Pentagon reportedly plans covert spy network posing as business people to target China
In short
The Washington Post reported on the 21st (local time) that the US Defense Department is working on a covert intelligence network of agents posing as business people or private-sector workers, to wage economic war on China and other rivals. The plan is at an early stage, and Pentagon deputy spokesman Jacob Bliss denied the report.
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The US Defense Department is working on a new covert intelligence network to support economic warfare against China and other rivals, the Washington Post reported on the 21st, local time. Dong-A Ilbo said the newspaper cited six people familiar with the matter. The central element is non-official cover (NOC) agents, who pose as business people or private-sector workers and show no official link to the US government. [ 1 , 2 , 3 ]
Yonhap and Dong-A Ilbo said such agents cannot claim diplomatic immunity if arrested abroad. Yonhap added that they cannot use US embassies or government facilities, and that their work is counted among the riskiest intelligence missions. [ 1 , 2 ]
The programme is reported to be led by Tom Rakusan (톰 라쿠산), a senior adviser to Deputy Defense Secretary Steve Feinberg who served 39 years at the CIA. Dong-A Ilbo and Newsis said he became the CIA's deputy director for operations in 2017 and led the agency's response to Russian interference in the 2016 US election. After retiring in 2021 he joined Cerberus Capital Management, the private equity firm Feinberg co-founded, and later moved to the Pentagon. Newsis said military branches, Pentagon intelligence and security staff and retired CIA officials have been brought in. [ 1 , 3 ]
The plan is still at the planning stage and no operations have begun. Whether it will be a separate new unit or an expansion of existing Pentagon covert intelligence capabilities has not been decided. [ 1 , 2 , 3 ]
Pentagon deputy spokesman Jacob Bliss denied the report. He said the query appeared to be based on information that was not true, according to Yonhap and Dong-A Ilbo. Dong-A Ilbo quoted him as saying that the people who supplied the information were either seriously mistaken or deliberately spreading false information. [ 1 , 2 , 3 ]
The Pentagon already runs an open economic-warfare effort. Feinberg announced an Economic Defense Unit (EDU) this year to deter and disrupt adversaries by economic means. Dong-A Ilbo and Newsis said the unit put $750 million of Pentagon funds toward securing a major rare-earth deposit in Brazil. [ 1 , 2 , 3 ]
Not everyone is enthusiastic. A former senior CIA official said Rakusan wants to build his own CIA inside the Defense Department. Yonhap said the CIA's covert agent ranks have been thinning because many are retiring without enough replacements. Dong-A Ilbo added that earlier US military agents posing as mining company staff in Africa nearly had their cover blown for lack of expertise, and that biometric and digital tracking make concealing identity harder. [ 1 , 2 , 3 ]
Why it matters
If the report is accurate, the Defense Department would move into human intelligence collection, an area the outlets describe as traditionally the CIA's. The outlets also note friction with former CIA officials and the risks agents without diplomatic cover would carry.
Key facts
- The Washington Post, citing sources, reported on the 21st (local time) that the US Defense Department is pursuing a new covert intelligence network for economic warfare against China and other rivals. [ 1 , 2 , 3 ]
- The plan centres on non-official cover (NOC) agents who pose as business people or private-sector workers without visible links to the US government. [ 1 , 2 , 3 ]
- Tom Rakusan (톰 라쿠산), a senior adviser to Deputy Defense Secretary Steve Feinberg who served 39 years at the CIA, is reported to be leading the programme. [ 1 , 2 , 3 ]
- The plan is still at the planning stage; whether it becomes a new unit or expands existing Pentagon capabilities has not been decided. [ 1 , 2 , 3 ]
- Deputy Pentagon spokesman Jacob Bliss said the query appeared to be based on information that was not true. [ 1 , 2 , 3 ]
- A former senior CIA official said: "Rakusan is trying to build his own CIA inside the Defense Department." [ 1 , 2 , 3 ]
Confirmed by several sources
- The Washington Post reported that the Defense Department is working on a covert network of undercover agents to support economic warfare against China and other rivals. [ 1 , 2 , 3 ]
- The plan is at the planning stage and its place inside the Defense Department is undecided. [ 1 , 2 , 3 ]
- The Defense Department, through deputy spokesman Jacob Bliss, denied the report. [ 1 , 2 , 3 ]
- Feinberg announced an Economic Defense Unit (EDU) this year to deter and disrupt adversaries by economic means. [ 1 , 2 , 3 ]
Still unclear
- Whether the Pentagon is actually building the network. The Washington Post's sources describe it, while the Defense Department says the report rests on untrue information.
- Whether the programme will be a new independent unit or an expansion of existing Pentagon intelligence capabilities. The documents say this has not been decided.
- Whether congressional committees have been briefed. Only Newsis, relaying the Washington Post, says they appear not to have been briefed.