WE ABSOLUTELY DO NOT CONDONE ANY TESTING THAT INVOLVES THAT DEGREE OF USE OF POPULATIONS THAT ARE ALREADY VULNERABLE TO DISEASE AND VULNERABLE TO OTHER CONDITIONS. ...

WE WILL TAKE YOU TO LIVE COVERAGE HERE ON SPEECH -- ON C-SPAN.

THANK YOU FOR JOINING US AT THE HUDSON INSTITUTE. WE ARE HERE WITH FBI DIRECTOR CHRISTOPHER WRAY. IT IS MY PLEASURE TO BE BACK AT THE OFFICE AND AN HONOR TO JOIN THE DIRECTOR IN TODAY'S CONVERSATION. CHRISTOPHER WRAY CURRENTLY SERVES AS DIRECTOR OF THE FBI. HE HAS SERVED IN A NUMBER OF ROLES WITHIN THE FEDERAL GOVERNMENT INCLUDING ATTORNEY GENERAL AT THE OFFICE OF THE DEPUTY ATTORNEY GENERAL WHERE HE OVERSAW INVESTIGATIONS CONDUCTED BY THE DOJ'S LAW ENFORCEMENT AGENCIES. IN 2003, PRESIDENT GEORGE W. BUSH NOMINATED MR. WRAY AS THE ASSISTANT ATTORNEY GENERAL FOR DOJ'S CRIMINAL DIVISION, WHERE HE OVERSAW MAJOR INVESTIGATIONS IN THE DOMESTIC AND INTERNATIONAL CRIMINAL ACTIVITIES. HE ALSO OVERSAW THE DOJ'S COUNTERTERRORISM COUNTER INTELLIGENCE AND EXPORT CONTROL SECTIONS. MR. WRAY WAS INSTRUMENTAL IN THE DOJ'S EFFORTS TO COMBAT TERRORISM, CYBER CRIME, AND ESPIONAGE. TODAY, HE JOINS US TO DISCUSS CHINA'S ONGOING EFFORTS TO INTERFERE IN THE UNITED STATES DOMESTIC AFFAIRS THROUGH ESPIONAGE, DISINFORMATION CAMPAIGNS, INTELLECTUAL PROPERTY THEFT, AND MONETARY THEFT. IT IS MY PLEASURE TO WELCOME DIRECTOR WRAY TO THE HUDSON INSTITUTE. [APPLAUSE] ...

