DoD and Other U. S. Research Investments End Up in China

Marco Rubio, Joni Ernst, and John Kennedy are introducing a bill that would ban companies based in China or owned by Chinese entities from receiving U.S. taxpayer help through the Small Business Administration. Yes, this is legal.

Sen. Marco Rubio sponsored the Going to China Act, aiming to block any SBA assistance from going to Chinese citizens, with the bill saying that U.S. taxpayer assistance through SBA may not be provided to any small business that is headquartered in China or that has more than 25% of the voting stock of the company owned by affiliates that are citizens of China.

American Companies Too

A damning report from the U.S. Department of Defense has found that China is exploiting federal programs to steal technology.

“China, not the U.S., is the ultimate beneficiary of DoD and other [U. S. Government] research investments.”

Republican Sen. Joni Ernst said on Wednesday that American companies funded by taxpayer dollars from the Department of Defense and other agencies to develop the technology are then “recruited by China to continue their work at institutions associated with People’s Liberation Army. The U.S. company is then dissolved and the research and intellectual property paid for U.S. tax dollars is transferred to a subsidiary in China.”

“Just like that, American-made ingenuity is shipped overseas to our leading global adversary … and we, the American taxpayers, are funding it! This isn’t just another case of intellectual property theft.  This ongoing scheme has national and economic security implications according to the Pentagon,” Ernst said, in a statement to the Daily Wire.

“Washington is spending billions of your tax dollars every year to hypothetically achieve technological dominance over communist China, but the ultimate beneficiary of that effort may be … China,” Ernst said in a Sept. 28 statement made available to The Epoch Times.

“That is the shocking conclusion of a Department of Defense (DoD) review that found China was stealing technology developed in the United States by exploiting the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.”

“This is how it works: American companies receiving taxpayer assistance for technology development from DoD and other agencies are recruited by China to continue their work at institutions associated with [the] People’s Liberation Army,” Ernst said.

“The U.S. company is then dissolved, and the research and intellectual property paid for [with] U.S. tax dollars is transferred to a subsidiary in China. Just like that, American-made ingenuity is shipped overseas to our leading global adversary … and we, the American taxpayers, are funding it.”

Sen. Paul warned of this exploitation by greedy companies in June.

The DoD report also indicated that companies hire Chinese researchers who eventually leave and go to China — with the technology.

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