TAMING THE PAPER TIGER: DETERRING CHINESE ECONOMIC CYBER-ESPIONAGE AND REMEDIATING DAMAGE TO U.S. INTERESTS CAUSED BY SUCH ATTACKS.

The United States faces an increasingly complicated set of national security and economic threats. Chief among these are (1) progressively more sophisticated and damaging cyberattacks that threaten national security; harm government institutions, for-profit enterprises (including defense contractors), and institutions of higher learning; and undermine the country's system of property rights; and (2) rising levels of national debt held by foreign competitors. China poses the greatest threat in both regards. China's government carries out, organizes, and/or facilitates cyberattacks to misappropriate intellectual property with serious consequences to the U.S.'s national security and economy. China also has acquired significant holdings in U.S. government-issued debt instruments. Mounting U.S. government debt restricts annual federal government budgetary decisions, negatively affects the U.S.'s international standing as a borrower, and threatens national security by giving foreign debt holders, such as China, potential leverage in foreign relations negotiations. No policy prescription to date has achieved meaningful and lasting success in addressing these threats, and there are indications that the threats are only worsening. The National Trade Secret Protection and Remedy Strategy ("NTSPS") policy prescription proposed by this Article addresses the cyberattack and federal debt threats in a way that links and transforms them from vulnerabilities into leverage to protect the U.S.'s national security, system of property rights, and future economic well-being. Specifically, the U.S, government should pursue trade secret theftrelated litigation and remedies against the Chinese government and its surrogates in U.S. federal courts. The proposed NTSPS would (1) create a specific, limited government property interest in intellectual property developed under government defense contracts; (2) create extra-territorial jurisdiction for the U.S. government and personal jurisdiction over foreign nations that engage in trade secret misappropriation either directly or indirectly through state-supported or enabled entities or persons; and (3) provide for readily available pre-judgment remedies, such as attachment and liens, to secure the government's remedy, and satisfaction of judgments through execution on U.S. debt held instruments held by the misappropriator-in this case, China. Successful implementation of the NTSPS would require amendments to several existing federal statutes and defense-contracting regulations and procedures. Implementing the NTSPS strategy will allow the U.S. federal government to (1) compensate itself and U.S.-based companies for the damages each has suffered as the result of Chinese-led or -sponsored cyberattacks; (2) deter future Chinese cyberattacks by conveying a strong message that the U.S. will take meaningful action in response to said attacks; (3) slow the advancement of Chinese military technology by forcing China to internalize the significant research and development expenses incurred by the U.S. to develop the technological capabilities often targeted by cyber espionage initiatives; (4) significantly reduce U.S. debt and consequently the restrictions and burdens it places on the U.S. economy and national defense capability; and (5) pare down the financial leverage China holds over the U.S. in foreign relations. [ABSTRACT FROM AUTHOR]