THANK YOU. GOOD MORNING, EVERYBODY. I REALIZE IT IS CHALLENGING UNDER THE CURRENT CIRCUMSTANCES TO PUT ON AN EVENT LIKE THIS. I AM GRATEFUL TO THE HUDSON INSTITUTE FOR HOSTING US TODAY. THE GREATEST LONG-TERM THREAT TO OUR NATION'S INFORMATION AND INTELLECTUAL PROPERTY AND TO OUR ECONOMIC VITALITY IS A COUNTERINTELLIGENCE AND ECONOMIC ESPIONAGE THREAT FROM CHINA. IT IS A THREAT TO OUR ECONOMIC SECURITY AND, BY EXTENSION, TO OUR NATIONAL SECURITY. AS NATIONAL SECURITY ADVISOR O'BRIEN SAID IN HIS RECENT REMARKS, WE CANNOT CLOSE OUR EYES AND EARS TO WHAT CHINA IS DOING. TODAY, IN LIGHT OF THE IMPORTANCE OF THIS THREAT, I WILL PROVIDE MORE DETAIL ON THE CHINESE THREAT THAN THE FBI HAS EVER PRESENTED IN AN OPEN FORUM. THIS THREAT IS SO SIGNIFICANT THAT THE ATTORNEY GENERAL AND SECRETARY OF STATE WILL ALSO BE ADDRESSING A LOT OF THESE ISSUES IN THE NEXT FEW WEEKS. BUT IF YOU THINK THESE ISSUES ARE JUST AN INTELLIGENCE ISSUE, OR A GOVERNMENT PROBLEM, OR A NUISANCE LARGELY FOR BIG CORPORATIONS WHO CAN LARGELY TAKE CARE OF THEMSELVES, YOU COULD NOT BE MORE WRONG. IT IS THE PEOPLE OF THE UNITED STATES WHO ARE THE VICTIMS OF WHAT AMOUNTS TO CHINESE THEFT ON A SCALE SO MASSIVE THAT IT REPRESENTS ONE OF THE LARGEST TRANSFERS OF WEALTH IN HUMAN HISTORY. IF YOU ARE AN AMERICAN ADULT, IT IS MORE LIKELY THAN NOT THAT CHINA HAS STOLEN YOUR PERSONAL DATA. IN 2017, THE CHINESE MILITARY CONSPIRED TO HACK EQUIFAX AND MADE OFF WITH SENSITIVE PERSONAL INFORMATION OF 150 MILLION AMERICANS, WE ARE TALKING NEARLY HALF OF THE AMERICAN POPULATION, AND MOST AMERICAN ADULTS. AS I WILL DISCUSS IN A FEW MOMENTS, THIS WAS HARDLY A STANDALONE INCIDENT. OUR DATA IS NOT THE ONLY THING AT STAKE HERE. SO IS OUR HEALTH, OUR LIVELIHOODS, AND OUR SECURITY. WE HAVE NOW REACHED THE POINT WHERE THE FBI IS OPENING A NEW CHINA-RELATED COUNTERINTELLIGENCE CASE ABOUT EVERY 10 HOURS. OF THE NEARLY 5000 ACTIVE FBI COUNTERINTELLIGENCE CASES CURRENTLY UNDERWAY ACROSS THE COUNTRY, ALMOST HALF ARE ALL RELATED TO CHINA. AT THIS VERY MOMENT, CHINA IS WORKING TO COMPROMISE AMERICAN HEALTH CARE ORGANIZATIONS, PHARMACEUTICAL COMPANIES, AND ACADEMIC INSTITUTIONS, CONDUCTING A CENTRAL COVID-19 RESEARCH. BEFORE I GO ON, LET ME BE CLEAR. THIS IS NOT ABOUT THE CHINESE PEOPLE AND CERTAINLY A NOT -- CERTAINLY NOT ABOUT CHINESE AMERICANS. EVERY YEAR, THE UNITED STATES WELCOMES MORE THAN 100,000 CHINESE STUDENTS AND TEACHERS INTO THIS COUNTRY. PEOPLE WHO HAVE JOURNEY TO CHINA FROM THE UNITED STATES SECURED BLESSINGS OF LIBERTY FOR THEMSELVES AND THEIR FAMILIES AND OUR SOCIETY IS BETTER FOR THEIR CONTRIBUTIONS. WHEN I SPEAK OF A THREAT FROM CHINA, I MEAN THE GOVERNMENT OF CHINA AND THE CHINESE COMMUNIST PARTY. TO UNDERSTAND THIS THREAT AND HOW WE MUST ACT TO RESPOND TO IT, THE AMERICAN PEOPLE SHOULD REMEMBER THREE THINGS. FIRST, WE NEED TO BE CLEAR EYED ABOUT THE SCOPE OF THE CHINESE GOVERNMENT'S AMBITION. CHINA, THE CHINESE COMMUNIST PARTY, LEAVES IT IS IN A GENERATIONAL FIGHT TO SURPASS OUR COUNTRY IN ECONOMIC AND TECHNOLOGICAL LEADERSHIP. THAT IS SOBERING ENOUGH, BUT IT IS WAGING THAT FIGHT NOT THROUGH LEGITIMATE INNOVATION, NOT THROUGH FAIR AND LAWFUL COMPETITION, AND NOT BY GIVING THEIR CITIZENS THE FREEDOM OF THOUGHT AND SPEECH AND CREATIVITY THAT WE TREASURE HERE IN THE UNITED STATES. INSTEAD, CHINA IS ENGAGED IN AN EFFORT TO BECOME THE WORLD'S'S ONLY SUPERPOWER BY ANY MEANS NECESSARY. THE SECOND THING THE AMERICAN PEOPLE NEED TO UNDERSTAND IS THAT CHINA USES A DIVERSE RANGE OF SOPHISTICATED TECHNIQUES. EVERYTHING FROM CYBER INTRUSIONS TO CORRUPTING TRUSTED INSIDERS. THEY EVEN ENGAGE IN OUTRIGHT PHYSICAL THREATS, AND THEY PIONEERED AN EXPANSIVE APPROACH TO STEALING INFORMATION THROUGH A WIDE RANGE OF ACTORS. INCLUDING NOT JUST CHINESE INTELLIGENCE SERVICES, STATE OWNED ENTERPRISES, PRIVATE COMPANIES, CERTAIN KINDS OF GRADUATE STUDENTS AND RESEARCHERS, AND A WHOLE VARIETY OF OTHER ACTORS WORKING ON THEIR BEHALF. TO ACHIEVE ITS GOALS AND SURPASS AMERICA, CHINA RECOGNIZES IT NEEDS TO MAKE LEAPS IN CUTTING EDGE TECHNOLOGIES. BUT THE SAD FACT IS INSTEAD OF ENGAGING IN THE HARD SLOG OF INNOVATION, CHINA OFTEN STEALS AND USES IT TO COMPETE WITH THE AMERICAN COMPANIES IT HAS VICTIMIZED. THEY ARE TARGETING RESEARCH ON EVERYTHING FROM MILITARY EQUIPMENT, WIND TURBINES, RICE AND CORN SEEDS, THROUGH ITS TALENT RECRUITMENT PROGRAMS LIKE THE SO-CALLED THOUSAND TALENTS PROGRAM, THE CHINESE TRY TO ENTICE SCIENTISTS TO BRING OUR KNOWLEDGE AND INNOVATION BACK TO CHINA, EVEN IF THAT MEANS STEALING PROPRIETARY INFORMATION OR VIOLATING OUR EXPORT CONTROLS AND CONFLICT OF INTEREST RULES. TAKE THE CASE OF A SCIENTIST, A CHINESE NATIONAL AND AMERICAN, A LAWFUL PERMANENT RESIDENT. HE APPLIED TO THE CHINA THOUSAND TALENTS PROGRAM AND STOLE MORE THAN $1 BILLION WORTH OF TRADE SECRETS FROM HIS FORMER EMPLOYER. IN OKLAHOMA BASED COMPANY. HE GOT CAUGHT. A FEW MONTHS AGO, HE WAS CONVICTED AND SENT TO PRISON. THERE IS THE CASE OF A TEXAS-BASED SCIENTIST, ALSO SENT TO PRISON EARLIER THIS YEAR. SHE TOLD SECRETS REGARDING A PHONE, AN IMPORTANT PIECE OF KNOWLEDGE IN SUBMARINES. SHE ALSO APPLIED TO THE THOUSAND TALENTS PROGRAM, TO ABSORB THE RELEVANT TECHNOLOGY IN THE UNITED STATES. HE DID THIS ON BEHALF OF CHINESE STATE OWNED ENTERPRISES, WHICH ULTIMATELY PLANNED TO PUT THE AMERICAN COMPANY OUT OF BUSINESS AND TAKE OVER THE MARKET. IN ONE OF THE MORE GALLING AND EGREGIOUS ASPECTS OF THE SCHEME, CONSPIRATORS ACTUALLY PATENTED IN CHINA THE VERY MANUFACTURING PROCESS THEY HAD STOLEN AND THEN OFFERED THEIR VICTIM AMERICAN COMPANY A JOINT VENTURE USING ITS OWN STOLEN TECHNOLOGY. WE ARE TALKING ABOUT AN AMERICAN COMPANY THAT SPENT YEARS AND MILLIONS OF DOLLARS DEVELOPING THAT TECHNOLOGY, AND CHINA COULD NOT REPLICATE IT, SO INSTEAD, IT PAID TO HAVE IT STOLEN. JUST TWO WEEKS AGO, ANOTHER WAS CONVICTED OF ESPIONAGE, TRADE SECRETS, IN CONSPIRACY FOR TRADING PROPRIETARY INFORMATION ABOUT DEVICES TWO U.S. COMPANIES. ONE OF THOSE COMPANIES HAS SPENT OVER 20 YEARS DEVELOPING THE TECHNOLOGY HE STOLE. THESE CASES WERE AMONG MORE THAN 1000 INVESTIGATIONS THE FBI HAS INTO CHINA'S ACTUAL AND ATTEMPTED THEFT OF AMERICAN TECHNOLOGY, AND THAT IS NOT EVEN TALKING ABOUT THE MORE THAN 1000 OTHER ONGOING COUNTERINTELLIGENCE INVESTIGATIONS OF OTHER KINDS RELATED TO CHINA. WE ARE CONDUCTING THESE KINDS OF INVESTIGATIONS IN ALL 56 OF OUR FIELD OFFICES. OVER THE PAST DECADE, WE HAVE SEEN ECONOMIC ESPIONAGE CASES WITH A LINK TO CHINA INCREASED BY APPROXIMATELY 1300%. THE STAKES COULD NOT BE HIGHER, AND THE POTENTIAL ECONOMIC HARM TO AMERICAN BUSINESSES AND THE ECONOMY AS A WHOLE ALMOST DEFIES CALCULATION. AS NATIONAL SECURITY ADVISOR O'BRIEN DISCUSSED IN HIS REMARKS, THE CHINESE GOVERNMENT IS ALSO MAKING LIBERAL USE OF HACKING TO STEAL OUR CORPORATE AND PERSONAL DATA, AND THEY ARE USING BOTH MILITARY AND NONSTATE HACKERS TO DO IT. THE EQUIFAX INTRUSION I MENTIONED JUST A FEW MOMENTS AGO, WHICH LED TO THE INDICTMENT OF CHINESE MILITARY PERSONNEL, WAS HARDLY THE ONLY TIME CHINA STOLE THE SENSITIVE PERSONAL INFORMATION FOR FUTURE NUMBERS OF THE AMERICAN PUBLIC. FOR EXAMPLE, DID ANY OF YOU HAVE HEALTH INSURANCE THROUGH ANTHEM OR ONE OF ITS ASSOCIATED INSURERS? IN 2015, CHINA'S HACKERS STOLE THE PERSONAL DATA OF 80 MILLION OF THAT COMPANY'S CURRENT AND FORMER CUSTOMERS. OR MAYBE YOU ARE A FEDERAL EMPLOYEE OR USED TO BE ONE, OR YOU APPLIED FOR A GOVERNMENT JOB ONCE, OR A FAMILY MEMBER OR ROOMMATE DID. IN 2014, CHINA'S HACKERS STOLE MORE THAN 21 MILLION RECORDS FROM THE FEDERAL GOVERNMENT OFFICE OF PERSONNEL MANAGEMENT. WHY? FIRST, CHINA HAS MADE BECOMING AN ARTIFICIAL INTELLIGENCE WORLD LEADER A PRIORITY, AND THESE KINDS OF THEFTS FEED RIGHT INTO CHINA'S DEVELOPMENT OF ARTIFICIAL INTELLIGENCE TOOLS. BUT COMPOUNDING THE THREAT, THE DATA CHINA STOLE IS OF OBVIOUS VALUE AS THEY ATTEMPT TO IDENTIFY PEOPLE FOR SECRET INTELLIGENCE GATHERING. ON THAT FRONT, CHINA IS USING SOCIAL MEDIA PLATFORMS, THE SAME ONES AMERICANS USE EVERY DAY TO STAY CONNECTED OR FIND JOBS, TO IDENTIFY PEOPLE WITH ACCESS TO SENSITIVE INFORMATION AND THEN TARGET THOSE PEOPLE. -- THOSE PEOPLE TO TRY TO STEAL IT. ONE EXAMPLE. A CHINESE INTELLIGENCE OFFICER POSING AS A HEADHUNTER ON A POPULAR SOCIAL MEDIA PLATFORM RECENTLY OFFERED AN AMERICAN CITIZEN A SIZABLE SUM OF MONEY IN EXCHANGE FOR SO-CALLED CONSULTING SERVICES. SOUNDS BENIGN ENOUGH UNTIL YOU REALIZE THOSE CONSULTING SERVICES WERE RELATED TO SENSITIVE INFORMATION THE AMERICAN TARGET HAD ACCESS TO AS A U.S. MILITARY INTELLIGENCE SPECIALIST. THAT PARTICULAR TALE HAS A HAPPY ENDING. THE AMERICAN CITIZEN TO THE RIGHT THING, REPORTED THE SUSPICIOUS CONTACT, AND THE FBI, WORKING TOGETHER WITH OUR ARMED FORCES, TOOK IT FROM THERE. I WISH I COULD SAY ALL SUCH INCIDENTS AND THAT WAY -- END THAT WAY. THROUGH TALENT RECRUITMENT PROGRAMS LIKE THE 1000 TALENTS PROGRAM I MENTIONED MOMENTS AGO, CHINA PAYS SCIENTISTS AT AMERICAN UNIVERSITIES TO SECRETLY BRING OUR KNOWLEDGE AND INNOVATION BACK TO CHINA, INCLUDING VALUABLE FEDERALLY FUNDED RESEARCH. TO PUT IT BLUNTLY, THIS MEANS AMERICAN TAXPAYERS ARE EFFECTIVELY FOOTING THE BILL FOR CHINA'S TECHNOLOGICAL DEVELOPMENT. CHINA THAN LEVERAGES ITS ILL-GOTTEN GAINS TO UNDERCUT U.S. RESEARCH INSTITUTIONS AND COMPANIES WANTING OUR NATION'S ADVANCEMENT AND COSTING AMERICAN JOBS. WE ARE SEEING MORE AND MORE OF THESE CASES. IN MAY ALONE, WE ARRESTED A FORMER RESEARCHER WITH THE CLEVELAND CLINIC WHO WORKED ON MALEC WILL OR MEDICINE, AND THE GENETICS OF CARDIOVASCULAR DISEASE, AND A UNIVERSITY OF ARKANSAS SCIENTIST DOING RESEARCH FOR NASA. BOTH OF THESE GUYS WERE COMMITTING FRAUD WHILE ACCEPTING MILLIONS OF DOLLARS IN AMERICAN FEDERAL GRANT FUNDING. THAT SAME MONTH, A FORMER EMERY UNIVERSITY PROFESSOR PLED GUILTY TO FILING A FALSE TAX RETURN FOR FAILING TO REPORT THE INCOME HE RECEIVED THROUGH CHINA'S THOUSAND TALENTS PLAN. WHILE THE WAS -- WHILE HE WAS RESEARCHING, HE WAS POCKETING A HALF A MILLION DOLLARS. CHAIR OF HARVARD'S DEPARTMENT OF BIOLOGY, WAS INDICTED LAST MONTH FOR MAKING FALSE STATEMENTS TO FEDERAL AUTHORITIES ABOUT HIS THOUSAND TALENTS PARTICIPATE IN. UNITED STATES ALLEGED HE STOLE FROM HARVARD AND NIH, -- AND THE FACT -- THROUGH THE WUHAN INSTITUTE OF TECHNOLOGY, A $50,000 MONTHLY STIPEND, MORE THAN $150,000 IN LIVING EXPENSES, AND MORE THAN $1.5 MILLION TO ESTABLISH A LABORATORY BACK IN CHINA. THERE IS MORE. ANOTHER TOOL CHINA AND THE CHINESE COMMUNIST PARTY USED TO MANIPULATE AMERICANS IS WHAT WE CALL MALIGN FOREIGN INFLUENCE. THE TRADITIONAL FOREIGN INFLUENCE IS A NORMAL, LEGAL, DIPLOMATIC ACTIVITY, TYPICALLY CONDUCTED THROUGH DIPLOMATIC CHANNELS. BUT MALIGN FOREIGN INFLUENCE EFFORTS ARE