China's Threat to the Fed: Chinese Influence and Information Theft at U.S. Federal Reserve Banks

Publication

China's Threat to the Fed: Chinese Influence and Information Theft at U.S. Federal Reserve Banks

Abstract

The Committee on Homeland Security and Governmental Affairs released a Minority Staff report regarding the findings of a 2019 investigation by the Permanent Subcommittee on Investigations, chaired by Senator Portman. The report details China’s exploitation of talent recruitment programs to target the U.S. science and technology sectors, perpetuating malign influence and information theft campaigns against institutions like the Federal Reserve. It highlights the Federal Reserve’s lack of effective policies and procedures to counter these threats. Recommendations include enacting the Safeguard American Innovation Act (SAIA) to protect taxpayer-funded research, developing strategies to combat intellectual property theft, enhancing relationships with law enforcement agencies, improving confidentiality protections, and promoting a “Know Your Collaborator” culture for monitoring collaborations.