Posts Tagged Stratfor

Chinese Espionage and French Trade Secrets

Chinese Espionage and French Trade Secrets is republished with permission of STRATFOR.

By Sean Noonan

Paris prosecutor Jean-Claude Marin on Jan. 14 began an inquiry into allegations of commercial espionage carried out against French carmaker Renault. The allegations first became public when Renault suspended three of its employees on Jan. 3 after an internal investigation that began in August 2010. Within days, citing an anonymous French government source, Reuters reported that French intelligence services were looking into the possibility that China played a role in the Renault espionage case. While the French government refused to officially confirm this accusation, speculation has run wild that Chinese state-sponsored spies were stealing electric-vehicle technology from Renault.

The Chinese are well-known perpetrators of industrial espionage and have been caught before in France, but the details that have emerged so far about the Renault operation differ from the usual Chinese method of operation. And much has been learned about this MO just in the last two years across the Atlantic, where the United States has been increasingly aggressive in investigating and prosecuting cases of Chinese espionage. If Chinese intelligence services were indeed responsible for espionage at Renault it would be one of only a few known cases involving non-Chinese nationals and would have involved the largest amount of money since the case of the legendary Larry Wu-Tai Chin, China’s most successful spy.

STRATFOR has previously detailed the Chinese intelligence services and the workings of espionage with Chinese characteristics. A look back at Chinese espionage activities uncovered in the United States in 2010, since our latest report was compiled, can provide more context and detail about current Chinese intelligence operations.

Chinese Espionage in the U.S.

We chose to focus on operations in the United States for two reasons. First, the United States is a major target for Chinese industrial espionage. This is because it is a leader in technology development, particularly in military hardware desired by China’s expanding military, and a potential adversary at the forefront of Chinese defense thinking. Second, while it is not the only country developing major new technologies in which China would be interested, the United States has been the most aggressive in prosecuting espionage cases against Chinese agents, thereby producing available data for us to work with. Since 2008, at least seven cases have been prosecuted each year in the United States against individuals spying for China. Five were prosecuted in 2007. Going back to about 2000, from one to three cases were prosecuted annually, and before that, less than one was prosecuted per year.

Most of the cases involved charges of violating export restrictions or stealing trade secrets rather than the capital crime of stealing state secrets. As the premier agency leading such investigations, the FBI has clearly made a policy decision to refocus on counterintelligence after an overwhelming focus on counterterrorism following 9/11, and its capability to conduct such investigations has grown. In 2010, 11 Chinese espionage cases were prosecuted in the United States, the highest number yet, and they featured a wide range of espionage targets. Read the rest of this entry »

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China’s Military Comes Into Its Own

China’s Military Comes Into Its Own is republished with permission of STRATFOR.

By Rodger Baker

Chinese President Hu Jintao is visiting the United States, perhaps his last state visit as president before China begins its generational leadership transition in 2012. Hu’s visit is being shaped by the ongoing China-U.S. economic dialogue, by concerns surrounding stability on the Korean Peninsula and by rising attention to Chinese defense activity in recent months. For example, China carried out the first reported test flight of its fifth-generation combat fighter prototype, dubbed the J-20, during U.S. Defense Secretary Robert Gates’ visit to China the previous week.

The development and test flight of China’s J-20 is not insignificant, but it is also by no means a game changer in the U.S.-China defense balance. More intriguingly, the test highlights how China’s military increasingly is making its interests heard. Read the rest of this entry »

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Congressional Security and the Tucson Shooting

Congressional Security and the Tucson Shooting is republished with permission of STRATFOR.

By Fred Burton and Sean Noonan

Following the Jan. 8 shooting of U.S. Rep. Gabrielle Giffords, Federal District Judge John McCarthy Roll and 17 others in Tucson, Arizona, discussion has focused on the motivations and ideology of the accused shooter, Jared Loughner. While it was important to make a quick assessment of Loughner’s profile in order to evaluate the possibility of an organized threat, all the available evidence (though not conclusive) indicates that he acted alone.

For the most part, discussion of the event has not touched on a re-evaluation of security for members of Congress. STRATFOR has previously analyzed the issues surrounding presidential security, and while there are common concerns in protecting all branches of government, Congress and the judiciary involve much larger numbers of people — 535 representatives and senators and more than 3,000 federal judges. And members of Congress put a high priority on public accessibility, which makes them more vulnerable.

