma can no longer compete obviously this is just a made-up example my grandma’s from California not Iowa but this kind of thing really does happen like how in june 2011 employees of American
superconductor Corp discovered that their design for the computer chips that
run wind turbines had been stolen the company’s biggest customer “china sinovel
win group” had suddenly stopped using the American chips
to run its turbines and instead began using knock off ones based
on the American source code since this theft also robbed American superconductor
of its biggest customer it lost more than eighty percent of its stock
value within six months this kind of thing doesn’t just happen sometimes it happens constantly on a massive scale in december 2007 the Chinese government literally
wrote economic theft into its national economic plan back in June I interviewed cyber-espionage
expert joshua philipp today he published a groundbreaking article
in The Epoch Times that for the first time reveals the scope
of China state-authorized technology transfer centers Josh thank you for joining me again to help
me further undermine china so your article exposes these technology transfer
centers what’s the big deal about them? right, so when people talk about Chinese cyber
espionage, they often talk about the cyber attacks or
the spies steal the technology or they mentioned vaguely the Chinese companies
are profiting from this the transfer centers are the place between
the two of those that process the stolen technology from the
military and then pass them to the relevant Chinese state-run industry so they’re sort of the the in between that
reverse engineers what is stolen exactly and the funny thing about them is
they don’t even try to hide it if you read their doctrine if you read what they even say about their
companies they, I mean they call themselves China’s
National Technology Transfer Centers this is totally open open, open, functioning through Chinese universities
or under Chinese companies _________________________________________________________________________________________________________————–
or illa ties the Chinese military and nobody seems to talk about them the Technology Transfer Centers exist throughout
the entire Chinese system they exist in the military they exist on the government side of the Chinese
regime under the state council they exist under universities they exist under businesses so this is an incredibly powerful organization
you’re talking about well it’s not just an organization this is something the CCP set up something the ccp created and then encouraged
people to duplicate as a system that just permeates the entire
Chinese economy as a way to steal and process stolen information this is a system that is massively larger
than what anyone today is thinking about when they when they talk about Chinese espionage for some reason it’s crazy this is the missing link in understanding
the Chinese system for economic theft they have a step-by-step process for stealing
information for processing the information and for drawing a profit from the stolen information – how many Americans are being affected by
this? well this this affects every American this is something that not only affects U.S.
innovation that not only affects U.S. companies and taxpayers
and services supported by taxes it also affects our basic ability to innovate
and to benefit from what we create in your article you quote Casey Fleming who is the chairman CEO of black ops partners
corporation and he gives a number that this is costing
the U.S. five trillion dollars a year which is about a third of the country’s GDP that’s so much freaking money how is that possible? what Casey is talking about is the potential
market value over a ten year lifespan so basically not just what information was
stolen but what value would that have had when it
actually went to market across a 10-year span of market value we’re talking about five trillion dollars
a year so in that 10-year period it would be about
five trillion dollars every year that’s right and he’s looking not just at reported cases which is where things get out of whack because most companies don’t want to report
cyber-attacks Casey’s working with companies that have been
victims and who don’t report that they’ve been attacked because they don’t want to cause their shareholders
to freak out they don’t want to cause customers to freak
out they don’t want to get their CEOs fired which has happened to, I think, Target, and
quite a few other companies that have reported cyber attacks so it’s basically “blame the victim” so Casey is seeing a different side of this he’s seeing the number of cases that have
not been reported he’s looking at cases of stolen technology
that we don’t know about so why don’t we just hack China and steal
their ideas? right so there are some companies that have asked
permission to launch counter attacks and they’ve been told not to do so it’s because we are a country of laws and
we can’t get away with that kind of stuff but this is something I hear a lot What right does the U.S. have to criticize
China for this? isn’t the U.S. the biggest cyber aggressor
in the world? U.S spying is just spying it’s just listening to conversations it’s listening to high-level dialogue and its trying to analyze strategies and opinions
on the west it’s trying to figure out: are you planning
to attack us, are you really our friends? are you plotting against us behind our backs? it’s that kind of stuff this is the kind of stuff that every spy organization
in the world is engaged in the stuff China is doing is that, in addition to actually stealing things from
other countries and then taking that stolen information and
using it to undermine that country thanks for joining us Josh thank you that was all really really scary I provided a link in the description below where you can read Josh’s article let me know what you think thanks for watching this episode of China
Uncensored I’ll see you next time

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100 thoughts on “How China Steals US Technology for Profit | China Uncensored

  1. There is a phenomenon in Chinese culture which states that if something is duplicated exactly as the original, IT IS the original. A ship is destroyed? Rebuild it, it's exactly the same ship! The US F-35 stealth fighter? Reverse engineer it and call it the J-31, it's exactly the same!

