America’s Battle Against China’s Vast Spy Network

America’s Battle Against China’s Vast Spy Network

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Commentary

It’s not a conspiracy theory to say that China has one of the world’s more comprehensive intelligence-gathering systems and has been targeting the West, especially the United States, for decades.

The Chinese Communist Party (CCP) employs a vast array of tactics, including stealing data through state-sponsored cyber theft, coercing academics and compromising U.S. elites, stealing intellectual property, compromising U.S. infrastructure, and corrupting government officials.

The Geopolitical Realism of ‘America First’

The Trump administration has responded to Beijing’s multifaceted threat matrix not only with rhetorical warnings but also with a series of sweeping policy actions and legal initiatives aimed at confronting the CCP’s malign influence across technology, academia, and finance.

Contrary to the approach that prior administrations have pursued—that of treating China as a partner or even a competitor—the Trump administration’s strategy is based on “America First” geopolitical realism, as laid out in its 2025 National Security Strategy (NSS). In that report, the administration prioritizes U.S. prosperity and security through deterrence and strategic competition rather than relying on diplomacy and marginal changes around the edges of a very one-sided relationship.

Consequently, the entire federal apparatus, led by the Departments of Justice, State, and Commerce, has been directed to shift from an attitude of engagement and accommodation to one of confrontation against the CCP’s aggressive and entrenched intelligence operations.

The AI Chip Pivot and Realignment of Technology Export Controls

The Trump administration has focused its efforts with decisive measures in specific areas of concern, with approaches that may seem counterintuitive at first.

For example, the most significant technology action this year involves a major shift in how the United States restricts the export of advanced artificial intelligence (AI) technology. The administration reversed the previous policy that prohibited the sale of highly advanced AI chips to China. President Donald Trump recently announced that Nvidia would be allowed to sell one of its best chips—H200 processors—to approved commercial customers in China

However, this permission comes with a unique condition: the U.S. government collects a 25 percent fee on these advanced chip exports. This move aims to balance national security concerns by maintaining a degree of control, while advancing the economic goal of ensuring U.S. companies maintain market share and that American technological standards, not China’s, become the global norm.

Simultaneously, the Justice Department has initiated a major crackdown on a China-linked smuggling network that had been illegally moving previously restricted, advanced AI chips (such as the H100 and H200) into China, showing an effort to prosecute those who violate export controls.

Protecting US Capital and Technology: Outbound Investment Screening

Stopping the flow of intellectual capital is another priority of the Trump administration. It is attempting to prevent U.S. capital and know-how from flowing into Chinese military and intelligence sectors by utilizing the Committee on Foreign Investment in the United States (CFIUS) to rigorously screen and restrict Chinese investments in strategically sensitive American sectors, including technology, critical infrastructure, and raw materials.
Furthermore, the administration is committed to establishing new rules to curb the exploitation of U.S. capital and knowledge, including restrictions on U.S. outbound investment to China in critical technologies such as semiconductors, AI, and quantum computing, to prevent U.S. funds from supporting China’s military advancement.

Exposing CCP Elite Capture and Political Influence Traps

The Trump administration is aware of the threat posed by the CCP’s efforts to cultivate and coerce the elite of American society, which includes political and business leaders, to ensure they make decisions and cast votes that favor Beijing’s interests over Washington’s.
According to one analysis, the CCP leverages and controls foreign elites in three basic ways: money, personal relationships—including targeted romantic entanglements—and the use of China’s extensive organ transplant system. Targeted elites in the United States include highly positioned or influential people such as former U.S. Treasury secretaries, university presidents, and even former CIA directors. The objective is to control or influence policy decisions and the views of U.S. elites in or near centers of power.

Senior administration officials, including State Secretary Marco Rubio, have delivered a series of public speeches to inform the American people, business community, and allies about the pervasive nature of the CCP threat. But Beijing’s focus on elites goes well beyond American shores.

A recent NATO report identified campaigns by China targeting members of the alliance are “spreading further and faster than ever before.”
The U.S. Justice Department is also focusing on enforcing existing foreign influence laws, such as the Foreign Agents Registration Act (FARA), to target covert efforts by unregistered agents to influence U.S. policy and public discourse and to advance the CCP’s political agenda. This underscores the espionage risks inherent in political influence campaigns.

Why the Threat Level Must Be Raised

The need to raise the threat level stems directly from the CCP’s strategic decision to leverage every tool of state power—military, economic, and political—to undermine the United States. The Trump administration concluded that decades of engagement had failed to temper Beijing’s authoritarian trajectory.

What’s more, the CCP’s adversarial activities against the United States are accelerating. Chinese hacking is no longer limited to espionage; it has been found to be prepositioned within U.S. critical infrastructure (telecoms, power grids) to enable disruptive or destructive cyberattacks in a future crisis.

The Chinese regime is without doubt the most formidable and determined geopolitical competitor, challenging American power, influence, and interests globally. Finally, as far back as 2018, the first Trump administration described China’s unrelenting theft of massive amounts of intellectual property as “one of the greatest transfers of wealth in history.” That fact hasn’t changed and is directly damaging the American economy and American competitiveness.

All of these factors pose an imminent threat to the well-being and security of the United States, which explains the confrontational policies the United States is now pursuing. In short, the Trump administration recognizes the fact that the CCP’s widespread and highly effective intelligence activities pose an existential threat to the United States and the entire free world.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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