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Hello everybody and Gerri Willis the United States and China tonight on the verge of a new high stakes high tech war.
A -- some say we're already losing.
An explosive congressional report a year in the making out today blasting to China's biggest Telecom companies.
Saying they cannot be trusted and should not be doing business in this country.
Two companies walk away and DTE.
Are accused of -- host of illegal activities that include everything from bribery and corruption.
To immigration -- so what does it mean joining me now KT McFarland Fox News national security analyst.
A former deputy sacred assistant secretary of defense.
And China expert Gordon Chang author -- the coming collapse of China.
Well I can't imagine a better panel talk about this topic tonight and Gordon I'm gonna start with you reading you -- some of the results from this report.
Which said this Chinese actors are also the world's most active -- persistent perpetrators -- economic espionage.
US private sector firms and cyber security specialists reported ongoing onslaught of sophisticated computer network intrusions.
That originate in China.
What's the real risk -- or is it all economic damage that were worried about or is there more.
There's a lot just think of while -- in CT -- selling Trojan horses.
Because for more than a decade Beijing has been conducting the world's most extensive cyber espionage and cyber attacking campaign.
They've gone after the White House the Pentagon defense contractors.
Grid operators democracy groups.
And China wants to sell would tell a pop Telecom backbone because if they do that it makes the attacking easier -- like the burglar who sells -- the whole alarm system.
What makes a lot of sense I get that.
I would you hear something Mike Rogers the chairman of the House Intelligence Committee had to say today about this report on -- -- periods.
I argue this though it didn't listen this is this is something we should raise to a bilateral level with China.
They have gone unfettered in this activity for years and all American companies -- -- there's two companies left in America that have intellectual property those that have been hacked.
And know it and those that have been hacked and don't know -- and that's about it.
So apparently everybody's been -- some white Kati and what was interesting about this presentation today.
But the left and the right dams and Republicans on -- -- -- -- a bipartisan.
Important is this threat right now.
What's important to the -- what do you do about it either two things they're doing and why they're hacking into defense industries in this stealing stuff.
It's costing us hundreds of billions of -- -- about the new stealth fighter to develop.
A new submarine they're stealing mad and incensed.
They -- have all of that technology that they put to use this thing they're doing now and -- national why they're doing it.
Is they're getting in and hacking and snooping around all of our computer systems they're looking at the electric grid they're looking at the water supply systems is not -- -- -- -- -- you don't like they're doing it now could they use it it's some kind of warfare situation going forward.
Because at some point the near flat.
As saying with the shut down the election there on the East Coast of the United States Mr.
President so we don't want you to do -- -- saying when we take over Taiwan important.
And his big 2003 blackout in the northeast some people say that it was triggered by a Chinese hacker who made a mistake and by the way fifty Americans died that time.
And also there was a Florida blackout that some people -- to China and I think Kate is actually right they're going after infrastructure backbone in the United States because in a wartime scenario it would be very useful be able to shut down lights.
Or even they would even have to use that they would have to threaten to use it.
Well okay so why wait for its part says hey we are not the bad guys here we're just a company trying to do business in trying to compete on an even playing field in your market.
Let's take a look at this company the they're the world's second largest Telecom gear supplier -- percent of their business is overseas they operate -- 140 countries but only.
3% in the US.
Now IPO I look at this and I and I saw the sixty minutes piece last night -- -- spokesman on saying everything's wonderful on nothing KP and I'm asking you see them as the -- the nexus of everything that threatens this country since -- an -- OK now senator reaction let me just spin out of scenario for -- The East Coast United States Detroit goes dark.
The president of the United States isn't sure why it -- start they think well maybe it was because -- had a heat wave.
The Chinese ambassador comes and says actually that was us would you like this to turn the electricity and in Detroit back -- And we say surely -- but we don't have the critical infrastructure we don't have a couple of key component parts to fix that blown out -- That's real power according is that going to be the next war is that how will be -- Most Chinese colonels have written books about exactly would think she talks about about using all sorts of tactics in wartime scenario and you know -- -- always says well you know we're good company you know our equipment -- but you gotta remember the wild ways now the second largest Telecom equipment provider it didn't exist 25 years ago it was started by a all you know if we look up on the marketplace plus American manufacturers walked away Cisco isn't it a little bit -- you cannot -- all these goods and services.
Just from American company but they took Cisco's technology and that's why they were able to do that and also they got the backing of the Chinese carpet and that's why walk away grew from nothing to be the second largest company in 25 years and they know it is done by this former Chinese colonel in.
How did that happen.
Well that's the big question right the CEO of the company mystery man right we don't really know -- says.
Former military guy no experience in this industry raising more questions -- it's really answering -- and why would we put ourselves at that level of overbuilding you know why do we already are so vulnerable to China.
Where they are as Hillary Clinton years -- -- -- pick a fight with your banker and if we -- them so much money what I would we also -- herself so vulnerable.
Within our entire critical infrastructures -- are defense industry -- China is buying.
Up goods and services and jobs and land and -- you -- lines all over the planet -- born at some point how do you stop.
Well they're gonna stopping themselves and right now they bought too much in the way of commodities and you see the iron ore has been put into green -- And restoring copper and car parts in China because they can't use all they bought you know manufacturing is contracted for eleven straight months in China and the economy is sort of flat lining right now so they've got to -- predicament where they -- -- much too much.
Well and one of the biggest threats to the US economy now is China's economy and.