A common mindset of politicians and their staffers is that better security will limit their accessibility and thus hinder their ability to do their job (and win elections). In fact, there are a number of measures that members of Congress and other public officials can institute for better security without limiting accessibility. While staying in a secure facility would be the safest, it isn’t a realistic option. What is realistic — and effective — is the prudent employment of protective intelligence as well as some measure of physical protection on the move. Read the rest of this entry »

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The Turkish Role in Negotiations with Iran

The Turkish Role in Negotiations with Iran is republished with permission of STRATFOR.

By George Friedman

The P-5+1 talks with Iran will resume Jan. 21-22. For those not tuned into the obscure jargon of the diplomatic world, these are the talks between the five permanent members of the U.N. Security Council (the United States, Britain, France, China and Russia), plus Germany — hence, P-5+1. These six countries will be negotiating with one country, Iran. The meetings will take place in Istanbul under the aegis of yet another country, Turkey. Turkey has said it would only host this meeting, not mediate it. It will be difficult for Turkey to stay in this role.

The Iranians have clearly learned from the North Koreans, who have turned their nuclear program into a framework for entangling five major powers (the United States, China, Japan, Russia, South Korea) into treating North Korea as their diplomatic equal. For North Korea, whose goal since the collapse of the Soviet Union and the absorption of China with international trade has come down to regime survival, being treated as a serious power has been a major diplomatic coup. The mere threat of nuclear weapons development has succeeded in doing that. When you step back and consider that North Korea’s economy is among the most destitute of Third World countries and its nuclear capability is far from proven, getting to be the one being persuaded to talk with five major powers (and frequently refusing and then being coaxed) has been quite an achievement. Read the rest of this entry »

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The Mohammed Cartoon Dust Has Not Settled

The Mohammed Cartoon Dust Has Not Settled is republished with permission of STRATFOR.

By Scott Stewart

When one considers all of the people and places in the West targeted by transnational jihadists over the past few years, iconic targets such as New York’s Times Square, the London Metro and the Eiffel Tower come to mind. There are also certain target sets such as airlines and subways that jihadists focus on more than others. Upon careful reflection, however, it is hard to find any target set that has been more of a magnet for transnational jihadist ire over the past year than the small group of cartoonists and newspapers involved in the Mohammed cartoon controversy.

Every year STRATFOR publishes a forecast of the jihadist movement for the coming year. As we were working on that project for this year, we were struck by the number of plots in 2010 that involved the cartoon controversy — and by the number of those plots that had transnational dimensions, rather than plots that involved only local grassroots operatives. (The 2011 jihadist forecast will be available to STRATFOR members in the coming weeks.)

Groups such as al Qaeda in the Arabian Peninsula (AQAP) have gone to great lengths to keep the topic of the Mohammed cartoons burning in the consciousness of radical Islamists, whether they are lone wolves or part of an organized jihadist group, and those efforts are obviously bearing fruit. Because of this, we anticipate that plots against cartoon-related targets will continue into the foreseeable future. Read the rest of this entry »

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Egypt and the Destruction of Churches: Strategic Implications

Egypt and the Destruction of Churches: Strategic Implications is republished with permission of STRATFOR.

By George Friedman

Over the past few days, Christian churches have been attacked in at least two countries — Nigeria and Egypt — while small packages containing improvised explosive devices were placed on the doorsteps of Christian families in Iraq. Attacks against Christians are not uncommon in the Islamic world, driven by local issues and groups, and it is unclear whether these latest attacks were simply coincidental and do not raise the threat to a new level or whether they indicate the existence of a new, coordinated, international initiative. There is a strong case to be made for the idea that there is nothing new in all of this.

Yet I am struck by the close timing of events in three distant and dispersed countries. Certainly, Egyptian intelligence services are looking for any regional connections (e.g., whether Iraqi operatives recruited the Egyptian bomber). While there have been previous bombings in Egypt, they have focused on tourists, not churches. What is important is this: If the recent attacks are not coincidental, then a coordinated campaign is being conducted against Christian churches that spans at least these countries. And it is a network that has evaded detection by intelligence services.

Obviously, this is speculative. What is clear, however, is that the attack on a church in one country — Egypt — is far from common and was particularly destructive. Egypt has been relatively quiet in terms of terrorism, and there have been few recent attacks on the large Coptic Christian population. The Egyptian government has been effective in ruthlessly suppressing Islamist extremists and has been active in sharing intelligence on terrorism with American, Israeli and other Muslim governments. Its intelligence apparatus has been one of the mainstays of global efforts to limit terrorism as well as keep Egypt’s domestic opposition in check.