  2. just copy the chines Yuan ¥ money. Copy it in billions. There is no intellectual property there. They don't respect patents? Let's not respect their money. Print it so professionally that not even they could tell the difference. Flood the market using wrong Yuan ¥. They will claim that it is a crime to steal the value of them. Then they understand the value of property. Just do the same and let them understand. The US government should print YUAN ¥ money so professionally that the Chines cannot tell the difference. Stop it when they respect patents = work done by you.
    Flood worldwide markets using halve a trillion false ¥. Do as they do. Then they stop.

  3. This comment will attract hates but I must ask. Are these similar actions that other nations took moveable type and fireworks from China and turned them into more advanced versions? I'm not defending anyone but this kind of activities have existed thousands of years. You could say it is "stealing", but they do make better versions for the market. It is normal that the market drives to better products. We, as consumers, would like to have better technology, pies, etc.

    It is also normal for businesses to buy and study competitors' products. If you don't know what your competitor has, you don't know how you should improve your products. I strongly believe it happens everywhere in the world as well. So, is it "stealing" or is it just normal business activity?

  4. The paper you cited about technology transfer is about promoting college research into industry application, sad 4 you…

  5. Intelectual property is a big bullshit. Nobody, neither governments neither enterprises own the information or the knowledge. Property is an human creation based on scarcity. Data aren't scarce resources. For the free exchange and circulation of data, without any constraint.

  6. Donald Trump needs to reverse engineer the great Wall 🤔 then give Mexico the plans on how to rebuild it.🤣 That's reverse , reverse psychology.

  7. And dont forget the CRISPR Biological Technology. Jennifer Doudna first published her discovery by using it in bacterial host cells. Then some exchange Chinese students hastily published their own using human cells which is very dangerous and unethical. Good luck to their test subjects.

  8. Trying to remember when was the last time there was any good news from China. Can't remember… Additionally, Chinese women are heartless, too. Reference:

  9. serves americans right, they tried the same with india's mars mission even though india agreed to share data. this video is like pot calling the kettle black

  10. "US spying, is just spying." HA! Total bullshit, the US subverts other nations all the time, we do a lot more then listening in.

  11. Yes. The strength of Chinese is stealing. They are particularly strong in stealing technology, especially of which the USA has not yet been invented, say, 5G, etc..

  12. These examples are too simplistic.

    Things are not that esily reverse engineered when they are important. China cannot even produce knock off coca cola.

  13. God damn chinese, stealing for economic gains. Why don't they just do what every other civilized country does to gain economic strength, build drones and invade oil rich countries.

  14. Just look at Chinese jet fighter J-31, a direct copy of Lockeed Martin F-35 JSF. They ask for technology transfer. If it does not work, then steal by hacking American computers.

  15. THEN…… We get these copy and paste idiots that insult us on YouTube comments “Wumao” that tell us how innovative that mainland China is……

  16. US companies are stupid and complacent. if you have valuables… store it in a safe place. The thief is wrong but you should be blamed for being dumb!

  17. "We are a country of law…" Should we believe that US doesn´t spy China?/What about american style?: Texas slow invation . annexion of more tan a half of Mexico – "Remember the Maine" – threats and military presence in the Harbour of Tokio, to obtain Japan´s opening to commerce (1853) – political games with other governments of America (the continent) – Ignoring the UN resolutions and laying (i.e.: Bush and Saddam's massive destruction weapons)… Every country have their own methods; just happens that China is big enough to do some things to US with no fear, that is the problem. Are receiving a bit of the same US give

  18. Brilliant video. Previous US administrations have been criminaly neglegent in their sworn duty to protect American businesses and American jobs. Let THAT be Obama's legacy. This mostly happened under his 8 years and he did almost NOTHING besides a pointless tariff on imported Chinese car tires, which he soon backed off.

  19. China has more patents approved each year than US in the US since 2017. I want to know why US approved those patents that are mostly copied from the US.

  20. What baffles me is why no one is aware of suing cases against China. Surely IP laws would prosecute and would be highly publicized in western media. So why is that there's no media circus? Could it be that China has complied with the rules in buying foreign tech? West can buy tech from each other.

  21. china has the most resource to invent technologies, instead theyre using it to replicate existing technology, like come on. be creative.

  22. It goes back to their history If one reads the history of rival dynasties and monasteries in China and how they were stealing secrets from each other and add these historical facts to communist espionage and training then you will not be as much surprised by today's Chinese methods of stealing information or shall you?

  23. I am seeing this in 2019 and still nothing has been done to really punish China over it. Trump is doing a bit but still ffs this is so wrong.

  24. stop import their shit their shit is fake poor quality dangerous anyway china is leading in almost every thing exported just stop they wont dare do anything to u they brave toward Vietnam Filipinos and sea they cant do shit to us and hey since copy right wont work in china why not yall the world copy all their inventions and make it yours like they did and profit like idaho's wonton denver's bear's feet soup upgrade it and claim that shit

  25. So if we patent in China their Tech Transfer center can let their party member affiliated companies copy the tech?

  26. USA should copy China inventions assuming they have something remarkable eg. Xiao mi products. Eg. Ban xiao mi from being imported into USA and manufacture their products in USA or Mexico. Is this not what trade war should be?

