DOJ: US Soldier Sold Classified Docs to China
Kritenbrink briefs on East Asia trip, National People's Congress sets economic goals, policy agenda in Beijing
A US Army intelligence analyst was arrested March 7 at Fort Campbell on espionage charges for allegedly selling “an abundance” of military secrets to a Chinese agent.
Korbein Schultz, a sergeant, allegedly downloaded and sold defense documents to an unnamed “Conspirator A” purportedly residing in Hong Kong, according to the US Department of Justice.
Schultz’s job in the 506th Infantry Battalion involved developing mission analysis for commanders, gathering information on, and assessing Chinese capabilities.
Beginning in mid-2022, Schultz sold information on the US’s F22A Raptor fighter aircraft, the HH-60W combat rescue helicopter, the HIMARS tactical missile launcher system, the THAAD missile defense system and intercontinental ballistic missiles, according to the US indictment.
“Specifically, Conspirator A tasked Schultz with gathering information related to … the United States’ potential plans in the event that Taiwan came under military attack,” the DOJ said in a press release.
Schultz allegedly used his access to classified US computer systems to download documents related to China and its military tactics, the US Indo-Pacific Command, and Navy and Marine Corps exercises in the region.
According to investigators, Schultz’s Chinese handler suggested meeting Schultz at an overseas Formula 1 race to make him a “senior partner” with a “big signing bonus.” To which Schultz replied, “Oh Snap!” Over the course of 15 months, Schultz allegedly received $42,000 in exchange for classified documents.
The Chinese agent asked Schultz to provide information on US lessons from Russia's war with Ukraine, and what those meant for US plans to defend Taiwan from attack. The agent was also seeking information on US hypersonic equipment, aerial missile defense systems, military satellites, and US forces in Korea.
Kritenbrink briefs on East Asia trip
The US is talking to East Asian nations about North Korea’s nuclear missile development, China’s aggression in the South China Sea and naval presence in Cambodia, as well as the humanitarian crisis in Myanmar, Assistant Secretary of State Daniel Kritenbrink said in a briefing on March 7 summarizing his recent trip to East Asia.
“Despite the many global challenges that we collectively face, the United States remains squarely focused on the Indo-Pacific region,” Kritenbrink said.
“Our top priority remains investing in the collective capacity of our allies, partners, and friends. And I think we’ve made tremendous progress in advancing that strategy, especially in Southeast Asia.”
China’s actions in the South China Sea “run counter to international law” and “utilize coercion to intimidate partners in ways that we find deeply unacceptable and destabilizing,” Kritenbrink said.
In Cambodia, the US and other nations in Southeast Asia are expressing concerns about “the intent, the nature, and the scope of construction at Ream Naval Base as well as the role that the PRC military is playing in this process and in the future use of the facility,” he said.
Kritenbrink cited $317 million in US assistance for refugees from Myanmar that is being provided largely through the government of Thailand which has opened a humanitarian corridor. The United Nations has estimated some 2.6 million people have been displaced by armed conflict inside Myanmar following the 2021 military coups.
National People’s Congress
China held its annual National People’s Congress meeting in Beijing this week, adopting an economic growth target of 5 percent for 2024 and a series of measures to boost its flagging economy.
"Risks and potential dangers in real estate, local government debt, and small and medium financial institutions were acute in some areas," Premier Li Qiang said in remarks at the start of the meetings on March 5. "Under these circumstances, we faced considerably more dilemmas in making policy decisions and doing our work."
Beijing plans to issue about $139 billion (1 trillion yuan) in long-term bonds over the next several years to spend on “major national strategies” and fortify security “in key areas,” Li said, according to The Associated Press.
The government plans a “new development model” to include building government-subsidized housing, Li said suggesting plans buying up unoccupied apartment buildings for conversion to affordable housing.
Western economists and investors view the 5 percent benchmark as optimistic and perhaps unrealistic as China’s economy continues to grow at a slow pace following the COVID pandemic and amid continuing disinvestment by foreign investors.
Goldman Sachs Group’s Chief Investment Officer Sharmin Mossavar-Rahmani recently said the firm is advising clients to avoid China.
“All our clients are asking us that question — given how cheap China appears, people inevitably say, well, has it discounted the worst news?” Mossavar-Rahmani told Bloomberg on March 4. “Our view is that one should not invest in China.”
China will struggle with weakness in property markets, infrastructure spending and exports over the next decade, she said. A lack of clarity on China’s policymaking and unreliable economic data add to concerns.
Xi urges military development
President Xi Jinping called on China's military to improve its strategic capabilities in emerging spheres, during a meeting March 7 with delegates to the People’s Congress from the nation's armed forces, state-run Xinhua reported.
“Xi said China's drive to accelerate the development of new quality productive forces has provided rare opportunities for the development of strategic capabilities in emerging areas.
“He called for enabling new quality productive forces and new quality combat capabilities to effectively integrate with and boost each other.
“Xi urged efforts to coordinate maritime military preparedness, maritime rights and interests protection and marine economy development.
“He called for optimizing aerospace layout to promote China's aerospace system development, and building cyberspace defense system to enhance the ability to safeguard national cybersecurity.”
The government announced a 7.2 percent increase in its defense budget of 1.6 trillion yuan ($222 billion), roughly mirroring last year’s rise, according to the AP. Actual spending is believed to be higher, according to US analysts. China ranks second in the world in military spending behind only the United States.
General He Weidong, the second-ranked vice-chairman of the Central Military Commission, vowed to crack down on “fake combat capabilities” in China’s military, according to minutes of the delegates meeting provided to media outlets in Beijing.
He’s remarks are likely related to weapons procurement, which has been the focus of corruption investigations, and follow a leadership shake-up in the People’s Liberation Army, according to experts cited by the South China Morning Post.
— William Roberts