Therefore, the attack in Egypt is significant for no other reason than that it happened and represents a failure of Egyptian security. While such failures are inevitable, what made this failure significant was that it occurred in tight sequence with attacks on multiple Christian targets in Iraq and Nigeria and after a threat al Qaeda made last month against Egyptian Copts. This was a warning, which in my mind increases the possibility of coordinated action, but the Egyptians failed to block it. Read the rest of this entry »

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Separating Terror from Terrorism

Separating Terror from Terrorism is republished with permission of STRATFOR.

By Scott Stewart

On Dec. 15, the FBI and the Department of Homeland Security (DHS) sent a joint bulletin to state and local law enforcement agencies expressing their concern that terrorists may attack a large public gathering in a major U.S. metropolitan area during the 2010 holiday season. That concern was echoed by contacts at the FBI and elsewhere who told STRATFOR they were almost certain there was going to be a terrorist attack launched against the United States over Christmas.

Certainly, attacks during the December holiday season are not unusual. There is a history of such attacks, from the bombing of Pan Am Flight 103 on Dec. 21, 1988, and the thwarted millennium attacks in December 1999 and January 2000 to the post-9/11 airliner attacks by shoe bomber Richard Reid on Dec. 22, 2001, and by underwear bomber Umar Farouk Abdulmutallab on Dec. 25, 2009. Some of these plots have even stemmed from the grassroots. In December 2006, Derrick Shareef was arrested while planning an attack he hoped to launch against an Illinois shopping mall on Dec. 22.

Mass gatherings in large metropolitan areas have also been repeatedly targeted by jihadist groups and lone wolves. In addition to past attacks and plots directed against the subway systems in major cities such as Madrid, London, New York and Washington, 2010 saw failed attacks against the crowds in New York’s Times Square on May 1 and in Pioneer Courthouse Square in downtown Portland, Ore., on Nov. 26. Read the rest of this entry »

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Making Sense of the START Debate

Making Sense of the START Debate is republished with permission of STRATFOR.

By George Friedman

Last week, the U.S. Senate gave its advice and consent to the New Strategic Arms Reduction Treaty (New START), which had been signed in April. The Russian legislature still has to provide final approval of the treaty, but it is likely to do so, and therefore a New START is set to go into force. That leaves two questions to discuss. First, what exactly have the two sides agreed to and, second, what does it mean? Let’s begin with the first.

The original START was signed July 31, 1991, and reductions were completed in 2001. The treaty put a cap on the number of nuclear warheads that could be deployed. In addition to limiting the number of land- and submarine-based intercontinental ballistic missiles (ICBMs) and strategic bombers, it capped the number of warheads that were available to launch at 6,000. The fact that this is a staggering number of nuclear weapons should give you some idea of the staggering number in existence prior to START. START I lapsed in 2009, and the new treaty is essentially designed to reinstate it.

It is important to remember that Ronald Reagan first proposed START. His initial proposal focused on reducing the number of ICBMs. Given that the Soviets did not have an effective intercontinental bomber force and the United States had a massive B-52 force and follow-on bombers in the works, the treaty he proposed would have decreased the Soviet quantitative advantage in missile-based systems without meaningfully reducing the U.S. advantage in bombers. The Soviets, of course, objected, and a more balanced treaty emerged.

What is striking is that START was signed just before the Soviet Union collapsed and implemented long after it was gone. It derived from the political realities that existed during the early 1980s. One of the things the signers of both the original START and the New START have ignored is that nuclear weapons by themselves are not the issue. The issue is the geopolitical relationship between the two powers. The number of weapons may affect budgetary considerations and theoretical targeting metrics, but the danger of nuclear war does not derive from the number of weapons but from the political relationship between nations. Read the rest of this entry »

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China and its Double-edged Cyber-sword

China and its Double-edged Cyber-sword is republished with permission of STRATFOR.

By Sean Noonan

A recent batch of WikiLeaks cables led Der Spiegel and The New York Times to print front-page stories on China’s cyber-espionage capabilities Dec. 4 and 5. While China’s offensive capabilities on the Internet are widely recognized, the country is discovering the other edge of the sword.

China is no doubt facing a paradox as it tries to manipulate and confront the growing capabilities of Internet users. Recent arrests of Chinese hackers and People’s Liberation Army (PLA) pronouncements suggest that China fears that its own computer experts, nationalist hackers and social media could turn against the government. While the exact cause of Beijing’s new focus on network security is unclear, it comes at a time when other countries are developing their own defenses against cyber attacks and hot topics like Stuxnet and WikiLeaks are generating new concerns about Internet security.