  27. China stopped innovating when the commies took over in 1949. Now they just steal because they pump out only robots from school (convergent thought) as diversity of thought and ingenuity in school years is severely beaten out of you.

  28. Shameless thief dogs. And they keep flaming internet about their fictional "world leadership" in "X", "Y", "Z", etc. Shameless thieves. Disgusting.

  29. Look at all these racist shitheads. Balding agent smith over here is probably CIA shill. We all know he’s Falun Gong shill

  30. Epoch Times is Falun Gong, which is pretty much Chinese Scientology. Nice job guys you fell for Falun Gong fake news. At least have the decency to get your fake news from CNN an American company

  31. China does spy and steal, but western countries are no saints either…They were on a race to steal the hi-tech when Germany fell after second world war…USA announced rewards and refuge to any North Korean army pilot who will bring a Mig in tact..Thousands of examples like these!..West will do it again, if any of Chinese tech seems tempting to them! So the western countries got nothing to Whinge here! You are masters at copying and stealing! China is just repeating it!

  32. the principle of patent law is by opening the tech to public in exchanging of protection for a certain time. If a company decide to keep their tech as a business secret, they can not blame others to sell the similar product after they figure out how to produce the similar thing.

  33. is this the same process of how fake dvds and fake louis vuittons are made , the militarily steals the data then goes to the research place then gives to chinese companies to make a fake version.

  34. whites should not accuse asians of stealing…they themselves stole a lot from their so called colonies.

  35. I work in the drone industry and every time when a new developer thinks of an innovative and clever technology within weeks sometimes days it can be bought from ebay or other online stores as a clone. The copies are almost always a terrible material quality but within a short period the copied items are manufactured using better quality materials. So the Chinese copy the new tech, make money selling cheap knockoffs then use that money to develop the technology further. What it does is it puts the original developer out of business by making the product too cheap and being unable to compete when customers start buying too many. Then the Chinese copier are able to spend the profits on developing the technology further and then have taken that market for themselves. It is going on so frequently that it is becoming impossible to continue in this business for many western companies. I live in Australia and this is happening to New Zealand, United Kingdom and Europe markets, and Australian and American markets. It is now at the point where western markets are unable to compete because it has been happening so long Chinese markets now have the edge over ours because they have more automated factories and have displaced us from the manufacturing industry.

  36. "Undermine" is really an inappropriate word to describe China. how could China undermine America? During the sixties of last century, China was under blockade from Soviet Union and America, but still tested nuclear bomb successfully. China just use the technology to defend herself.

  37. US propaganda check
    US exceptionalism check
    Dramatic story check
    "Trillions of dollars" check
    For those who haven't realised it yet …
    He's just playing around with your emotions
    And manipulating your opinions

  38. US universities steal intellectual property of foreign students. How else can you expect these idiots to compete

  39. Sinovel is not owned by the CCP.

    After trying for hours to find any links between Sinovel and the CCP I haven't managed to find any evidence saying they ARE run by the CCP.

    for repliers:
    Inb4: "all chinese companies are stated owned" This is not true, and it shouldn't be asserted that the CCP runs Sinovel unless we have proof.

    inb4: "50 cent"; STFU, the whole reason I raised this issue is because I'm writing a paper on CCP violations of IP because I despise the CCP. But I can't provide compelling reasoning behind my thesis unless that reasoning is backed by factual evidence.

    I really wish you guys would provide your sources.


  40. The reason why the Chinese steal American technology is because the USA through their extreme stupidity! actually allows r ampant Chinese immigration in to the USA! And then at a later date! they bleed into Canada! And once they are in, the theft begins! First they buy prime properties in the sun! Eg: Vancouver! In Canada! and Calgary in Alberta! Once they are established! and are in! they report to the communist party!all their findings! of stollen technology. Wake up! you sleepy one's!

  41. Yes,, but please lets also talk about the BIOPIRACY being done by Chinese, U.S. and European pharmacological corporations stealing ancestral knowledge of tribes and local communities around the world not giving anything back in return.

  42. How does China expect to survive if it actually manages to kill the the goose that lays the golden eggs it's so busy stealing. What a pathetic nation.

  43. That's $90 trillion lost since 2001! Amazon and Ebay sell us the goods, downrank the originals. You can fight it by buying the real stuff.

  44. ** Read Joshua Philipp's exclusive article ** (new link!!!)

  45. It took them decadesto infiltrate and subvert our culture. We will show them how to accomplish the same thing to china….IN MONTHS.
    The ironic thing? That wierd little chinese leader actually figures he is going to "empire build" in this day and age. You will not survive that as a nation is my prediction.

  46. Ok world get new low cost technology thanks to China… America just want monopoly in world..

    China doing good.. It is called reverse engineering.. Not stealing any country can do it… But it is not easy…

  47. Holy crap… how is the info being stolen without being detected? Do they reverse engineer the product, or the code/programming?

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