Parliamentary Report Warns of China’s Tech Theft to Upgrade Military, Asks for Government to Protect Academia

MPs are calling for government countermeasures against China’s efforts to target Canadian innovation and interfere in the country’s universities in an attempt to gain an edge for its own military and technological development.

The May 2 report from the House of Commons Standing Committee on Science and Research compiles expert testimonies from nine committee meetings held between June and November 2023. The experts focused on threats from the People’s Republic of China (PRC), including the mixed use of technologies for military and civilian purposes and intellectual property theft.
“Tax dollars, public research funding and public universities have for years been leveraged systematically to support and enable research and to use technology that benefits hostile authoritarian states that seem to undermine Canada’s democratic institutions, electoral processes, economic prosperity, national security and fundamental values, as well as international multilateral institutions and so forth,” Christian Leuprecht, professor at the Royal Military College of Canada, stated during his testimony before the committee on June 20, 2023.
Ivana Karaskova, the China projects lead for the Association for International Affairs (AMO), told the committee on Oct. 4, 2023, that “as China strategically uses foreign technologies to boost its own technological base and enable domestic innovation, it increases the competitiveness of its industry and research sectors vis-à-vis foreign counterparts.”

China’s “ultimate goal” is to “substitute foreign technology with indigenous development and to achieve dominance in key sectors across the board.”

She added that “Chinese technology acquisition abroad is tied to the modernization of its military, as many of the technologies are of a dual-use nature.”

China’s Strategies

In the pursuit of its objectives, China employs a “holistic approach” to technology development, blurring lines between public and private sectors, civilian and military domains, the report said.

Beijing’s “military and civil fusion,” as outlined in the Chinese Communist Party’s 13th five-year plan was cited as an example in a written submission to the parliamentary committee from Anna Puglisi, a senior fellow at the Georgetown University’s Center for Security and Emerging Technology in the United States.

The plan specifically calls for a “cross-pollination of military and civilian technology in areas not traditionally seen as ‘national security issues,’ such as quantum telecommunication and computing, neuroscience and brain-inspired research,” and states that such projects will be supported by foreign outreach initiatives,” she wrote.

China’s approach also involves mobilizing all possible stakeholders, the report notes. It quotes David Vigneault, the director of CSIS, as saying that “all parts of that government are involved in seeking information, either openly or surreptitiously, in order to serve the interests of the Chinese Communist Party.”

Several laws adopted in recent years require Chinese citizens to “respond to the PRC’s government or security services if they are asked for information or data,” Mr. Vigneault said.

The report also notes that expert witnesses mentioned that China uses concealment strategies to hide some of its activities. For example, some partners hide their affiliation “in order to be able to donate money and contribute to research projects that can lead to threats to Canada’s security.”

In her submission to the committee, Ms. Puglisi said that “Beijing has made talent development and the exploitation of overseas students, universities, and government labs a central part of its technology acquisition strategy since the country’s ‘opening’ around 1978.”

Recommendations

The parliamentary report offers a series of recommendations to address the threat posed by China’s technology acquisition efforts and interference in Canadian universities. These include ensuring sufficient research funding for post-secondary institutions to reduce reliance on potentially compromising foreign investment.

The government should also actively assist postsecondary institutions to adopt measures aimed at protecting researchers and students from foreign interference on campuses, the report stated. Additionally, these institutions are encouraged to improve transparency in their partnerships with foreign entities, such as through broadening the Government of Canada–Universities Working Group membership to include private research stakeholders.

The report also recommends the government adopt enforcement measures to ensure Canadian institutions’ compliance with  the National Security Guidelines for Research Partnerships along with the policy on sensitive technology research partnership. Additional the report urges the to review funding granted for research to ensure security compliance for smaller institutions.

The report called for including foreign state-owned or state-controlled enterprises to the list of Named Research Organizations that the government created this year. The list includes a number of foreign universities and research institutions that are linked to China’s military institutions, and Canadian universities are barred federal funding to collaborate with these entities.

A broader inclusion of stakeholders in governmental working groups and regular reporting on policy implementation and awareness-raising efforts are also recommended in the report.

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