Nicole Perlroth

Now, here I should step back and note there had been government efforts, serious efforts, to rein in Chinese IP theft before. Long before Aurora, even before the dawn of the commercial internet really, the first Bush administration had put China on notice.

Now, here I should step back and note there had been government efforts, serious efforts, to rein in Chinese IP theft before. Long before Aurora, even before the dawn of the commercial internet really, the first Bush administration had put China on notice.

That was Matt Turpin, who served as China director at the National Security Council in Trump's first administration. And before that, as China advisor to the chairman of the Joint Chiefs of Staff under Obama. For those not well-versed in the minutiae of trade law, the Section 301 investigation is the first step in imposing tariffs that would have penalized China for its blatant IP theft.

That was Matt Turpin, who served as China director at the National Security Council in Trump's first administration. And before that, as China advisor to the chairman of the Joint Chiefs of Staff under Obama. For those not well-versed in the minutiae of trade law, the Section 301 investigation is the first step in imposing tariffs that would have penalized China for its blatant IP theft.

And this was a big deal at the time. But when it came down to actually enforcing anything, that was another story.

And this was a big deal at the time. But when it came down to actually enforcing anything, that was another story.

Every time the Bush and Clinton administrations debated actual penalties in the form of tariffs or sanctions, there were always people in the room who'd argue back. It'd be better to kick the can down the road. American businesses were making too much money in China to disrupt the status quo. And back then, policymakers still held out hope for a new China.

Every time the Bush and Clinton administrations debated actual penalties in the form of tariffs or sanctions, there were always people in the room who'd argue back. It'd be better to kick the can down the road. American businesses were making too much money in China to disrupt the status quo. And back then, policymakers still held out hope for a new China.

That once they acquired a certain level of wealth and economic maturity, once the internet took hold, China would cut out the bad behavior, stop stealing RIP, lay off the internet crackdowns, and inevitably democratize. This late 90s, early 2000s optimism was perhaps best summed up by this guy.

That once they acquired a certain level of wealth and economic maturity, once the internet took hold, China would cut out the bad behavior, stop stealing RIP, lay off the internet crackdowns, and inevitably democratize. This late 90s, early 2000s optimism was perhaps best summed up by this guy.

These days, that sounds pretty naive. But back then, to be fair, all signs were pointing that way.

These days, that sounds pretty naive. But back then, to be fair, all signs were pointing that way.

Here's Jim Lewis, who was involved in some of these internal deliberations at the time.

Here's Jim Lewis, who was involved in some of these internal deliberations at the time.

The intelligence community watched as US businesses hemorrhaged IP, fighter jets, passenger planes, solar panels, DuPont's genetically modified seeds, turbines, oil and gas tech and exploration strategies, electric vehicles. Coca-Cola, which paid $4 billion for vitamin water in 2007, watched its Chinese market share plummet overnight, ousted by Nongfu's victory vitamin water. Entire U.S.

The intelligence community watched as US businesses hemorrhaged IP, fighter jets, passenger planes, solar panels, DuPont's genetically modified seeds, turbines, oil and gas tech and exploration strategies, electric vehicles. Coca-Cola, which paid $4 billion for vitamin water in 2007, watched its Chinese market share plummet overnight, ousted by Nongfu's victory vitamin water. Entire U.S.

product lines were vanishing. And by 2013, there was this growing sense of urgency that government could no longer let the private sector fend for itself. It simply wasn't a fair fight.

product lines were vanishing. And by 2013, there was this growing sense of urgency that government could no longer let the private sector fend for itself. It simply wasn't a fair fight.

That was John Carlin, who led the Justice Department's 2014 indictments of the PLA members who'd hacked us at the New York Times. And here's Jim Lewis again.

That was John Carlin, who led the Justice Department's 2014 indictments of the PLA members who'd hacked us at the New York Times. And here's Jim Lewis again.