A bipartisan House Select Committee on the Chinese Communist Party has warned that China is running an increasingly sophisticated campaign of economic espionage and political influence operations across the United States, extending well beyond federal institutions to target state governments, universities, local businesses, and community organisations. The hearing, held on 27 June in Washington, drew agreement from lawmakers on both sides of the aisle that Beijing's activities pose a mounting threat to US economic and national security.

What the Committee Heard

Committee Chairman John Moolenaar described the Chinese Communist Party (CCP) as engaged in 'an epic campaign to undermine the United States here at home,' encompassing economic espionage, cyber intrusions, covert lobbying, influence operations, and transnational repression. He argued that Beijing makes no distinction between national and subnational targets. 'State legislatures, municipal governments, school boards, public universities, local businesses and community associations are all soft targets,' Moolenaar said, adding that Beijing routinely uses trade partnerships, academic exchanges, investment initiatives, and community organisations to collect strategic information and shape local decision-making.

The Bipartisan Warning — With a Caveat

The committee's ranking Democrat, Congressman Ro Khanna, agreed that China's theft of American intellectual property demanded a firm response. 'It is undisputed that they have stolen intellectual property from American manufacturers,' Khanna said. 'We need to stop that.' However, Khanna issued a pointed caution against conflating the actions of the Chinese government with Chinese Americans. 'I am very, very passionate... that as we look at the legitimate threats that Chinese government poses to America's economic independence, we do not in any way conflate it with the harassment of Chinese immigrants, of Chinese Americans, of Chinese students, and we recognise the incredible value and role that they play in the United States,' he said.

Expert Testimony: Espionage Fuelling China's Rise

Former Acting Director of the Defence Intelligence Agency, David Shedd, told lawmakers that Beijing had constructed an extensive apparatus to acquire American technology through cyber espionage, academic collaboration, commercial investments, and intelligence operations. 'The campaign which blends cyber espionage, human intelligence, academic collaboration, and commercial investments has been instrumental in propelling China's rapid economic and military rise,' Shedd said. He argued the campaign had accelerated Chinese advances in artificial intelligence, quantum computing, biotechnology, and telecommunications.

Michael Lucci, founder and chief executive of State Armor, described US states as the 'front lines' of strategic competition with China, citing concerns over land purchases near military installations, influence operations targeting state legislatures, university research partnerships, and cyber threats against local governments.

Civil Rights Concerns Raised

John C. Yang, president and executive director of Asian Americans Advancing Justice, acknowledged that China posed genuine national security challenges but urged lawmakers to pursue evidence-based enforcement rather than ethnicity-linked policies. 'A targeted approach is not necessarily a softer approach,' Yang said. 'Rather, it is a more effective one.' He warned that overly broad measures could deter scientists, students, and entrepreneurs from contributing to the United States while doing little to strengthen actual security.

Broader Congressional Posture

The hearing reflects intensifying bipartisan scrutiny in Washington over Chinese investments, research partnerships, and technology transfers. Congress has progressively tightened restrictions on sensitive exports and critical infrastructure, and the committee's proceedings signal that subnational-level vulnerabilities — long overlooked — are now firmly on the legislative agenda. Closer coordination between federal, state, and local authorities is expected to be a key recommendation in the committee's forthcoming report.