Capitalism's Double-Edged Sword: How Foreign Nations and U.S. Corporations Circumvent Export Rules and Regulations and the Dilemmas We Face to Make Change

This Master's research paper focuses on three case studies demonstrating how foreign nations illegally exported technologies, exploited capitalistic values, and used recruitment programs to access sensitive technologies and programs for their military gain. Furthermore, a lack of criminal prosecutions by the Department of Justice, combined with this exploitation, illustrates the loss of deterrence and critical technologies to our adversaries. After acquiring U.S. companies, foreign nations illegally export technologies, often shutting down U.S. factories which results in losses to domestic production. Meanwhile, United States companies violate export restrictions by providing expertise on dual-use technologies when it is in their best interest. They may or may not report the assistance to the United States Government afterward. Further, the Peoples Republic of China uses recruitment programs, like 1,000 Grains of Sand and 1,000 Talents Plan, to gain access to sensitive technologies, research, and subject matter experts. Left unchanged, these vulnerabilities will continue to allow our adversaries to access sensitive military technologies, subject matter experts, and dual-use technologies, ultimately threatening the United States' technological advantage on the battlefield. This research examines three bodies of literature on how foreign nations acquire sensitive technologies from the United States. The first is the study of how, after the acquisition of the United States company, foreign owners illegally export technologies. The second examines how capitalistic values lead U.S. corporations to illegally provide expertise to foreign nations, violating U.S. export laws. The third body of literature focuses on how the Peoples Republic of China steals U.S. military technology through the 1,000 Grains of Sand and 1,000 Talents Plan. Alone, each of these is necessary but insufficient. However, together, they result in significant military gain for foreign militaries.