SUBVERSIVE, UNDER DECLARED, CRIMINAL OR COERCIVE ATTEMPTS TO SWAY OUR GOVERNMENT'S POLICIES, DISTORT OUR PUBLIC DISCOURSE, AND UNDERMINE CONFIDENCE IN OUR DEMO -- DEMOCRATIC PROCESSES AND VALUES. CHINA IS ENGAGED IN A HIGHLY SOPHISTICATED, MALIGN FOREIGN INFLUENCE CAMPAIGN, INCLUDING BRIBERY, BLACKMAIL, AND COVERT DEALS. CHINESE DIPLOMATS ALSO USE BOTH OPEN, NAKED ECONOMIC PRESSURE, AND SEEMINGLY INDEPENDENT MIDDLEMEN, TO PUSH CHINA'S PREFERENCES ON AMERICAN OFFICIALS. JUST TAKE ONE ALL TOO COMMON ILLUSTRATION. LET'S SAY CHINA GETS WIND THAT SOME AMERICAN OFFICIAL IS PLANNING TO TRAVEL TO TAIWAN. THINK, A GOVERNOR, STATE SENATOR, OR MEMBER OF CONGRESS. CHINA DOES NOT WANT THAT TO HAPPEN BECAUSE THAT TRAVEL MIGHT APPEAR TO LEGITIMIZE TAIWANESE INDEPENDENCE FROM CHINA AND LEGITIMIZING TAIWAN WOULD OF COURSE BE CONTRARY TO CHINA'S ONE CHINA POLICY. SO WHAT DOES CHINA DO? CHINA HAS LEVERAGE OVER THE AMERICAN OFFICIALS CONSTITUENTS. AMERICAN COMPANIES, ACADEMICS, AND MEMBERS OF THE MEDIA HAVE A LEGITIMATE AND UNDERSTANDABLE REASON TO WANT ACCESS TO CHINESE PARTNERS AND MARKETS. BECAUSE OF THE AUTHORITARIAN NATURE OF CHINESE COMMONEST PARTY, CHINA HAS IMMENSE POWER OVER THOSE SAME PARTNERS AND MARKETS. SO CHINA WILL SOMETIMES START BY ATTEMPTED TO INFLUENCE THE AMERICAN OFFICIAL OVERTLY INDIRECTLY. CHINA MIGHT OLD -- OPENLY WARNED THAT IF AN AMERICAN OFFICIAL GOES IN AND TAKE THE TRIP TO TAIWAN, CHINA WILL TAKE IT OUT ON A COMPANY FROM THAT OFFICIAL'S HOME STATE BY WITHHOLDING THE LICENSE TO MANUFACTURE IN CHINA. THAT COULD BE ECONOMICALLY RUINOUS FOR THE COUNTRY AND WOULD DIRECTLY PRESSURE THE AMERICAN OFFICIAL TO ALTER HIS TRAVEL PLANS AND THE OFFICIAL WOULD KNOW THAT CHINA WAS TRYING TO INFLUENCE HIM. THAT WOULD BE BAD ENOUGH, BUT THE CHINESE COMMUNIST PARTY DOES NOT STOP THERE. IT CANNOT STOP THERE IF IT WANTS TO STAY IN POWER SO IT USES ITS LEVERAGE EVEN MORE PRODIGIOUSLY. IF CHINA IS MORE DIRECT, -- IF CHINA'S MORE DIRECT INFLUENCE DOES NOT DO THE TRICK, IT SOMETIMES GOES TO INDIRECT AND DECEPTIVE EFFORTS. TO CONTINUE WITH THE LUSTRATION OF THE AMERICAN OFFICIAL WITH TRAVEL PLANS THAT THE CHINESE COMMUNIST PARTY DOES NOT LIKE, CHINA WILL WORK RELENTLESSLY TO IDENTIFY THE PEOPLE CLOSEST TO THAT OFFICIAL, THE PEOPLE THAT OFFICIAL TRUSTS THE MOST. CHINA WILL WORK TO INFLUENCE THOSE PEOPLE TO ACT ON CHINA'S BEHALF AS MIDDLEMEN TO INFLUENCE THE OFFICIAL. THE CO-OPTED MIDDLEMEN MAY THEN WHISPER IN THE OFFICIAL'S EAR AND TRY TO SWAY THE TRAVEL PLAN OR PUBLIC POSITION ON CHINESE POLICY. THESE INTERMEDIARIES OF COURSE ARE NOT TELLING THE AMERICAN OFFICIAL, AND SOME OF THESE INTERMEDIARIES MAY NOT REALIZE THEY ARE BEING USED AS PAWNS, BECAUSE THEY, TOO, HAVE BEEN DECEIVED. ULTIMATELY, CHINA DOES NOT HESITATE TO USE SMOKE, MIRRORS, AND MISDIRECTION TO INFLUENCE AMERICANS. SIMILARLY, CHINA OFTEN PUSHES ACADEMICS AND JOURNALISTS TO SELF CENTER -- SELF SENSOR IF THEYWANT-- CENSOR TO TRAVEL. CHINA'S AMBITIONS REGARDING HONG KONG OR TAIWAN. THIS KIND OF THING IS HAPPENING OVER AND OVER ACROSS THE UNITED STATES. I WILL NOTE THAT THE PANDEMIC HAS NOT STOPPED ANY OF THIS. WE HAVE HEARD FROM FEDERAL, STATE, AND LOCAL OFFICIALS, THAT CHINESE DIPLOMATS ARE AGGRESSIVELY URGING SUPPORT FOR CHINA'S HANDLING OF THE COVID-19 CRISIS. YES, THIS IS HAPPENING AT BOTH THE FEDERAL AND STATE LEVELS. NOT THAT LONG AGO, WE HAD A STATE CENTER WHO WAS RECENTLY EVEN ASKED TO REDO -- INTRODUCE A RESOLUTION SUPPORTING CHINA'S RESPONSE TO THE PANDEMIC. THE PUNCHLINE IS, ALL OF THESE SEEMINGLY INCONSEQUENTIAL MEASURES AT UP TO A POLICYMAKING ENVIRONMENT IN WHICH AMERICANS FIND THEMSELVES HELD OVER A BARREL BY THE CHINESE COMMUNIST PARTY. ALL THE WHILE, CHINA'S GOVERNMENT AND COMMUNIST PARTY HAS BRAZENLY VIOLATED NORMS OF THE RULE OF LAW. SINCE 2014, XI JINPING HAS SPEARHEADED A PROGRAM KNOWN AS FOX HUNT. CHINA DESCRIBES FOX HUNT AS AN INTERNATIONAL ANTICORRUPTION CAMPAIGN. IT IS NOT. INSTEAD, IT IS A SWEEPING BID BY GENERAL SECRETARY X TOI HE SEES AS THREATS. WE ARE TALKING ABOUT POLITICAL RIVALS AND CRITICS SEEKING TO EXPOSE CHINA'S EXPENSIVE HUMAN RIGHTS VIOLATIONS. HUNDREDS OF THESE FOX HUNT VICTIMS THAT THEY TARGET LIVE RIGHT HERE IN THE UNITED STATES, AND MANY ARE UNITED -- AMERICAN CITIZENS AND GREEN CARD HOLDER. THE CHINESE GOVERNMENT WANTS TO FORCE THEM TO RETURN TO CHINA, AND CHINA'S TACTICS TO ACCOMPLISH THAT ARE SHOCKING. FOR EXAMPLE, WHEN IT COULD NOT LOCATE ONE FOX HUNT TARGET, THE CHINESE GOVERNMENT SENT AN EMISSARY TO VISIT THE TARGET'S FAMILY HERE IN THE UNITED STATES. THE MESSAGE THEY SAID TO PASS ON --THE TARGET HAD TWO OPTIONS. RETURN PROMPTLY OR COMMIT SUICIDE. WHAT HAPPENS WHEN FOXHOUND TARGETS REFUSED TO RETURN TO CHINA? IN THE PAST, FAMILY MEMBERS HERE IN THE UNITED STATES AND IN CHINA HAVE BEEN THREATENED AND COERCED, AND THOSE BACK IN CHINA ARE EVEN ARRESTED FOR LEVERAGE. I WILL TAKE THIS OPPORTUNITY TO NOTE THAT IF YOU BELIEVE THE CHINESE GOVERNMENT IS TARGETING YOU, THAT YOU ARE A POTENTIAL FOXHOUND VICTIM, PLEASE REACH OUT TO YOUR LOCAL FBI FIELD OFFICE. UNDERSTANDING HOW A NATION COULD ENGAGE IN THESE KINDS OF TACTICS BRINGS ME TO THE THIRD THING THE AMERICAN PEOPLE NEED TO REMEMBER. CHINA HAS A FUNDAMENTALLY DIFFERENT SYSTEM THAN OURS, AND IT IS DOING ALL IT CAN TO EXPLOIT THE OPENNESS OF OURS WHILE TAKING ADVANTAGE OF ITS OWN CLOSED SYSTEM. MANY OF THE DISTINCTIONS THAT MEAN A LOT HERE IN THE UNITED STATES ARE BLURRY OR ALMOST NONEXISTENT IN CHINA. I AM TALKING ABOUT DISTINCTION IS BETWEEN THE GOVERNMENT AND THE CHINESE COMMUNIST PARTY, BETWEEN CIVILIAN AND MILITARY SECTORS, BETWEEN THE STATE AND THE PRIVATE SECTOR. FOR ONE THING, AN AWFUL LOT OF LARGE CHINESE BUSINESSES ARE STATE OWNED ENTERPRISES, LITERALLY OWNED BY THE GOVERNMENT AND THUS THE PARTY. EVEN IF THEY ARE NOT, CHINESE LAWS ALLOW ITS GOVERNMENT TO COMPEL ANY CHINESE COMPANY TO PROVIDE ANY INFORMATION IT REQUESTS, INCLUDING AMERICAN CITIZENS' DATA. ON TOP OF THAT, CHINESE COMPANIES OF ANY SIZE ARE LEGALLY REQUIRED TO HAVE COMMUNIST PARTY CELLS INSIDE OF THEM TO KEEP THEM IN LINE. COMMUNIST PARTY CELLS HAVE REPORTEDLY BEEN ESTABLISHED IN SOME AMERICAN COMPANIES OPERATING IN CHINA AS THE COST OF DOING BUSINESS THERE. THESE KINDS OF FEATURES SHOULD GIVE U.S. COMPANIES PAUSE WHEN THEY CONSIDER WORKING WITH CHINESE CORPORATIONS LIKE HUAWEI , AND THEY SHOULD GIVE ALL AMERICANS PAUSE WHEN RELYING ON SUCH A COMPANY'S DEVICES AND NETWORKS. AS THE WORLD'S LARGEST TELIK MEDICATIONS EQUIPMENTS -- HUAWEI HAS BROUGHT INFLUENCE TO WHAT IF -- MUCH OF WHAT AMERICANS DO IN CHINA. IT HAS BEEN CHARGED IN THE UNITED STATES WITH RACKETEERING CONSPIRACY AND HAS, AS ALLEGED IN THE INDICTMENT, REPEATEDLY STOLEN INTELLECTUALLY -- INTELLECTUAL PROPERTY, OBSTRUCTED JUSTICE, AND LIED TO THE U.S. GOVERNMENT AND COMMERCIAL PARTNERS, INCLUDING BANKS. THE ALLEGATIONS ARE CLEAR. HUAWEI IS A SERIAL INTELLECTUAL THIEF, DISREGARDING BOTH THE RULE OF LAW AND THE RIGHTS OF ITS VICTIMS. IT CERTAINLY CAUGHT MY ATTENTION TO READ A RECENT ARTICLE DESCRIBING THE WORDS OF HUAWEI'S FOUNDER ABOUT THE COMPANY'S MINDSET. AT A HUAWEI RECENT -- DEVELOPMENT CENTER, HE REPORTEDLY SAID TO ENSURE THE COMPANY'SURVIVAL, THEY NEED TO SURGE FORWARD, KILLING AS YOU GO, TO BLAZE US A TRAIL OF BLOOD. HE ALSO REPORTEDLY TOLD EMPLOYEES THAT HUAWEI ENTERED TO "A STATE OF WAR." I HOPE HE COULD NOT HAVE MEANT THAT LITERALLY BUT IT IS HARDLY AN ENCOURAGING TONE, GIVEN THE COMPANY'S REPEATED CRIMINAL BEHAVIOR. IN OUR MODERN WORLD, THERE IS PERHAPS NO MORE OMINOUS PROSPECT THAT A HOSTILE FOREIGN GOVERNMENT'S ABILITY -- AND DEVICES. IF CHINESE COMPANIES LIKE HUAWEI ARE GIVEN UNFETTERED ACCESS TO OUR TELECOMMUNICATIONS INFRASTRUCTURE THEY COULD COLLECT ANY OF YOUR INFORMATION THAT TRAVERSES THEIR DEVICES OR NETWORKS. WORSE STILL, THEY WOULD HAVE NO CHOICE BUT TO HAND IT OVER TO THE CHINESE GOVERNMENT IF ASKED. THE PRIVACY AND DUE PROCESS PROTECTIONS THAT ARE SACROSANCT IN THE U.S. ARE SIMPLY NONEXISTENT IN CHINA. THE CHINESE GOVERNMENT IS ENGAGED IN A BROAD, DIVERSE CAMPAIGN OF THEFT AND MALIGN INFLUENCE, AND IT CAN EXECUTE THAT CAMPAIGN WITH AUTHORITARIAN EFFICIENCY. THEY ARE CALCULATING, PERSISTENT, PATIENT, AND THEY ARE NOT SUBJECT TO THE RIGHTEOUS CONSTRAINTS OF AN OPEN DEMOCRATIC SOCIETY WITH A RULE OF LAW. CHINA, AS LED BY THE CHINESE COMMUNIST PARTY WILL CONTINUE TO TRY TO MISAPPROPRIATE OUR IDEAS, INFLUENCE OUR POLICY MAKERS, MANIPULATE OUR PUBLIC OPINION AND STEAL OUR DATA. THEY WILL USE ALL TOOLS AND ALL SECTORS AND THAT DEMANDS OUR OWN ALL TOOLS AND ALL SECTORS APPROACH AND RESPONSE. OUR FOLKS AT THE FBI ARE WORKING THEIR TAILS OFF EVERY DAY TO PROTECT OUR NATION'S COMPANIES, UNIVERSITIES, COMPUTER NETWORKS, AND OUR IDEAS AND INNOVATIONS. TO DO THAT WE ARE USING A BROAD SET OF TECHNIQUES FROM TRADITIONAL LAW ENFORCEMENT AUTHORITIES TO INTELLIGENCE CAPABILITIES. I WILL NOTE THAT WE ARE HAVING REAL SUCCESS AND WITH THE HELP OF MANY OF OUR FOREIGN PARTNERS WE HAVE ARRESTED TARGETS ALL OVER THE GLOBE. OUR INVESTIGATIONS AND THE RESULTING PROSECUTIONS HAVE EXPOSED THE TRADECRAFT AND TECHNIQUES THE CHINESE USE, RAISING AWARENESS OF THE THREAT AND OUR INDUSTRY'S DEFENSES. THEY ALSO SHOW OUR RESOLVE AND OUR ABILITY TO ATTRIBUTE THESE CRIMES TO THOSE RESPONSIBLE. IT IS ONE THING TO MAKE ASSERTIONS, BUT IN OUR JUSTICE SYSTEM WHEN A PERSON OR CORPORATION IS INVESTIGATED AND CHARGED WITH A CRIME WE HAVE TO PROVE THAT BEYOND A REASONABLE DOUBT. THE TRUTH MATTERS SO THESE CRIMINAL INDICTMENTS MATTER. WE HAVE SEEN HOW OUR CRIMINAL INDICTMENTS HAVE RALLIED OTHER NATIONS TO OUR CAUSE, WHICH IS CRUCIAL TO PERSUADING THE CHINESE GOVERNMENT TO CHANGE ITS BEHAVIOR. WE ARE WORKING MORE CLOSELY THAN EVER WITH PARTNER AGENCIES HERE IN THE U.S. AND PARTNERS ABROAD. WE CAN'T DO IT ON OUR OWN, WE NEED A WHOLE SOCIETY RESPONSE. THAT'S WHY WE IN THE INTELLIGENCE AND LAW ENFORCEMENT COMMUNITIES ARE WORKING HARDER THAN EVER TO GIVE COMPANIES, UNIVERSITIES, AND THE AMERICAN PEOPLE THE INFORMATION THEY NEED TO MAKE THEIR OWN INFORMED DECISIONS TO PROTECT THEIR MOST VALUABLE ASSETS. CONFRONTING THIS THREAT EFFECTIVELY DOES NOT MEAN WE SHOULD NOT DO BUSINESS WITH THE CHINESE. IT DOES NOT MEAN WE SHOULD NOT HOST CHINESE VISITORS. IT DOES NOT MEAN WE SHOULD NOT WELCOME CHINESE STUDENTS OR COEXIST WITH CHINA ON THE WORLD STAGE. IT DOES MEAN THAT WHEN CHINA VIOLATES OUR INTERNATIONAL LAWS AND NORMS WE ARE NOT GOING TO TOLERATE IT OR ENABLE IT. THE FBI AND OUR PARTNERS THROUGHOUT THE U.S. GOVERNMENT WILL HOLD CHINA ACCOUNTABLE AND PROTECT OUR NATION'S INNOVATION, IDEAS, AND WAY OF LIFE WITH THE HELP AND VIGILANCE OF THE AMERICAN PEOPLE. THANK YOU FOR HAVING ME. [APPLAUSE] ...

