Buildings stand at the central business district, Sept. 15, 2020. in Beijing, China. Zhou Jin/Qianlong.com/VCG via Getty Images
Following attempts to mandate that academic institutions disclose foreign grant sources, it has become more challenging to pinpoint funds channeled through collaborations and entities associated with Chinese interests or the government of China, investigators have found.
The Network Contagion Research Institute (NCRI) at Rutgers University, in a report published on Wednesday titled "Beijing's Dark Money Pipeline," stated that "the public discussion on foreign influence in higher education has been almost entirely concentrated on direct foreign donations and agreements."
Existing reporting mechanisms prioritize declarations under Section 117 of the Higher Education Act, but "a growing portion of university funding linked to China does not adhere to this method," according to the report.
Buildings stand at the central business district, Sept. 15, 2020. in Beijing, China.Zhou Jin/Qianlong.com/VCG via Getty Images
Instead, financial resources are transferred via domestic non-profit organizations "that appear to be American under current regulatory requirements for reporting."
"Once finances enter this framework, the foreign affiliations become considerably more difficult to ascertain – not due to concealment, but because the reporting structure does not inquire about them," the study further noted.
The research concluded that, even as most overseas funding for U.S. research grants has declined, investments originating from China have seen a significant increase. This is where the so-called "dark money" network becomes relevant, as highlighted in the report.
Earlier this year, the Department of Education launched a platform to monitor foreign contributions to American universities. According to this site, China alone has provided over $4 billion.
By analyzing a decade’s worth of IRS filings, NCRI identified over $400 million in funding categorized under 501(c) that is linked to "higher-education networks connected to or exposed to China."
While NCRI cautioned that this should not imply all funds originated from the Chinese government, "it illustrates that a considerable volume of funding associated with universities and connected to Chinese institutional networks flows through channels that are not covered by existing foreign-funding disclosure frameworks."
Previously, China has defended research collaborations with U.S. higher education institutions, asserting that they bring advantages to both parties.
John Cohen, formerly the head of intelligence for the Department of Homeland Security, commented that China has long sought to expand its influence within U.S. higher education as part of a strategy to supplant the United States as the foremost global superpower.
"China conducts extensive intelligence operations, encompassing both the acquisition of information and the development of covert operational capabilities throughout the United States," stated Cohen, who is also a contributor to ABC News.
"They achieve this by dispatching individuals who pose as students to universities. They provide investment in research initiatives. They send operatives to the United States under the guise of business professionals.
"They acquire property situated near military installations. They are purchasing companies operating in seaports nationwide. They undertake cyber activities, aiming to infiltrate our critical infrastructure."
Sourse: abcnews.go.com