One of the U.S. State Department cables released by WikiLeaks focuses on the Chinese-based cyber attack on Google’s servers that became public in January 2010. According to a State Department source mentioned in one of the cables, Li Changchun, the fifth highest-ranking member of the Communist Party of China (CPC) and head of the Party’s Propaganda Department, was concerned about the information he could find on himself through Google’s search engine. He also reportedly ordered the attack on Google. This is single-source information, and since the cables WikiLeaks released do not include the U.S. intelligence community’s actual analysis of the source, we cannot vouch for its accuracy. What it does appear to verify, however, is that Beijing is regularly debating the opportunities and threats presented by the Internet. Read the rest of this entry »

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Attacks on Nuclear Scientists in Tehran

Attacks on Nuclear Scientists in Tehran is republished with permission of STRATFOR.

By Ben West

On the morning of Nov. 29, two Iranian scientists involved in Iran’s nuclear development program were attacked. One was killed, and the other was injured. According to Iranian media, the deceased, Dr. Majid Shahriari, was heading the team responsible for developing the technology to design a nuclear reactor core, and Time magazine referred to him as the highest-ranking non-appointed individual working on the project.

Official reports indicate that Shahriari was killed when assailants on motorcycles attached a “sticky bomb” to his vehicle and detonated it seconds later. However, the Time magazine report says that an explosive device concealed inside the car detonated and killed him. Shahriari’s driver and wife, both of whom were in the car at the time, were injured.

Meanwhile, on the opposite side of town, Dr. Fereidoon Abassi was injured in a sticky-bomb attack reportedly identical to the one officials said killed Shahriari. His wife was accompanying him and was also injured (some reports indicate that a driver was also in the car at the time of the attack). Abassi and his wife are said to be in stable condition. Abassi is perhaps even more closely linked to Iran’s nuclear program than Shahriari was, since he was a member of the elite Iranian Revolutionary Guard Corps and was named in a 2007 U.N. resolution that sanctioned high-ranking members of Iran’s defense and military agencies believed to be trying to obtain nuclear weapons. Read the rest of this entry »

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North Korean Artillery Attack on a Southern Island

This is republished with permission of STRATFOR

RED ALERT

North Korea and South Korea have reportedly traded artillery fire Nov. 23 across the disputed Northern Limit Line (NLL) in the Yellow Sea to the west of the peninsula. Though details are still sketchy, South Korean news reports indicate that around 2:30 p.m. local time, North Korean artillery shells began landing in the waters around Yeonpyeongdo, one of the South Korean-controlled islands just south of the NLL. North Korea has reportedly fired as many as 200 rounds, some of which struck the island, injuring at least 10 South Korean soldiers, damaging buildings and setting fire to a mountainside. South Korea responded by firing some 80 shells of its own toward North Korea, dispatching F-16 fighter jets to the area and raising the military alert to its highest level.

South Korean President Lee Myung Bak has convened an emergency Cabinet meeting, and Seoul is determining whether to evacuate South Koreans working at inter-Korean facilities in North Korea. The barrage from North Korea was continuing at 4 p.m. Military activity appears to be ongoing at this point, and the South Korean Joint Chiefs of Staff are meeting on the issue. No doubt North Korea’s leadership is also convening. Read the rest of this entry »

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Pakistan and the Maoist Movement in India

Pakistan and the Naxalite Movement in India is republished with permission of STRATFOR.

By Ben West

Indian Maoist militants, known as Naxalites, have been meeting with members of the outlawed Pakistani militant group Lashkar-e-Taiba (LeT), according to the director-general of police for India’s Chhattisgarh state. Based on information from a police source, state police chief Vishwa Ranjan said Nov. 11 that two LeT operatives attended a Naxalite meeting in April or May. While their presence at the meeting still needs to be corroborated, the chief said, it appears very likely that the Naxalites held the meeting to adopt a new policy and plans for increasing “armed resistance” in order to seize political power in India.