THANK YOU, DIRECTOR. WE WILL BE TAKING QUESTIONS FROM PEOPLE WHO WERE NOT ABLE TO BE HERE TODAY. IF YOU COULD EMAIL ANY QUESTIONS YOU HAVE TWO EVENTS@HUDS ON.ORG WE WILL BE HAPPY TO TAKE A LOOK AT THEM. A HUDSON STAFF MEMBER WILL LOOK AT THEM AND THE QUESTIONS WILL BE COLLATED AND WE WILL SEE IF WE CAN GET YOUR QUESTION TO THE DIRECTOR. BEFORE THAT, I HAVE A FEW OF MY OWN. THE FIRST ONE IS ON THE MINDS OF A LOT OF AMERICANS WHO LISTEN TO YOUR TALK AND HEAR THAT CHINA IS STEALING PERSONAL DATA AND THEIR EFFORTS MAY BE INTENSIFYING. WHAT WOULD YOU SUGGEST FOR AMERICANS WHO ARE CONCERNED ABOUT THEIR OWN PERSONAL DATA SECURITY FROM CHINA OR OTHER HOSTILE FOREIGN ACTORS? DIR. WRAY: I THINK THE AMERICAN PEOPLE NEED TO TAKE STEPS ON THEIR OWN TO PROTECT THEIR DATA. THAT INCLUDES THINGS LIKE CHANGING PASSWORDS FREQUENTLY AND THINGS LIKE MONITORING YOUR CREDIT HISTORY AND YOUR ACCOUNT TRANSACTIONS TO SEE IF SOMEBODY MAY HAVE STOLEN YOUR IDENTITY. WE HAVE A WHOLE BUNCH OF INFORMATION ABOUT THAT THING ON THE AMERICAN ON THE FBI -- ON THE FBI WEBSITE. ...

