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China Businesses Government United States Technology

Pentagon's China Warning Prompts Calls To Vet US Funding of Startups (wsj.com) 20

Congress may soon require government agencies to vet tech startups seeking federal funding, after a Defense Department study found China is exploiting a popular program that funds innovation among small American companies. From a report: The study, which was viewed by The Wall Street Journal, found China is using state-sponsored methods to target companies that have received Pentagon funding from the Small Business Innovation Research program. The SBIR program for decades has sought to promote innovation through a competitive U.S. government award process.

The April 2021 report, which has been circulating among lawmakers on Capitol Hill, details eight case studies it says have "national and economic security implications." The studies include examples of program participants who dissolve their American companies, join Chinese government talent programs and continue their work at institutions that support the People's Liberation Army, the armed wing of the Communist Party. The report also documents instances of SBIR recipients taking venture-capital money from Chinese state-owned firms and of working with Chinese entities that support the country's defense industry. The report concludes that the SBIR program needs a due-diligence process to identify entities of potential concern that would then receive a more detailed review.

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Pentagon's China Warning Prompts Calls To Vet US Funding of Startups

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  • As if anyone is loyal to their nation anymore. Same with “British” companies or “German” companies. Perhaps “Japanese” companies still love their headquarters' nation as a matter of self-preservation or of national pride. But nearly everyone else is merely making their next boat payment by prostituting themselves to the highest bidder. This is how civilizations die, when no one loves their own civilization anymore, but instead squanders it as sell-outs.
    • by whitroth ( 9367 )

      Oh, you mean like "American" companies such as Apple (how much of them is located in Ireland, and what did they pay in US taxes?).

      Ass. The ultrawealthy are their own nation-states, and they care about anything other than the game token "who's richer?".

    • Well to be fair, america is just a neo-colony
  • "How dare these people take government subsidies without giving anything back to the public domain! That was my idea!"

    • The government subsidies exorbitant privilege came from the world, not the american taxpayer as do most phd stem graduates from american universities. Labor > capital
      • There is no two column accounting at the federal level in the USA. Income tax only exists to fight inflation, and as a sin tax for class mobility.

  • There was a point in my life when I was working at a People Liberation Air Force college. I was having lunch with a general officer (don't be impressed, after all the PLA made a USO singer into a general). During this lunch, the general asked me a question that I consider to be more telling of China than my answer was illuminating for him.

    He asked me why we allowed Chinese into our research facilities, he stressed that, “They are Chinese, you have to know they are spies.” I gave the usual ans
    • Understandable. In open societies the default is to share, in closed societies, it's to withhold information. Now there are no truly open societies, and military and trade secrets complicate things even more. So clearly, you need more than money to get the know-how to build nukes (money could still be part of the "deal" of course).

      • If amerikkka was a closed society it would of already lost to ussr in the cold war. As the dumbing down of american education continues. Just watch american reality tv and network television lol
    • Many countries, Italy for example, have mandatory military service for men, and along with that comes swearing an oath to protect the mother country, and this is sometimes taken seriously, with debriefings when these students return home. My answer was that the USA is trying to set an example by being open and sharing information and knowledge. It is showing that it is possible to be open and working towards a free world while still protecting yourself. Secrets are overrated, particularly since you can't
  • by Bu11etmagnet ( 1071376 ) on Tuesday May 10, 2022 @03:15AM (#62518694)

    The Pentagon now owns China? Does it include Taiwan?

    Or is it a different China?

Love may laugh at locksmiths, but he has a profound respect for money bags. -- Sidney Paternoster, "The Folly of the Wise"

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