China Exploits $2.5 Billion Pentagon-Funded Research, House Report Says

China Exploits $2.5 Billion Pentagon-Funded Research, House Report Says

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The Biden-era Department of Defense (DOD) funded hundreds of research projects involving Chinese universities and institutes tied to China’s military industry, including ones already on U.S. government blacklists, a congressional investigation has found.

The 80-page report, released on Sept. 5 by Republicans on the House Select Committee on the Chinese Communist Party, identified about 1,400 research papers published between June 2023 and June 2025 that acknowledged Pentagon funding or support, while also involving collaboration with Chinese entities.

More than 300 Pentagon grants were connected to these studies, and over 700 projects were conducted with institutions affiliated with China’s defense research and industrial base, the report said.

The collaborations, valued at more than $2.5 billion, covered “sensitive” research domains such as artificial intelligence, hypersonics, quantum sensing, semiconductors, and advanced propulsion systems. Many of them, according to the committee, have “clear military applications.”

Republicans said that these partnerships have allowed China to exploit U.S. taxpayer-funded research to modernize its own military forces.

“American taxpayer dollars should be used to defend the nation—not strengthen its foremost strategic competitor,” the report stated.

“Failing to safeguard American research from hostile foreign exploitation will continue to erode U.S. technological dominance and place our national defense capabilities at risk.”

Case Studies Highlight Risks

In one case cited by the report, a nuclear scientist at the Carnegie Institution for Science in Washington conducted Pentagon-backed research while simultaneously holding appointments at the Chinese Academy of Sciences and the Hefei Institute of Physical Sciences.

His work on high-energy materials, nitrogen, and high-pressure physics—all relevant to developing nuclear weapons—was recognized by the Chinese regime as contributing to national development goals. The report called it “a deeply troubling example” of how U.S.-funded science can be used to advance Chinese weapons programs.

In another case, Arizona State University and the University of Texas collaborated with researchers from Shanghai Jiao Tong University and Beihang University on Pentagon- and NASA-backed studies of high-stakes decision-making in uncertain environments. The research, the report noted, has potential applications for electronic warfare and cyber defense.

Shanghai Jiao Tong is co-administered by a central Chinese agency tasked with implementing the military-civilian fusion strategy, while Beihang is one of China’s “Seven Sons of National Defense,” a group of universities with deep ties to the military. Beihang has been on the U.S. Commerce Department’s Entity List since 2001 for its involvement in the development of military rocket systems and drones.

Weaponized Open Science

According to the report, some Pentagon officials have said research collaboration should remain open as long as it is pure science and “neither controlled nor classified.”

The committee rejected this stance, warning that such openness would only invite more exploitation from Beijing, especially in defense-relevant fields with clear military applications.

“Balancing academic freedom and open science with national security interests is important,” the Republicans wrote.

“However, unlike in democratic societies—where the norms of scientific openness are grounded in reciprocal trust, transparency, and research integrity—[Chinese] institutions operate under a state-directed research model that is deeply politicized and subordinate to national strategic objectives, including military and economic priorities,” the report stated.

The committee made more than a dozen recommendations to the Department of War (the new official name for the Department of Defense).

It urged restrictions on U.S.-China research partnerships and stronger oversight, and criticized policies that permit collaboration with foreign institutions appearing on U.S. government entity lists simply because federal law does not explicitly make such partnerships illegal.

“Legality does not equal strategic prudence,” the lawmakers said.

Friday’s report also endorses a proposed legislation by committee chairman Rep. John Moolenaar (R-Mich.), which would bar Pentagon funding for projects involving researchers affiliated with Chinese entities flagged by the U.S. government as security risks. The bill would also place greater transparency obligations on federal researchers to disclose ties to adversary countries.

The new report builds on the committee’s findings from last year, which concluded that U.S.-China academic partnerships had allowed hundreds of millions of federal dollars to flow into Beijing’s development of critical technologies over the past decade. In response to that earlier report, several U.S. universities have since terminated joint programs with Chinese institutions.

The DOD did not respond to a request for comment by publication time.

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