HOW WOULD THEY FIND THEIR LOCAL FBI FIELD OFFICE? DIR. WRAY: IT'S PRETTY EASY TO FIND ONLINE. 1 HE SAID THAT --

YOU SAID THAT THERE HAS BEEN A TREND OF INCREASING COOPERATION AMONG OTHER COUNTRIES ON THIS. CAN YOU TALK ABOUT THAT? DIR. WRAY: ONE THING I HAVE FOUND MOST ENCOURAGING IN THE MIDDLE OF EVERYTHING I JUST FINISHED TALKING ABOUT IS THE DEGREE OF ALIGNMENT AND CONSENSUS THAT SEEMS TO BE GROWING BETWEEN THE UNITED STATES AND OUR FOREIGN PARTNERS ON THIS THREAT. ON THE SEVERITY OF THE THREAT, THE PRIORITY OF THE THREAT, IN TERMS OF WORKING TOGETHER TO COMBAT THE THREAT. I FIND WHEN I SIT DOWN WITH MY FOREIGN PARTNERS WHICH I DO ALL THE TIME THAT THIS THREAT, THE CHINESE THREAT IS ONE OF THE FIRST THINGS THEY WANT TO TALK ABOUT EVEN WHEN IT WOULD NOT NECESSARILY BE ON MY AGENDA. I SEE THE SAME THING HAPPENING WITH THE BUSINESS COMMUNITY, WITH ACADEMIA, BOTH HERE IN THE U.S. AND ELSEWHERE. IN MANY WAYS, IN A COMMUNIST COUNTRY WHERE THINGS OFTEN SEEM SO DIVISIVE IT FEELS LIKE SOMETIMES PEOPLE IN THIS COUNTRY CANNOT AGREE ON WHAT DAY OF THE WEEK IT IS. ON THIS THREAT, THE CHINESE THREAT, ON THE SERIOUSNESS, PRIORITY, AND THE NEED TO COME TOGETHER TO TACKLE THE THREAT, I AM SEEING A LEVEL OF ALIGNMENT AND CONSENSUS THAT IS BIPARTISAN ACROSS THE PUBLIC AND PRIVATE SECTOR IN ACADEMIA, AND AS YOU NOTED IN YOUR QUESTION WITH FOREIGN PARTNERS IN A WAY I HAVE NEVER SEEN AND I THINK THAT IS GOOD NEWS. ...

THIS IS CERTAINLY DIFFERENT FROM A LOT OF THE NARRATIVE THAT WE HEAR. DO YOU GET ANY SENSE THAT CHINA IS TARGETING THE NOVEMBER ELECTIONS? DO YOU HAVE ANY SPECIAL CONCERNS ABOUT THAT? DIR. WRAY: CHINA'S MALIGN FOREIGN INFLUENCE CAMPAIGN TARGETS OUR POLICIES, OUR POSITIONS 24 73 65 DAYS A YEAR SO IT IS NOT ELECTION SPECIFIC. IT'S REALLY MORE OF IT ALL YEAR ALL THE TIME THREAT. THERE ARE IMPLICATIONS FOR ELECTIONS AND THEY CERTAINLY HAVE PREFERENCES TO GO ALONG WITH IT. ONE OF THE ISSUES THAT YOU SEE THE MOST CHINESE INFLUENCE -- ...

