China Tech Investment Flying Under the Radar, Pentagon Warns -
By PAUL MOZUR and JANE PERLEZAPRIL 7, 2017
HONG KONG — China is investing in Silicon Valley start-ups with military applications at such a rapid rate
that the United States government needs tougher controls to stem the transfer of some of America’s most promising technologies, a Pentagon report says.
“The U. S. government does not have a holistic view of how fast this technology transfer is occurring, the level
of Chinese investment in U. S. technology, or what technologies we should be protecting,” the report said.
In some instances, Chinese companies have made under-the-radar investments intended to dodge the oversight
of a government agency, the Committee on Foreign Investment in the United States, known as Cfius.
President Trump has said he would resist Chinese trade tactics
that put American companies at a disadvantage, though it is unclear whether the topic has come up in meetings with President Xi Jinping of China that began on Thursday and continue Friday.
“Notably, the investments were designed to make advanced LiDAR sensors more accessible to the
broader industry, resulting in the development of safer, less expensive autonomous vehicles.”
Ashton B. Carter, the former secretary of defense, commissioned the report as an urgent review of what senior Pentagon officials have considered China’s alarming penetration of Silicon Valley, particularly in deals
that finance nascent technology that has military applications.
