Internal Pentagon Report Says China Is Main Beneficiary of Key US Technology Research Efforts

A confidential internal Department of Defense report concludes that “China, not the United States, is the ultimate beneficiary of DoD and other [U. S. Government] research investments,” according to Sen. Joni Ernst (R-Iowa).

“Washington is spending billions of your tax dollars every year to hypothetically achieve technological dominance over communist China, but the ultimate beneficiary of that effort may be … China,” Ernst said in a Sept. 28 statement made available to The Epoch Times.

“That is the shocking conclusion of a Department of Defense (DoD) review that found China was stealing technology developed in the United States by exploiting the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs,” Ernst said.

The Iowa Republican described the process by which research efforts intended to help strengthen U.S. national security actually ends up benefitting the Chinese Communist Party that controls the government in Beijing.

“This is how it works: American companies receiving taxpayer assistance for technology development from DoD and other agencies are recruited by China to continue their work at institutions associated with [the] People’s Liberation Army,” Ernst said.

“The U.S. company is then dissolved and the research and intellectual property paid for U.S. tax dollars is transferred to a subsidiary in China. Just like that, American-made ingenuity is shipped overseas to our leading global adversary … and we, the American taxpayers, are funding it,” she continued.

Key to the process is the ability of Chinese intelligence agents to recruit assets within the companies doing the research funded by U.S. tax dollars, according to Ernst, who cited an example included in the report that has not been made public.

“A researcher and the co-founders of a now-dissolved company that received four grants to develop technology for spacecraft and drones, for example, were allegedly recruited by the Chinese government and now work

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