WHAT ARE THE ISSUES YOU SEE THE MOST CHINESE AND OWENS AROUND?

TAIWAN, HONG KONG, AND HE CALLING OUT OF CHINESE OPPRESSION, HUMAN RIGHTS, THE UIGHUR MUSLIMS, CHINESE RESPONSE TO THE COVID PANDEMIC. THERE IS A LONG LIST OF THINGS. IN SOME WAYS THE CHINESE GOVERNMENT POSCO AND POLICIES, POSITIONS, AND PREFERENCES ARE KNOWN. WHAT IS MORE PERNICIOUS AS THE INDIRECT WAY TO TRY TO SHAPE OUR POLICY MAKERS ON THAT THREAT IN WAYS THAT THE POLICY MAKERS ARE NOT AWARE OF. ...

YOU MENTIONED SOME OF THOSE IN THE TALK, CAN YOU GO BEYOND THAT TO TALK ABOUT WAYS THAT SHYNESS WEEKS TO ASSERT THIS KIND OF INFLUENCE?

DIR. WRAY: IF YOU HAVE A QUESTION ABOUT WHETHER THE CHINESE USE OF THIS OR THAT TACTIC THINK ABOUT A MULTIPLE-CHOICE WHERE THE ANSWER IS ALL OF THE ABOVE AND YOU WILL USUALLY BE RIGHT. ONE OF THE THREATS WE ARE CONCERNED ABOUT IS WHAT I WOULD CALL THE MORE INDIRECT, BUT EQUALLY SIGNIFICANT INFLUENCE THROUGH MIDDLEMEN. FOR EXAMPLE IF YOU ARE A GOVERNOR, STATE SENATOR, OR MAYOR YOU ARE PROBABLY SOPHISTICATED ENOUGH TO KNOW THAT THE REPRESENTATIVE FROM A CHINESE EMBASSY COMES IN AND TELLS YOU YOU HAVE IT ALL WRONG ABOUT HONG KONG AND TAIWAN, TO AT LEAST BE A LITTLE BIT ON YOUR GUARD AND TAKE IT WITH A GRAIN OF SALT. IF THAT PERSON WHO COMES IN AND TALKS TO YOU IS SOMEONE YOU HAVE KNOWN FOR YEARS, MAYBE A PROMINENT DONOR OR SOME BUSINESS YOU HAVE HAD A RELATIONSHIP IN THE PAST, SOMEBODY YOU TRUST AND THAT PERSON SAYS "HEY WALTER, I THINK YOU GOT IT WRONG ON HONG KONG, YOU SHOULD BACK OFF OR GO -- BACK OFF." IF THEY SAY SOMEONE FROM THE CHINESE EMBASSY TOLD THEM TO SAY THAT SURE, BUT THAT'S NOT WHAT IS HAPPENING IN MOST IN -- INSTANCES. YOU NEED TO HAVE THE INFORMATION SO YOU AS THE MEMBER OF CONGRESS -- ...

WHEN IT COMES TO UNIVERSITIES CHINA HAS A LOT OF POINTS OF LEVERAGE FROM ALLOWING SCHOLARS TO COME VISIT CHINA WHICH IS NECESSARY FOR SOME COOPERATION AGREEMENTS BUT ALSO WE COULD ADD STUDENT RECRUITMENT. DO YOU SEE SIGNS THAT CHINA TRIES TO ORCHESTRATE ITS VARIOUS SORT OF INSTRUMENTS HERE TO MOVE UNIVERSITIES TO ACCEPT CERTAIN THINGS? DIR. WRAY: CERTAINLY THEY LOOK TO TRY TO INFLUENCE ACADEMICS. WE SEE THAT QUITE FREQUENTLY. WE SEE THEM TRY TO RECRUIT ACADEMICS THROUGH THINGS LIKE OF THE THOUSAND TALENTS PLAN THAT I DESCRIBED BEFORE. WE ALSO HAVE THINGS AND I HAVE SPOKEN ABOUT THIS BEFORE, BETTER SORT OF SOFT POWER LIKE THE CONFUCIUS INSTITUTES THAT ARE IN A LOT OF AMERICAN COLLEGES AND UNIVERSITIES WHICH ARE EFFORTS TO CENSOR OR DRIVE CHINA FRIENDLY SPEECH IN A DECIDEDLY UNORTHODOX WAY HERE IN THE U.S.. THE GOOD NEWS THERE IS THAT MORE AND MORE UNIVERSITIES ARE CLOSING THOSE DOWN, SO IN SOME WAYS THAT IS NOT A HIGH OF A PRIORITY AS OTHER THINGS I DESCRIBED. ...

THESE CONFUCIUS INSTITUTES, HOW DO THEY WORK? DIR. WRAY: IT IS AN EFFORT TO BRING STUDENTS TOGETHER TO ENSURE THAT THE CHINESE NARRATIVE MAKES ITS WAY INTO AND DOMINATES THE CONVERSATION ON UNIVERSITIES. I COULD BE MORE SPECIFIC BUT THAT WOULD TAKE LONGER. ...

LET'S TALK ABOUT THE BUSINESS AND TECHNOLOGY SECURITY CONCERNS. ARE THERE PARTICULAR AREAS WHERE YOU SEE CHINESE ESPIONAGE HAD A LEVEL WHERE THEY SEEM...

AS A GENERAL RULE CHINA HAS THESE FIVE-YEAR PLANS AND THE MADE IN CHINA GOAL STRATEGY THEY ARTICULATED. IF YOU LOOK AT THE INDUSTRY SECTORS THAT ARE LAID OUT ON THAT POINT AND STRATEGY YOU WILL SEE A LESS THAN COINCIDENTAL COORDINATION WITH A LOT OF THE PROPERTIES I WAS DESCRIBING. AVIATION, HEALTH CARE IN THE MIDDLE OF THIS PANDEMIC, IT IS NOT UNUSUAL FOR US TO SEE RIGHT AFTER SOME PHARMACEUTICAL COMPANY OR RESEARCH INSTITUTION MAKES SOME SIGNIFICANT ANNOUNCEMENT ABOUT SOME PROMISING RESEARCH RELATED TO THE PANDEMIC, THEY WILL START SEEING CYBER ACTIVITY FACING BACK TO CHINA TARGETING WHATEVER THAT INSTITUTION IS, ALMOST THE NEXT DAY. AVIATION, HEALTH CARE, ROBOTICS, SOMETIMES EVEN AGRICULTURE. THAT IS ONE THING A LOT OF PEOPLE DON'T UNDERSTAND. WHEN I MENTIONED ALL 56 OF THE FBI'S FIELD OFFICES HAVE INVESTIGATIONS OF THIS SORT, THAT IS NOT BECAUSE WE ARE TRYING TO SPREAD THE WORK AROUND , THAT IS BECAUSE THE THREAT IS ALL OVER THE COUNTRY IN RURAL AREAS AND BIG CITIES. ...

FORTUNE 100S DOWN TO SMALL STARTUPS. DO YOU HAVE ANY ESTIMATES FOR HOW MUCH DAMAGE IS DONE TO AMERICAN BUSINESSES BY THIS TYPE OF ESPIONAGE? DIR. WRAY: I DON'T HAVE AN EXACT NUMBER. PEOPLE ARE TRYING TO COME UP WITH A FIGURE. EVERY FIGURE I HAVE SEEN IS BREATHTAKING. ...

SO BILLIONS AND NOT JUST A FEW BILLION. DIR. WRAY: IF YOU TAKE THE CASE I'VE MENTIONED IN OKLAHOMA WHERE YOU HAD AN INDIVIDUAL, THAT IS ONE GUY, STEALING $1 BILLION WORTH OF TRADE SECRETS FROM ONE COMPANY AND YOU EXTRAPOLATE THAT ACROSS THE THOUSAND OR SO INVESTIGATIONS I DESCRIBED AND THEY ARE ALL PARTICULARLY IN THE AREA OF CHINESE THEFT OF U.S. TECHNOLOGY. ...

IS THEIR LEGISLATIVE AUTHORITY THAT YOU DON'T HAVE THAT YOU WOULD LIKE?

