ABSTRACT

A multitude of ways the PRC acquires technological knowhow is examined in Chapter 12 via two full case studies, plus vignettes of emerging technologies. These highlight the impact of a comprehensive, multi-layered, interdisciplinary strategy to acquire specific technologies and build specific industries. We address the difficulties of democratic systems combating these tactics, given underlying assumptions about globalization. This “impact” chapter highlights common threads across targeted industries and technologies; each is a strategic priority, all segments of China’s S&T infrastructure are deployed to extract, the lure of the China market is used to force transfer, and the CPC seeks plausible deniability wherever possible. The first case study is Nortel, a Canadian company that rose high then collapsed dramatically in 2009, due in part to an early wave of cyber and traditional espionage as Huawei rose. The second is NucTech, a Chinese, state-owned borders scanning and security company, which copied a piece of European technology in the 1990s and won big.