China's Tech Triple Play Threatens U.S. National Security
Chinese Communist Party Chairman Xi Jinping has boldly declared that technological innovation is the "main battlefield" in China's quest for global preeminence. But, Beijing's ambitious bid to transform itself into a global science superpower is not merely an economic imperative—it is a means to strengthen China's military might and cyber capabilities, with grave implications for the United States.
The Triple Threat: Penetrating, Prepositioning, and Profiting
At the center of Xi's vision are what he calls China's "new productive forces"—breakthroughs in advanced batteries, biotech, LiDAR, drones, and other emerging technologies that promise to redefine the next industrial revolution. By dominating these sectors, Beijing aims to ensure Chinese technology is deeply embedded within critical American supply chains—everything from power grids and ports to communications networks—and thereby converting China's commercial success into a powerful geopolitical tool of leverage.
Beijing's strategy is unfolding in three interlocking phases: penetrating, prepositioning, and profiting—which together form an insidious framework that both erodes America's technological edge and undermines homeland security. Recently exposed Chinese state-sponsored hacking campaigns—Salt, Volt, and Flax Typhoon—exemplify Beijing's systematic approach to penetrating U.S. networks and critical infrastructure.
The Salt campaign exploited vulnerabilities in telecommunications systems, allowing attackers to intercept voice and text communications and thereby compromise both civilian privacy and government operations. The Volt operation targeted industrial control systems, breaching energy and manufacturing networks to gain remote control over essential infrastructure. Meanwhile, Flax Typhoon focused on defense and government networks, exfiltrating sensitive data and installing persistent backdoors to facilitate future sabotage.
Infiltration and Prepositioning: A Systematic Approach
Collectively, these campaigns reveal how Chinese hackers methodically exploit software and hardware weaknesses to harvest critical intelligence and maintain enduring access to sensitive U.S. networks, often with next-to-no consequences. Yet infiltration is not an end in itself. Once inside, Beijing systematically prepositions latent capabilities throughout our physical and digital supply chains, setting the stage for future coercion.
Today, Chinese-made LiDAR devices underpin smart city systems, autonomous vehicles, and certain aerial reconnaissance platforms. Similarly, Chinese-produced surveillance cameras and drones are integrated throughout our transportation network, including at major U.S. airports. Even critical infrastructure components like cranes in U.S. ports and batteries connected to our grids have morphed into strategic choke points, according to Congressional investigations.
The Profit Factor: Turning Commercial Dominance into a Revenue Stream
In a conflict—or even a severe diplomatic crisis—these systemic dependencies could confer a decisive advantage to China. By withholding critical parts or inflating prices at a pivotal moment, Beijing can exploit these supply chain choke points to hamper U.S. readiness. Prepositioned exploits could degrade or disable U.S. command-and-control systems, sabotage energy grids, or paralyze transportation networks—potentially stalling America's response before a single shot is fired.
The final phase of Beijing's strategy is profiting from these dependencies, turning commercial dominance into a revenue stream that reinforces its military-civil fusion. Chinese high-tech exports, ranging from advanced sensors and biotech innovations to drones and surveillance cameras, generate billions in revenue every year for Beijing. These profits are not reinvested merely for commercial growth; they are often funneled directly into programs bolstering People's Liberation Army's R&D efforts.
The Stakes Are High: Protecting America's National Security
The House Homeland Security Committee, along with other congressional panels, has convened hearings spotlighting the threat. The stakes are clear: if we fail to respond decisively, we risk losing our technological edge and compromising our security.
Fortifying Our Networks, Enforcing Meaningful Consequences, and Investing in American Innovation
To mitigate this threat, we must commit to robust innovation at home. America can't meet the Chinese challenge simply by playing defense. Expanding federal R&D, incentivizing private-sector breakthroughs, and aligning workforce development with future technology needs will ensure that the United States remains a leader in the very fields—biotech, AI, quantum computing, energy storage—where China seeks supremacy.
Xi's "main battlefield" is already upon us, and America can no longer afford complacency. By fortifying our networks, enforcing meaningful consequences on malicious actors, and investing in American innovation, we can ensure Xi's ambitions do not come at the expense of our prosperity and safety.