The People’s Republic of China (PRC) is executing a long-term, cyber-enabled economic campaign designed to capture and control key strategic industries. The campaign is more than just the theft of intellectual property or cyber espionage. According to recent testimony provided to the U.S.-China Economic and Security Review Commission, it is a “centrally controlled national strategy designed to achieve economic, military, and diplomatic superiority”—a form of “unrestricted warfare.”2
Among the strategic industries targeted by the PRC, several are critical to the U.S. Navy. These include the semiconductor and associated industries, the undersea cable industry, and maritime shipbuilding. If the PRC is able to gain effective control of these sectors, it will have significant political, economic, and military leverage over the United States and its allies, and the ability of the Navy to execute its core functions will be in doubt.