C
ybersecurity has captured the attention of policymakers around a range of
technical and economic questions, but this convenient term can muddy dif-
ferent threats and challenges. Perhaps the most important and least under-
stood is the question of what some have labeled economic espionage, and we call
Cyber Theft of Competitive Data. Properly identifying and clearly understanding the
scope of this issue is critical for several reasons. First, it has become central to the
US cyber agenda, particularly as the Administration works with the Chinese govern-
ment. Both Vice President Biden and Treasury Secretary Lew specifically addressed
the importance of addressing this issue in the recent Strategic and Economic Dia-
logues with China.
Second, from a policy perspective, a better understanding of the problem will help
promote the urgency of a response from Congress and the White House. At the same
time, it will help tamp down some of the aggressive rhetoric that has surrounded
this issue A member of the independent Commission on the Theft of American
Intellectual Property has testified that the scope theft of American intellectual
property was “comparable to the current annual level of U.S. exports to Asia,” and
pointed to China as the chief culprit.
1
For their part, the Chinese call the accusations
of economic espionage ‘unfounded,’ and caution that they are ‘hyped into something
that would overshadow and obstruct’ cooperation between the US and China. This
issue has dominated headlines for the past year, with bold statements and confusion
on all sides.
2
Even the official in charge of defending American cyberspace, Cyber
1. Slade Gorton. Testimony before the House Energy & Commerce Committee; Subcommittee on Over-
sight and Investigations. July 9, 2013. http://docs.house.gov/meetings/IF/IF02/20130709/101104/HHRG-
113-IF02-Wstate-GortonS-20130709-U1.pdf
2. Yang Quingchaun. Commentary: Don’t let cyber security overshadow key China-U.S. dialogue. Xinhua
Allan A. Friedman
is a fellow in Governance
Studies and research
director of the Center
for Technology
Innovation at the
Brookings Institution.
INTRODUCTION
Cyber Theft of Competitive Data:
Asking the Right Questions
Allan A. Friedman
September 2013