Indian authorities are using the alleged meeting between LeT operatives and Naxalites as evidence that Pakistan is trying to forge relationships with the Naxalites, which India has long suspected. India blamed the LeT for the 2008 Mumbai attacks and the 2001 parliament attack. For the Indian public, LeT also has become synonymous with Pakistani intelligence operations. The group that Indian officials refer to as “LeT,” however, is no longer an ally of Pakistan and has changed so much in recent years that we have started to refer to it and similar groups as “neo-LeT”. Read the rest of this entry »

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Al Qaeda Unlucky Again in Cargo Bombing Attempt

Al Qaeda Unlucky Again in Cargo Bombing Attempt is republished with permission of STRATFOR.

By Scott Stewart

The Oct. 29 discovery of improvised explosive devices (IEDs) inside two packages shipped from Yemen launched a widespread search for other devices, and more than two dozen suspect packages have been tracked down so far. Some have been trailed in dramatic fashion, as when two U.S. F-15 fighter aircraft escorted an Emirates Air passenger jet Oct. 29 as it approached and landed at John F. Kennedy International Airport in New York. To date, however, no other parcels have been found to contain explosive devices.

The two parcels that did contain IEDs were found in East Midlands, England, and Dubai, United Arab Emirates, and both appear to have been sent by al Qaeda in the Arabian Peninsula (AQAP), al Qaeda’s jihadist franchise in Yemen. As we’ve long discussed, AQAP has demonstrated a degree of creativity in planning its attacks and an intent to attack the United States. It has also demonstrated the intent to attack aircraft, as evidenced by the failed Christmas Day bombing in 2009 involving Umar Farouk Abdulmutallab, who tried to detonate an explosive device concealed in his underwear on a flight from Amsterdam to Detroit.

A tactical analysis of the latest attempt suggests that the operation was not quite as creative as past attempts, though it did come very close to achieving its primary objective, which in this case (apparently) was to destroy aircraft. It does not appear that the devices ultimately were intended to be part of an attack against the Jewish institutions in the United States to which the parcels were addressed. Although the operation failed in its primary mission (taking down aircraft) it was successful in its secondary mission, which was to generate worldwide media coverage and sow fear and disruption in the West. Read the rest of this entry »

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WikiLeaks and the Culture of Classification

WikiLeaks and the Culture of Classification is republished with permission of STRATFOR.

By Scott Stewart

On Friday, Oct. 22, the organization known as WikiLeaks published a cache of 391,832 classified documents on its website. The documents are mostly field reports filed by U.S. military forces in Iraq from January 2004 to December 2009 (the months of May 2004 and March 2009 are missing). The bulk of the documents (379,565, or about 97 percent) were classified at the secret level, with 204 classified at the lower confidential level. The remaining 12,062 documents were either unclassified or bore no classification.

This large batch of documents is believed to have been released by Pfc. Bradley Manning, who was arrested in May 2010 by the U.S. Army Criminal Investigations Command and charged with transferring thousands of classified documents onto his personal computer and then transmitting them to an unauthorized person. Manning is also alleged to have been the source of the classified information released by WikiLeaks pertaining to the war in Afghanistan in July 2010.

WikiLeaks released the Iraq war documents, as it did the Afghanistan war documents, to a number of news outlets for analysis several weeks in advance of their formal public release. These news organizations included The New York Times, Der Spiegel, The Guardian and Al Jazeera, each of which released special reports to coincide with the formal release of the documents Oct. 22. Read the rest of this entry »

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U.S. Midterm Elections, Obama and Iran

U.S. Midterm Elections, Obama and Iran is republished with permission of STRATFOR.

By George Friedman

We are a week away from the 2010 U.S. midterm elections. The outcome is already locked in. Whether the Republicans take the House or the Senate is close to immaterial. It is almost certain that the dynamics of American domestic politics will change. The Democrats will lose their ability to impose cloture in the Senate and thereby shut off debate. Whether they lose the House or not, the Democrats will lose the ability to pass legislation at the will of the House Democratic leadership. The large majority held by the Democrats will be gone, and party discipline will not be strong enough (it never is) to prevent some defections.

Should the Republicans win an overwhelming victory in both houses next week, they will still not have the votes to override presidential vetoes. Therefore they will not be able to legislate unilaterally, and if any legislation is to be passed it will have to be the result of negotiations between the president and the Republican Congressional leadership. Thus, whether the Democrats do better than expected or the Republicans win a massive victory, the practical result will be the same.

When we consider the difficulties President Barack Obama had passing his health care legislation, even with powerful majorities in both houses, it is clear that he will not be able to push through any significant legislation without Republican agreement. The result will either be gridlock or a very different legislative agenda than we have seen in the first two years. Read the rest of this entry »

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