Joni Ernst: The ultimate beneficiary of…


Washington spends billions of your tax dollars each year to achieve hypothetical technological dominance over communist China, but the ultimate beneficiary of this effort may well be the CCP.

This is the shocking conclusion of a Department of Defense (DoD) exam which revealed that China was stealing technology developed in the United States by exploiting the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The report explicitly states: “China, not the United States, is the ultimate beneficiary of the DoD and other [U. S. Government] investments in research.

Here’s how it works: American companies receiving taxpayer assistance for technology development from the DoD and other agencies are recruited by China to continue their work at institutions associated with China’s military, the People’s Liberation Army. The American company is then dissolved and the research and intellectual property paid for with American taxpayers’ money are transferred to a subsidiary in China.

Just like that, American ingenuity is shipped overseas to our main adversary, and we, the American taxpayers, fund it!

This is not just another case of intellectual property theft. According to the Pentagon, this ongoing program has national and economic security implications.

A researcher and the co-founders of a now-dissolved company that received four grants to develop technologies for spacecraft and drones, for example, are said to have been recruited by the Chinese government and now work for institutions affiliated with the defense agency of the communist regime.

Tens of millions of your tax dollars have been spent on the development of other technologies, including broadband, biohazard detectors, solar energy, military device design and pharmaceuticals, all of which have were transferred to China.

In an effort to end this madness, I gave my September 2022 Squeal Award to all the government agencies that have allowed these two-way companies to take your money and run off to China with the breakthroughs that rightfully belong to the United States

I also introduced bipartisan legislation, which was swiftly passed unanimously by the Senate last week and the House just yesterday, that will require government agencies to conduct background checks on companies seeking federal support while by having ties with foreign countries of concern such as China. The bill allows agencies to recover taxpayers’ money from any company deemed a risk to the national security of the United States. And I’m delighted to report that this bill was signed into law by the President today.

No matter how much money Washington spends to “win” the global tech race, we will never win by abandoning made-in-USA innovation and subsidizing our adversaries. This cycle will continue until these subsidy programs are both required and empowered to hold unscrupulous recipients of taxpayer funds accountable for selling to China. Fortunately, the new law that I helped make will put an end to this cycle!

Click on here or on the image above for an official portrait of Senator Ernst.



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