IT Compliance and Controls

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Global Impact of Corporate Espionage – a focus on China and U.S. Companies

December 11th, 2007 · No Comments

An eye opening report was put forth by the U.S. government (USCC) that focused on the political impact of China on the United States.  The report covered currency, pollution, censorship, information technology, competition, supply-chain concerns, and recommended actions.  The report is an important read to every business executive as a whole given the economic importance China, and other emerging nations such as India.  Beyond the social and political threats that are highlighted in this report detail surrounding the competitive threats the U.S. government faces from espionage from Chinese sponsored agencies.  These espionage efforts are not focused solely on government facilities, but are methodically and concertedly attacking corporations around the world.
The report (Link to Executive Summary) highlights that “…industrial espionage provides Chinese companies an added source of new technology without the necessity of investing time or money to perform research.  Chinese espionage in the United States, which now comprises the single greatest threat to U.S. technology, is straining the U.S. counterintelligence establishment”

The safeguard and longevity of an organization is directly affected by its ability to operate.  No organization can compete against another organization that does not incur the expenses to develop a product (because they stole it from the first organization).  Awareness of an organization’s information assets, their own intellectual property, and the establishment of sufficient safeguards is a core requirement of every business.  This report highlights that beyond simply creating a look-alike of product, but instead there is a threat of a competitor building an identical copy.  This becomes more of an issue as organizations leverage outsourcing, because in this case the IP of the organization is now in foreign nations that do not have the same legal and political protections.

It is important to note that despite the fact that this report and article focus specifically on two nations – the applicability is global across different nations and companies operating worldwide.  As competition escalates beyond companies to include nations and groups of nations, safeguarding IP of an organization rightfully requires diligence and care.

Best,

James DeLuccia

Tags: Monitoring and Performance Reviews · Risk Awareness · Technology Intelligence · Trusted Communications and Network · Trusted Computing Platform Systems

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