Sen. Ted Cruz questioned an expert witness about China’s role in intellectual property theft during a recent exchange, pointing to multiple cases and estimates of significant financial losses to the United States economy.
Cruz began by referencing a recent enforcement action involving a Chinese telecommunications firm.
“Thank you, Mr. Chairman, last month, a Chinese telecommunications agency Hytera was fined $50 million in federal court for stealing American technology,” Cruz said. He also cited a separate case involving a technology employee. “In January of this year, a Google engineer was convicted of stealing artificial intelligence secrets for the Chinese government.”
Cruz characterized these incidents as part of a broader pattern.
“This is not a pattern of isolated incidents. This is a coordinated campaign directed by the Chinese Communist Party to steal its way to global dominance.”
He then asked Mark Cohen, an expert witness, about estimates of economic losses attributed to intellectual property theft.
“Mr. Cohen, both the US government and private sector analysts estimate that the American economy loses between 400 billion and 600 billion each and every year due to China’s intellectual property theft. Is that correct?”
Cohen confirmed the figures cited.
“That’s the estimate by the US government and others, yes.”
Cruz continued by asking whether China is widely viewed as a leading source of intellectual property theft.
“Is it correct that the Chinese Communist government is widely regarded as the world’s most aggressive thief of intellectual property, stealing and copying everything from sneaker designs to plans for military aircraft?”
Cohen responded by qualifying that assessment.
“I would not agree that it’s necessarily the Communist Party there are incentives that the party or the leadership puts in place that people avail themselves of.”
Cruz followed up by asking about the role of the Chinese government more broadly. “Is it the Chinese government?”
Cohen replied that responsibility could extend beyond a single entity.
“It could be the Chinese government. Could be local governments, but that’s not necessarily the party saying going out to steal.”
Cruz then connected the structure of the Chinese government to the ruling party.
“And the Chinese government is controlled by the Chinese Communist Party. That’s correct, okay, and hasn’t the FBI described China’s intellectual property theft as the largest transfer of wealth in human history?”
Cohen confirmed that characterization. “Yes, it has.”
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The exchange highlighted ongoing concerns raised by U.S. officials regarding intellectual property theft and its economic impact, as well as differing views on how responsibility is attributed within China’s government and political system.