US intelligence warns that China may try to influence state leaders

China exploits the nature of the United States federal system to influence local and state leaders, contends an advisory by the US National Counterintelligence and Security Centre (NCSC) released on Wednesday.

The bulletin - a warning essentially, against a backdrop of tension between the two big powers - stated: "The PRC (People's Republic of China) understands US state and local leaders enjoy a degree of independence from Washington and may seek to use them as proxies to advocate for national US policies Beijing desires."

Such moves could include improved US economic cooperation with China, or reduced US criticism of China, said the bulletin posted on the NCSC website.

China and the Communist Party of China continue to seek to influence Washington directly, but have stepped up efforts to cultivate America's state and local leaders as "an effective way to pursue agendas that might be more challenging at the national level", the advisory said.

It warned: "By their nature, these efforts can have a corrosive effect on targeted societies. They can also threaten the integrity of the US policymaking process and interfere in how US civil, economic and political life functions."

Influence operations work through exploiting partnerships and creating dependencies with "seemingly benign business opportunities or people-to-people exchanges sometimes masking PRC political agendas".

"Financial incentives may be used to hook US state and local leaders, given their focus on local economic issues," the advisory warned. "In some cases, the PRC or its proxies may press state and local leaders to take actions that align with their local needs, but also advance PRC agendas, sometimes over national US interests."

The report advised state leaders, agencies and corporations to be vigilant when engaging with foreign entities.

"Understand that there is no such thing as a 'free lunch'. While partnerships or engagements with China or other foreign nations can bring economic, academic and cultural benefits to US state and local communities, there may be strings attached."

But the brief also made the point that the "threat of exploitation emanates... not (from) the people of China generally and not Chinese Americans, who themselves are often victimised by PRC aggression".

There was no immediate response from China's government to the US bulletin.

The concerns listed in the bulletin are not entirely new. In 2020, FBI director Christopher Wray said in a speech that Beijing "is engaged in a highly sophisticated malign foreign influence campaign".

There have been cases of Chinese espionage uncovered in California. In one such case from around 2011 to 2015, a suspected Chinese spy, Ms Fang Fang, targeted up-and-coming politicians in the Bay Area in particular, including Democrat Congressman Eric Swalwell. Ms Fang, who was reportedly being watched by the FBI, left for China in 2015 and has apparently never returned.