CIA Expands Espionage Against Chinese Firms to Counter Economic and Military Threats
The CIA is expanding its espionage operations to target Chinese companies in artificial intelligence and semiconductors. Deputy Director Michael Ellis cited growing economic and military threats ahead of the upcoming U.S.-China presidential summit.
The United States is expanding its espionage operations against China, including targeting Chinese companies, in an effort to counter the military and economic threat posed by the Asian superpower, CIA Deputy Director Michael Ellis revealed.
Evolving Intelligence Collection
During a rare public appearance at a cybersecurity conference in Washington, Ellis explained that the intelligence-gathering nature of the CIA and other intelligence agencies has undergone a significant evolution since the Cold War era. Unlike past geopolitical rivals, he noted, China presents "an entirely different kind of threat because the competition is economic."
Western officials point out that under the rule of the Communist Party, China lacks an independent business sector akin to that of the United States or Europe. Ellis argued that this fact makes Chinese companies a legitimate target for espionage in fields such as artificial intelligence, semiconductors, and biotechnology.
«We have always collected intelligence in one way or another. What is different now is that it is not just about tanks, missiles, and submarines.»
To acquire valuable intelligence on these technologies, the CIA has been forced to expand its mandate, as such information "is not found in the same places where political or military intelligence is found," Ellis noted, adding that the data resides "in the private sector, or what is closest to the private sector in China."
Shift in Policy and Trade Summit
According to a report in The Times, Ellis's remarks represent a subtle departure from the policies of previous administrations, which traditionally distinguished between legitimate espionage for national security and foreign policy purposes versus economically motivated spying. In a brief interview following his speech, Ellis clarified the broader scope.
The timing of the statement is not accidental. President Donald Trump is scheduled to host Chinese President Xi Jinping this month for a state visit, where competition in trade and artificial intelligence is expected to take center stage. Simultaneously, the Trump administration issued a warning stating that Chinese artificial intelligence companies are engaged in industrial-scale theft of trade secrets from American firms. The advisory, published by the National Security Agency (NSA), the FBI, and the Cybersecurity and Infrastructure Security Agency (CISA), named several leading Chinese companies involved in this practice since 2024.
Cyber Operations and Critical Infrastructure
During his speech, Ellis praised recent changes within the CIA, including the upgrading of the agency's cyber mission center, which he said enabled the administration to meet its national security goals. As an example of success, Ellis cited the January 2026 U.S. operation in Venezuela that led to the capture of Nicolás Maduro. He emphasized that the operation was made possible thanks to a flawless intelligence picture built on cyber operations, which allowed special forces to locate Maduro and arrest him within four minutes of landing.
Concluding his remarks, Ellis addressed threats to U.S. critical infrastructure from foreign state hackers. He warned that the infiltration of American telecommunications networks, known as Salt Typhoon and attributed to China, remains a critical threat nearly two years after its discovery. Ellis noted that this operation and other attacks highlight the government's need to assist the private sector in defending itself.
