The FBI Director, Christopher Wray, on Tuesday, warned that “communist cells” are influencing companies in China, posing a significant risk to U.S. firms operating in the country, CNBC reports.
What Happened: Wray, in his testimony before the Senate Judiciary Committee, stated that the Xi Jinping‘s Chinese Communist Party (CCP) is using these cells to exert influence and control over U.S. and other foreign companies operating in China.
"There is no country, none, that presents a broader, more comprehensive threat to our ideas our innovation our economic security than the Chinese government and the Chinese Communist Party," Wray testified.
"In many ways, it represents, I think, the defining threat of our era," he said.
The FBI Director’s comments come amid increasing concerns over China’s influence on global businesses and its potential implications for national security.
Wray further explained that these cells, often composed of company employees, are used to advance the interests of the CCP within the company. This includes influencing decisions related to technology, data, and intellectual property.
See Also: China’s Interested In International AI Framework On Regulations, Says Elon Musk
Why It Matters: The FBI Director’s comments highlight the growing concerns over China’s influence on global businesses and its potential implications for national security. China’s restrictions on semiconductor metals and the Biden administration’s ban on cloud computing have put several companies in the line of fire.
Moreover, U.S. spies have sounded the alarm on the risks of engaging in business with China, warning of potential espionage and intellectual property theft. The influence of the CCP on companies operating in China adds another layer of risk for foreign firms, particularly those in high-tech industries.
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