Pentagon Locks Down U.S. Research as China Espionage Fears Surge

United States Department of War

WASHINGTON, D.C. — The U.S. Department of War on Thursday unveiled a sweeping crackdown on foreign influence in federally funded research, moving to block Chinese military-linked firms from receiving taxpayer dollars and creating new surveillance and enforcement systems to protect America’s scientific edge.

Under Secretary of War for Research and Engineering Emil Michael announced the rollout of the Department’s new Fundamental Research Security Initiatives and Implementation memorandum, a framework designed to shield Defense-funded research from intellectual property theft, covert foreign control, and exploitation by hostile governments.

“The War Department is intensifying its efforts to safeguard taxpayer-funded research and is upholding the integrity of America’s scientific community,” Michael said.

At the center of the policy is an outright ban on providing fundamental research funding to any company listed under Section 1260H of the National Defense Authorization Act — a federal designation that identifies Chinese military companies operating inside the United States.

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The new policy also establishes a department-wide Fundamental Research Risk Review Repository, a centralized system designed to collect, share, and analyze risk data across all components of the War Department’s sprawling research enterprise. Officials said the system will allow analysts to spot suspicious funding patterns, undisclosed foreign ties, and emerging security threats more quickly.

In addition, the department will deploy automated vetting and continuous monitoring tools where possible to flag foreign influence risks in real time. Those systems will be paired with expanded annual spot checks of research awards, standardized disclosure of foreign financial support, and enhanced training for research security personnel.

The measures were developed in close coordination with congressional oversight bodies, including the House and Senate Armed Services Committees, the Appropriations Committees, and the House Select Committee on the Chinese Communist Party, reflecting rising bipartisan alarm over Beijing’s efforts to acquire U.S. technology through academic and commercial research channels.

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Officials said the new framework will allow the department to more aggressively enforce compliance rules, investigate suspicious research partnerships, and shut down vulnerabilities before they can be exploited.

Through the initiative, the War Department aims to “better anticipate emerging threats, adapt to evolving adversarial tactics, and maintain America’s position as a global leader in innovation and research,” according to the memorandum.

With U.S. defense laboratories, universities, and private firms locked in an accelerating global technology race, the administration says the new controls are designed to ensure that breakthroughs funded by American taxpayers do not end up strengthening America’s adversaries — and that the country’s warfighters retain what the department called “the most lethal force on earth.”

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