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         Pentagon: Espionage Fuels China's Fast-paced Military Buildup

   by Reuters

   China is using state-sponsored industrial espionage to acquire the
   technology it needs to forge ahead with a fast-paced military
   modernization program and cut its reliance on foreign arms makers, the
   Pentagon said in a new report on Monday.
   "China continues to leverage foreign investments, commercial joint
   ventures, academic exchanges, the experience of repatriated Chinese
   students and researchers, and state-sponsored industrial and technical
   espionage to increase the level of technologies and expertise available
   to support military research, development, and acquisition," the U.S.
   Defense Department said.
   The department, in its 83-page annual report to Congress on Chinese
   military developments, said Beijing's publicly announced defense
   spending grew at an inflation-adjusted pace of nearly 10 percent
   annually over the past decade, but its actual outlays could be much
   higher.
   China announced a 10.7 percent increase in military spending to $114
   billion in March, the Pentagon report said. But it estimated that
   China's actual spending for 2012 could range between $135 billion and
   $215 billion. U.S. defense spending is more than double that at over
   $500 billion.
   "China continues to engage in activities designed to support military
   procurement and modernization," the report said. "These include
   economic espionage, theft of trade secrets, export control violations,
   and technology transfer."
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References

   1. http://www.voanews.com/content/pentagon-espionage-fuels-china-fast-paced-military-buildup/1655673.html