WELL, YOU HAVE PROBABLY NEVER MET AN FBI DIRECTOR THAT WOULD NOT WELCOME MORE TOOLS. I WILL SAY CONGRESS HAS DONE A NUMBER OF VALUABLE THINGS TO HELP US, INCLUDING NOT THAT LONG AGO THEY AMENDED THE LEGISLATIVE SCHEME FOR THOSE WHO DON'T KNOW THAT DEALS WITH ACQUISITIONS -- FOREIGN ACQUISITIONS IN THE UNITED STATES. THAT IS OFTEN A PLACE WHERE SOME OF THE MORE SENSITIVE INFORMATION CAN BE COMPROMISED THROUGH A FOREIGN ACQUISITION. SOME OF THE HOLES THAT EXISTED IN THAT SCHEME BEFORE MADE IT MORE POSSIBLE FOR THE NATIONAL SECURITY COMMUNITY TO APPROPRIATELY COLLECT AMERICAN INFORMATION. ...

SOME QUESTIONS COMING IN FROM THE AUDIENCE AT THIS POINT. ONE IS ASKING, HOW PREVALENT IS THE FLOTSAM PROBLEM WITHIN THE U.S. AND EUROPE AND CAN YOU DISCUSS ANY SIMILAR TACTICS THE CCP IS CONDUCTING? DIR. WRAY: IN TERMS OF THE PREVALENCE OF THE FOX HUNT EFFORTS WE HAVE SEEN HUNDREDS JUST HERE IN THE UNITED STATES. YOU COULD CALL THEM TARGETS AND VICTIMS. HUNDREDS OF INDIVIDUALS THAT THE CHINESE GOVERNMENT IS TRYING TO REACH AND COERCE. IT IS ALSO HAPPENING IN MY SPEECH IN OTHER COUNTRIES AS WELL. IN TERMS OF THE TACTICS IT IS A VARIETY OF MEANS OF COERCION. WE HAVE SITUATIONS WHERE THEY SHOW UP AND THEY COMMENT ABOUT THEIR FAMILY MEMBERS BACK HOME IN CHINA IN A WAY THAT IS PRETTY UNMISTAKABLY THREATENING. IF YOU USE YOUR IMAGINATION YOU WILL NOT BE FAR OFF. ...

HAVE WE BEEN WORKING WITH OTHER GOVERNMENTS TO TRY TO COUNTER THIS? DIR. WRAY: WE CERTAINLY HAVE WORKED WITH A LOT OF OUR GOOD FOREIGN PARTNERS TO COMPARE NOTES, BEST PRACTICES AND SO FORTH TO TRY TO COMBAT THE FOXCONN THREAT. THERE IS ANOTHER PART OF COORDINATION THAT IS IMPORTANT. AT ONE LEVEL THERE IS AN ESTABLISHED MEANS -- THERE ARE ESTABLISHED PROCESSES FOR FOREIGN LAW ENFORCEMENT TO COOPERATE WITH ONE ANOTHER. LEGITIMATE FOREIGN COOPERATION HAPPENS ALL THE TIME ALL OVER THE WORLD. THERE IS A WAY YOU DO THAT AND YOU COORDINATE WITH LAW ENFORCEMENT IN THE COUNTRY THAT THE PERSON THAT IS IN. THAT IS NOT WHAT FOX HUNT IS. THESE PEOPLE ARE ENGAGED IN ROGUE LAW ENFORCEMENT, UNSANCTIONED, UNCOORDINATED WITH LAW ENFORCEMENT IN THE U.S.. THAT REALLY EXPOSES WHAT THIS IS ABOUT WHICH IS ABOUT SUPPRESSING DISSENT AND TRYING TO PRESSURE DISSIDENTS. ...

WHAT CAN COUNTRIES DO TO MAKE THIS RESPONSE TO CHINESE QUESTIONABLE CONDUCT MORE URGENT AND MORE OF AN ACTUAL DETERRENT TO CHINA? DIR. WRAY: THE MORE WE CAN COMMUNICATE COLLECTIVELY NATIONS AROUND THE WORLD THAT WE WELCOME COMPETITION, WE WELCOME ACADEMIC EXCHANGE, WE WELCOME TRAVEL, BUT RAMPANT I -- IP THEFT IS NOT OK. CORPORATE ESPIONAGE IS NOT OK. IT'S ABOUT THE BEHAVIOR. THE MORE WE CAN COMMUNICATE THAT PART OF PARTICIPATING IN A GLOBAL ECONOMY IS PLAYING BY THE RULES THAT OTHER NATIONS PLAYED BY. ADHERING TO THE RULE OF LAW AND INTERNATIONAL NORMS THAT CIVILIZED COUNTRIES RESPECT, THE MORE HOPEFULLY THE CHINESE GOVERNMENT WILL ADJUST ITS BEHAVIOR TO UNDERSTAND THERE IS A RIGHT WAY TO COMPETE AND A WRONG WAY TO COMPETE. IF THEY KEEP VIOLATING OUR CRIMINAL LAWS AND UNDERMINING OUR NATIONAL SECURITY THEY WILL KEEP ENCOUNTERING THE FBI. ...

ANOTHER ONE THE VIEWERS WOULD LIKE TO KNOW, WHETHER THERE IS SOME KIND OF GLOBAL INSTITUTIONAL FRAMEWORK NEEDED TO FIGHT THIS IP THEFT AND TECH SECURITY THEFT? DIR. WRAY: THAT IS BEING ADDRESSED THROUGH A VARIETY OF MEANS WITH SOME IMPROVEMENT, BUT THERE IS A LONG WAY TO GO. NATIONS WORKING TOGETHER IN A BILATERAL WAY, BUT ALSO MULTILATERAL. THERE ARE INTERNATIONAL STANDARD-SETTING BODIES OF ALL SHAPES AND SIZES THAT WE TO SOME EXTENT AND OTHER NATIONS PARTICIPATED IN. NATIONS COMING TOGETHER IN THOSE KINDS OF FORMS TO MAKE CLEAR THAT THERE ARE RULES. NO COUNTRY I KNOW THINKS THAT STEALING SOMEBODY ELSE'S PROPERTY IS OK. ...

ANOTHER QUESTION. IN THE RECENT CASE OF THE CHINESE NATIONAL CONVICTED OF TRESPASSING AT A NAVAL AIR STATION, THE PERSON WAS FOUND TO BE WORKING FOR THE CHINESE MINISTRY OF PUBLIC SECURITY, NOT THE MINISTRY OF STATE SECURITY OR PLA INTELLIGENCE. HAS THE FBI SEEN TRYING TO USE THE MINISTRY OF PUBLIC SECURITY AND INTELLIGENCE OPERATIONS IN THE U.S. -- AGAINST THE U.S.? DIR. WRAY: THE FOX HUNT EFFORT IS MORE THROUGH THE MPS THAN IT IS THE MSS OR PLA ALL THE THINGS I AM DESCRIBING IN MY REMARKS ARE GEARED MORE TOWARDS MSS THAN PLA. ...

ANOTHER VIEWER WOULD LIKE TO KNOW MORE ABOUT CHINESE INTEREST IN AGRICULTURE AND IP THEFT THERE, CAN YOU TELL US MORE ABOUT WHAT THEIR TARGETS ARE AND HOW IT WORKS? ...

THE UNITED STATES IS RIGHTLY RECOGNIZED AS THE WORLD LEADER IN THE AGRICULTURE AND ADVANCED AGRICULTURAL TECHNIQUES. THAT INCLUDES THINGS LIKE GENETICALLY MODIFIED SEEDS AND DIFFERENT THINGS LIKE THAT. THERE IS A NORMA'S AMOUNT OF VERY SOPHISTICATED RESEARCH AND DEVELOPMENT THAT HAPPENS IN THE WORLD OF AGRICULTURE. WE HAVE CASES IN THE MIDWEST, WE HAVE CASES IN PLACES LIKE KANSAS, IOWA, NEBRASKA, WHERE YOU HAD PEOPLE TRYING TO STEAL CHINESE -- CHINESE ACTORS TRYING TO STEAL TO BRING BACK TO CHINA TO ESSENTIALLY REVERSE ENGINEER SOME OF THOSE THINGS. IT COULD BE RICE, CORN -- WE HAD A STATE WHERE THEY CAUGHT VARIOUS NONSTATE ACTORS WORKING ON BEHALF OF THE CHINESE GOVERNMENT BASICALLY DIGGING UP SEEDS UNDER THE COVER OF NIGHT TO STEAL THEM. WE HAD ANOTHER ONE WHERE THEY WERE CAUGHT AT THE AIRPORT WITH SEEDS IN THEIR LUGGAGE TO TRY TO BRING THEM BACK. WHEN YOU LOOK AT THE BULK OF THE CASES THE FBI HAS THUS FAR BROUGHT AGAINST RESEARCHERS, MOST OF THE VAUGHT -- ...

