For decades, the US intelligence community and private sector businesses have been getting outsmarted by Chinese espionage tactics. Paul D Moore, a former China analyst for the FBI, has developed an approach known as ‘thousand grains of sand’ to explain how this happens.
What is Thousand Grains of Sand?
Moore’s approach of ‘thousand grains of sand’ is a metaphor for how the Chinese use small actions to accumulate information that can be used against US businesses. Moore notes that while the Russians and Americans have their own ways of gathering intelligence, China has developed a unique strategy. They send thousands of tourists to collect even the smallest details, which collectively can give them a massive advantage.
This method is particularly effective in the business sector, where the Chinese are able to piece together information about US companies that would be difficult to obtain with more traditional methods of intelligence gathering. For example, tourists visiting a US company’s headquarters may take photographs and videos, ask casual questions about the layout and operations, and even collect seemingly insignificant items like paperclips and business cards. All of this information is then fed back to the Chinese government, which can use it to gain a competitive edge in negotiations.
According to Moore, the Chinese are able to successfully steal US technology and intellectual property (IP) due to their use of a wide range of tactics. Instead of relying on big, bold moves like hacking into systems or recruiting spies, they’ll use smaller, more subtle methods such as infiltrating business networks with malware or exploiting weaknesses in corporate security systems.
These tactics are usually done in a way that’s hard to detect or attribute back to China, making it difficult for US businesses and the government to track down who is responsible. The Chinese also have an advantage because they can use their vast economic and political power to pressure US companies into sharing information with them, something that could be done through contracts or by withholding business opportunities.
In addition, the Chinese often target small and midsize companies, which don’t have the same level of resources that larger corporations do when it comes to defending their IP. This means they can quickly acquire valuable technology without being noticed.
How does China Use This Information?
The Chinese are adept at using the information they’ve collected to their own advantage. For instance, they can use the information to gain an understanding of corporate structures and products. This allows them to target US businesses and industries with great precision.
In addition, Chinese intelligence agencies are known to have infiltrated American companies by planting employees in key positions or even purchasing minority interests in businesses. These agents can influence company decisions, steal trade secrets, and sabotage operations.
The Chinese government can also use the information they’ve collected to create new businesses that are in direct competition with US companies. They can also use the same information to gain an advantage in negotiations with US companies or even force them out of certain markets.
How Does This Affect Your Business?
The ‘thousand grains of sand’ approach also involves the Chinese government taking advantage of US technology and intellectual property by investing heavily in start-ups or buying up existing companies that possess valuable IP. Once they have control over the IP, they can then use it to their own benefit.
The recent case involving Huawei is a clear example of this tactic. The Chinese telecommunications giant was able to acquire US technology and IP by buying up businesses that had patents, including Motorola.
What’s more, the Chinese government often works with private companies to facilitate espionage operations. They have even been known to provide these companies with funding and access to resources in order to carry out their operations.
To make matters worse, the Chinese government also has a strong presence in the US, where they have established numerous Confucius Institutes. These institutes are often used as fronts for espionage activities, such as collecting intelligence and recruiting spies.
It’s clear that China is succeeding in its efforts to steal US technology and IP, leaving US businesses and the government vulnerable. Fortunately, there are steps that can be taken to protect against these tactics, such as strengthening security systems, better training employees, and establishing protocols for handling sensitive information.
For example, let’s say you run a small business and have valuable technology or IP. The first step would be to invest in a strong security system, such as firewalls, malware protection, and encryption. You should also create protocols for how information is shared within the company and with outside sources. Additionally, it’s important to train employees on basic cyber-security measures, so they know how to spot potential threats. This can include, for example, teaching them how to recognize phishing emails or identify malicious links.
Keeping social media use to a minimum is also highly recommended. The Chinese government has strong links to both Tiktok and Quora, two popular social media sites, and these platforms are commonly used to gather intelligence.
Finally, it’s essential to keep a close eye on any investments or business relationships you form with Chinese companies. Ensure that all contracts are thoroughly reviewed and checked for language that could potentially give away your IP. It’s also important to be aware of any requests for information and to be wary of disclosing too much.