This article was published by The McAlvany Intelligence Advisor on Friday, September 15, 2017:
The Australian physician, Dr. Fred Schwarz, filled the Los Angeles Sports Arena from August 28 through September 1, 1961 – capacity 16,000 – to hear him and other speakers expose the communist conspiracy. He educated millions, and his book You Can Trust the Communists (to be Communists) sold well over a million copies. As Morrie Ryskind, a journalist for the Los Angeles Times, wrote at the time: “I can honestly say that in my 25 years in Los Angeles I have never known a local event that so completely captured the enthusiasm for the city.”
Schwarz founded and was active in his Christian Anti-Communist Crusade into his late 80s, passing away at age 96 in 2009.
Schwarz would have recognized the ploys the Chinese communists are using to extract high-technology from the United States by any means whatsoever. In their effort to overtake American technology, China is following a 10-year plan to spend $150 billion to buy up as many high-tech companies as possible in order to obtain their intellectual property (IP) without having to develop it on their own.
On the surface, the numbers are huge. Last year, China, through its various proxies, spent $46 billion buying up American companies with technology it needs. So far this year they have completed 83 deals, totaling $25 billion. But that’s just chump change. The real number, including legal and illegal, above-ground and underground, is closer to $600 billion a year according to the Commission on the Theft of American Intellectual Property.
The communist regime has between 50,000 and 100,000 computer hackers working 12-hour days attacking American companies that have technology and other valuable information that it can use against the U.S. It also uses blackmail, requiring American high-tech firms wanting to do business in China to give the communist government access to their trade secrets, including their IP. As the American Chamber of Commerce in China noted in a report published in April: “Chinese government authorities jeopardize the value of [U.S.] trade secrets by demanding unnecessary disclosure of confidential information for product approvals.”
Treasury Secretary Steven Mnuchin announced on Wednesday that the proposed purchase of Lattice Semiconductor – the world’s second largest manufacturer of simple and complex programmable logic devices – by China-backed Canyon Bridge Capital Partners was blocked by President Trump:
Today, consistent with the administration’s commitment to take all actions necessary to ensure the protection of U.S. national security, the president issued an order prohibiting the acquisition.
Mnuchin said Trump stopped the deal from happening due to “the potential transfer of intellectual property [IP] to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States Government, and the use of Lattice products by the United States Government.”
So important was this deal to Canyon Bridge that it, along with its target, Lattice, made three separate attempts to persuade President Trump to change his mind, but failed each time. Trump decided that the few jobs the acquisition might create – estimated to be around 300 – wasn’t worth the risk of letting China have access to more of U.S. intellectual property.
Trump had been alerted to the IP risks of the deal, inked last November, thanks to a letter sent by 22 members of the House of Representatives to the Committee on Foreign Investment in the U.S. (CFIUS) in December. The group warned not only that the deal could provide China with more critical U.S. technology, but that Canyon Bridge tried to hide the fact that it was being backed by the Chinese Communist government.
Not only has President Trump stopped the Lattice deal, there is every indication that he will also cancel the proposed purchase of MoneyGram – the world’s largest provider of money transfers – by Jack Ma, the co-founder of Alibaba. One can sense the mouthwatering deal that would make for the communists ruling China: imagine having all the financial data of all the people tucked away inside MoneyGram’s computers. And all available without having to hack their way in!
Some U.S. companies are considering their IP as a bargaining chip, and are willing to give it away in exchange for access to the enormous Chinese market. In the past year, Apple announced plans to open research and development facilities in four Chinese cities, each one with the understanding that the communist regime will have access to its technology for its own purposes. Amazon and Microsoft already have centers in China that partner with companies connected to the communist regime. They’re no doubt just considering the giveaway as part of the cost of doing business there.
There’s some private information on which one cannot place a price tag. Consider the Chinese breach of Office of Personnel Management (OPM) computers in June 2015. The 21.5 million records they stole included names, dates of birth, Social Security numbers and addresses, and included the detailed security clearance-related background information on each individual as well. On August 27, in an item that somehow failed to make headlines in the mainstream media, the FBI arrested a Chinese national suspected of helping to create the malware that was used in the successful breach.
Fred Schwarz was right: one can still trust the communists to be communists.
Fred Schwarz’ book, “You Can Trust the Communists (to be Communists)”
The Wall Street Journal: Trump Blocks China-Backed Fund from Buying Lattice Semiconductor
Background on Lattice Semiconductor
Background on MoneyGram International
History of China’s data breach of US Office of Personnel Management in 2015
History of cyberwarfare conducted against US by China
CNN.com: Trump stops China-backed takeover of U.S. chip maker
CNN.com: How China squeezes tech secrets from U.S. companies