ARE MOST OF THE VIOLATIONS -- LOOKING AT TRANSMISSION OF SPECIFIC RESEARCH INSIDE IP. HOW DOES THAT UNIVERSE BREAKDOWN? DIR. WRAY: WE WILL USE WHATEVER CHARGES WE THINK ARE THE MOST PROVABLE AND IN SOME INSTANCES WE WILL CHOOSE TO CHARGE A CASE A CERTAIN WAY TO PROTECT SOURCES AND METHODS. WE ARE TRYING TO TAKE THE LONG VIEW. CERTAINLY THERE ARE A VARIETY OF INTELLECTUAL PROPERTY THEFT TYPE CHARGES, BUT A LOT OF THE CHARGES I DESCRIBED OUR ABOUT CONCEALMENT AT SOME LEVEL. IT'S NOT JUST THE UNDERLYING THEFT, IT IS THE CONCEALMENT OF THE THEFT AND THAT IS WHERE THINGS THAT INCLUDE FALSE STATEMENTS, FALSE TAX RETURNS, AND THINGS LIKE THAT BECOME IMPORTANT. THEY ARE CONCEALING THEIR RELATIONSHIP WITH THE CHINESE GOVERNMENT, WHETHER IT IS AN AMERICAN UNIVERSITY OR AMERICAN EMPLOYER. AT THE END OF THE DAY I HAVE HIGH CONFIDENCE IN AMERICAN COMPANIES, AMERICAN UNIVERSITIES, AND THE AMERICAN PEOPLE IF GIVEN THE RIGHT INFORMATION TO MAKE INFORMED, SENSIBLE PATRIOTIC DECISIONS. WHEN SOME OF THESE NONSTATE ACTORS CONCEAL THEIR RELATIONSHIP WITH THE CHINESE GOVERNMENT, THE EMPLOYER'S LIKE COMPANIES AND UNIVERSITIES CANNOT MAKE THE INFORMED DECISIONS. ...

YOU HAVE BEEN TALKING ABOUT A WHOLE OF SOCIETY APPROACH TO THE PROBLEM IN THE FORM OF NONGOVERNMENTAL ACTORS IN THE U.S.. DOES THE FBI OR DOJ HAVE RESOURCES FOR PRIVATE SECTOR ENTITIES? WHAT WOULD YOU COUNSEL THESE ENTITIES TO DO? DIR. WRAY: IN ALL OF OUR FIELD OFFICES WE HAVE ESTABLISHED INDIVIDUALS WHO ARE ENTRUSTED WITH DEVELOPING RELATIONS WITH BUSINESSES AND UNIVERSITIES IN THEIR AREA. PRIVATE SECTOR COORDINATORS. THAT IS A NEW FEATURE OVER THE LAST 10 OR 15 YEARS IN THE FBI AND IT REFLECTS THE DEGREE OF PARTNERSHIP THAT CURRENTLY IS NEEDED AND HAPPENS BETWEEN THE FBI AND THE PRIVATE SECTOR WHETHER IT IS A BUSINESS OR UNIVERSITY. THE RESOURCES WE PROVIDE, NOT FUNDING, BUT INFORMATION. IT IS INFORMATION ABOUT HOW THEY CAN TAKE STEPS TO PROTECT THEIR INFORMATION TECHNOLOGY, IDEAS AND INNOVATIONS. WE HAVE MATERIALS WE PROVIDE, WE ANSWER QUESTIONS AND THINGS LIKE THAT. I HAVE BEEN TO ALL 56 FBI FIELD OFFICES, AND IN EVERY SINGLE ONE PART OF WHAT I HAVE DONE IS MET WITH PRIVATE SECTOR PARTNERS IN THOSE STATES AND YOU CAN SEE THE RELATIONSHIP, THE PARTNERSHIP THAT EXISTS. I WANT TO BE CLEAR, THESE ARE INSTITUTIONS, I AM TALKING PRIVATE COMPANIES AND UNIVERSITIES -- THEY ARE VOLUNTARILY DECIDING TO TERMINATE A RELATIONSHIP TO INCREASE THEIR CYBERSECURITY, WHATEVER HAPPENS -- I THINK THAT IS ONE OF THE STRENGTHS OF OUR SYSTEM. IT IS CLEAR THAT THE FBI, DOJ, AND OTHER FEDERAL ENTITIES ARE STEPPING UP THEIR PRESSURE ON THIS -- ...

ARE YOU SEEING SIGNS OF CHINA CHANGING TACTICS OR PULLING BACK A LITTLE? IS ANY OF THIS HAVING AN IMPACT ON CHINA? DIR. WRAY: I THINK IT IS HAVING AN IMPACT. WHETHER THE IMPACT WILL BE ONE WE HAVE IN THE LONG RUN REMAINS TO BE SEEN. CERTAINLY WE HAVE SEEN CHINA IN SOME WAYS BE LESS OVERT ABOUT SOME OF THEIR TACTICS. OPEN QUESTION AS TO WHETHER THAT IS PROGRESS. ARE THEY HIDING IT BETTER OR HOLDING IT BACK? I THINK THEY ARE STARTING TO GET THE MESSAGE WITHOUT GETTING INTO THE REASONS WE KNOW THAT. WE ARE NOT GOING TO TOLERATE VIOLATIONS OF OUR LAWS. ...

WE ARE COMING TO A CLOSE HERE. YOU SPOKE A LOT IN YOUR SPEECH ABOUT THE NEED TO KEEP OPEN CHANNELS WITH CHINA, NOT FOR A TAX ON THE CHINESE GOVERNMENT, NOT TO BLEED OVER TO ATTACKS ON CHINESE -- WHAT CAN WE DO TO KEEP STUDENTS AND OTHER CHINESE WELCOME HERE EVEN AS ALL OF THIS IS GOING ON? ...

THE WAY I LOOK AT IT THEY ARE TARGETING OUR SYSTEM, OUR IDEAS, OUR INNOVATION IN A WAY -- YOU KNOW THE SAYING IMITATION IS THE MOST SINCERE FORM OF FLATTERY? THEY ENVY THE SUCCESS OF OUR SYSTEM AND THEY SHOULD. WE ARE PROUD OF THE FREEDOM AND THE FREE MARKET ENVIRONMENT THAT WE HAVE HERE. I THINK IT IS IMPORTANT TO MAKE CLEAR THAT WE ARE NOT AFRAID OF COMPETITION. WE ARE NOT AFRAID OF COMPETITION OVER BUSINESS OR IDEAS. IT IS ABOUT THE BEHAVIOR. THE BEHAVIOR IS WHAT HAS TO CHANGE. IT IS ABOUT THE RULE OF LAW AT THE END OF THE DAY. ...

THANK YOU FOR JOINING US TODAY. IT HAS BEEN A TERRIFIC SESSION. I HAVE LEARNED A LOT IN THIS EMERGING U.S. CONSENSUS OVER HOW TO DEAL WITH SOME ASPECTS OF CHINESE BEHAVIOR IS ONE OF THE MOST STRIKING THINGS WE SEE EVEN IN A VERY DIVIDED AND POLARIZED MOMENT IN AMERICAN LIFE. MR. DIRECTOR, THANK YOU FOR JOINING US. DIR. WRAY: THANKS FOR HAVING ME. [APPLAUSE] [NO AUDIO] ...

MORE LIVE COVERAGE COMING UP AT NOON EASTERN WHEN A HOUSE FINANCIAL SERVICES SUBCOMMITTEE HOLDS A HEARING ON THE EFFECT OF THE CORONAVIRUS PANDEMIC ON JOBS. THAT STARTS AT NOON EASTERN ON C-SPAN. AT TWO: 30, THE WHITE HOUSE CORONAVIRUS TASK FORCE COORDINATOR, DR. DEBORAH BIRX, WILL BE JOINED BY AMBASSADORS FROM SEVERAL COUNTRIES TO TALK ABOUT COVID-19 IN A VIRTUAL EVENT HOSTED BY THE ATLANTIC COUNCIL. THE HOUSE APPROPRIATIONS SUBCOMMITTEE DEBATES AND VOTES ON 2020 ONE SPENDING LEVELS FOR THAT LABOR DEPARTMENT HEALTH AND HUMAN SERVICES AND THE DEPARTMENT OF EDUCATION. YOU CAN WATCH ALL OF THESE CHANGES ONLINE ON C-SPAN.ORG OR LISTEN LIVE ON THE C-SPAN RADIO APP. ...