China’s aggressive campaigns of cyber theft targeting American data, including trade secrets, manufacturing knowledge, and sensitive research, are now expected to gain significant traction in the age of Artificial Intelligence (AI). This acquisition could present serious implications for the United States’ economic and security interests.
Despite the decades-long theft, only a small fraction of the stolen assets have surfaced on the black market, and China has not overtly utilized the majority of the acquired data due to limitations in expertise and capacity. However, the emergence of AI is set to transform this landscape. With AI, China could use its vast stockpiles of proprietary data to effectively train models, enabling them to identify patterns, explore new opportunities, and even generate innovative products across various domains, from industry to defense.
The availability of strong “training data” will make AI-driven insights more robust and actionable, dramatically amplifying the value of the hacked corporate data for strategic competitors. This capability, particularly in the hands of China, is concerning, as they reportedly outpace the global community in 37 of 44 technology areas.
The United States has expressed grave concerns over China’s potential application of AI to strengthen its espionage capabilities. This apprehension follows the case of Xiaolang Zhang, a former Apple employee who was caught attempting to travel to Beijing from San Jose with stolen trade secrets from Apple’s autonomous driving program. This incident exemplifies broader fears of China’s aggressive acquisition of AI technology for espionage purposes.
U.S. intelligence agencies have underscored the risk of China harnessing AI to accumulate American personal data on an unprecedented scale, extending beyond commercial and military uses to involve intelligence and surveillance activities. Consequently, there is a perceptible threat to the security of intellectual property and personal data.
The case of Xiaolang Zhang has served as a concrete example of China’s espionage activities and the potential risks they pose. These concerns highlight the need for heightened vigilance and robust security measures to counter China’s accelerating technological advances in espionage and data acquisition.
