US advisory panel says Chinese spying is US technology's No. 1 threat

A congressional advisory panel said Thursday that Chinese spying in America represents the greatest threat to U.S. technology and recommended lawmakers consider financing counterintelligence efforts meant to stop China from stealing U.S. manufacturing expertise.

The U.S.-China Economic and Security Review Commission also said in its annual report to Congress that small and medium U.S. manufacturers, which represent more than half the manufacturing jobs in America, "face the full brunt of China's unfair trade practices, including currency manipulation and illegal subsidies for Chinese exports."

China's economic policies create a trade relationship that is "severely out of balance" in China's favor, said the commission, which Congress set up in 2000 to investigate and report on U.S.-China issues.

Carolyn Bartholomew, the commission's chairwoman, told reporters that "China's interest in moving toward a free market economy is not just stalling but is actually now reversing course."

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