U.S. Defense Department Orders Comprehensive Audits of Universities Collaborating with China, Sets Security Barriers

Measures to Prevent Chinese Technology Theft
Pressure Mounts as AI Patents from Chinese Universities Surge

Reuters Yonhap News

The U.S. Department of Defense (formerly the Department of War) has demanded a comprehensive audit of American universities conducting joint research with Chinese institutions, warning that failure to comply will result in the loss of eligibility for federal research funding. This action comes as a further escalation following a recent round of sanctions that placed numerous Chinese universities and research institutions on the sanctions list last month. With Chinese universities and research organizations reportedly surpassing the U.S. in advanced technologies, including artificial intelligence (AI), these measures appear to be aimed at preventing the potential theft of U.S. technology by China.

On August 17 (local time), the Department of Defense announced in a statement, "We have notified 30 U.S. universities and academic institutions to immediately conduct a comprehensive audit of their academic, financial, and research partnerships with foreign entities." The department clarified that, "This notification targets organizations affiliated with foreign institutions designated under Section 1286 of the National Defense Authorization Act (NDAA) for Fiscal Year 2019, as well as groups associated with the so-called Confucius Institutes of China, even those that have changed their names."

The statement further emphasized, "Institutions receiving this notice must report the results of these audits and subsequent actions directly to the Department of Defense by August 31 to maintain eligibility for federal research funding." It added, "The Department of Defense, together with the House and Senate Armed Services Committees, the House and Senate Appropriations Committees, and the Select Committee on the Chinese Communist Party, continues to build a robust research ecosystem to ensure that critical research outcomes are protected and not misused."

The U.S. Department of Defense has already placed numerous Chinese universities and research organizations on its sanctions list. On July 23, the department updated what is commonly known as the "1286 List" of "foreign research institutions engaged in problematic activities," adding 88 Chinese research organizations to the list of sanctioned entities.

As a result, the Aerospace Information Research Institute and the National Time Service Center under the Chinese Academy of Sciences, Fudan University, Shanghai Jiao Tong University, Shandong University, and the University of International Relations were among those included. Institutions previously listed—such as military academies and research institutes under the Chinese military, research institutes affiliated with the Chinese Academy of Sciences, Beihang University, Beijing Institute of Technology, the Center for Strategic and Security Studies at Tsinghua University, the Beijing High Pressure Science Research Center, Beijing Institute of Quantum Information Science, Chongqing University, and the Changchun University Key Laboratory of High Efficiency Semiconductor Laser Defense Science and Technology—remain on the list.

The Chinese side has strongly objected to the U.S. sanctions against its universities. According to China's Ministry of Commerce, a statement posted on its website on July 29 criticized the United States for "continuously broadening the concept of national security, arbitrarily erecting discriminatory barriers, and politicizing, weaponizing, and instrumentalizing scientific research cooperation." The ministry urged, "The United States must stop making groundless accusations against Chinese research institutions, promptly correct its erroneous actions, and provide fair, just, and non-discriminatory treatment."

The main reason behind the Department of Defense's move to block not just Chinese universities but now also U.S. universities' collaborative projects with China is mounting concern over the potential loss of technological advantage in fields such as AI. According to Fortune magazine, a recent study by Professor Josh Lerner of Harvard Business School and joint researchers examined patents in 14 core technologies designated by the Department of Defense (including AI, advanced computing, and space technologies), finding that Chinese universities accounted for 25% of the patent filings—nearly eight times the 3.3% share held by U.S. universities.

Professor Lerner warned in Fortune, "Chinese open-source models, such as DeepSeek, are clearly gaining tremendous momentum through the support of university research in China," adding, "The quality gap that was expected to secure the U.S. technological edge is narrowing."

This content was produced with the assistance of AI translation services.