Friday, November 16, 2007

US accuses China of vast industrial spying

China is running an "aggressive and large-scale industrial espionage campaign" against American technology, a US congressional commission says, in a report that will exacerbate growing tensions between the two countries.

The hard-hitting report, by the US-China Economic and Security Review Commission, accused China of backsliding over free trade reforms and of using spies to enable its companies to get hold of technology without having to pay for the research.

"Chinese espionage activities in the United States are so extensive that they comprise the single greatest risk to the security of American technologies," it said, adding that scientists and engineers were enlisted to get hold of secrets "by whatever means possible - including theft".

At a time when China's growing industrial strength and its effects on manufacturing in America are becoming a major election issue, the report will worsen fears that two of the world's biggest economies are heading for a trade war as well as gearing up for a new arms race.

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