“Every major company in the United States has already been penetrated by China. My greatest fear is that, rather than having a cyber-Pearl Harbor event, we will instead have this death of a thousand cuts. Where we lose our competitiveness by having all of our research and development stolen by the Chinese. And we never really see the single event that makes us do something about it. That it’s always just below our pain threshold. That company after company in the United States spends millions, hundreds of millions, in some cases billions of dollars on R&D and that information goes free to China….After a while you can’t compete.”

Clarke notes that while the U.S. government is involved in espionage against other governments, it doesn’t hack Chinese companies and then hand over intelligence to their American counterparts. He argues that the same cannot be said for the Chinese government.

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