Reports have emerged that the U.S. Department of Defense is pursuing the establishment of a covert spy organization aimed at economic warfare against rival nations, including China. The Pentagon has strongly denied these claims.
The Washington Post cited six sources familiar with the matter, stating that the Defense Department plans to enhance a program involving non-official cover (NOC) agents who would operate disguised as civilians, such as businesspeople, without revealing their government ties. This initiative is part of a broader strategy to build an intelligence network necessary for gaining an advantage in the economic conflict with China.
According to the Post, the project is overseen by Tom Rakusan, a senior advisor to Deputy Secretary of Defense Steve Feinberg. Rakusan previously worked for 39 years at the Central Intelligence Agency (CIA), where he served as deputy director overseeing covert operations and led efforts to respond to Russian interference in the 2016 U.S. presidential election. After retiring in 2021, he joined the private equity firm Cerberus Capital, co-founded by Feinberg, before returning to the Defense Department last year. The initiative also involves experts from the Defense Department's intelligence division, military specialists, and retired CIA officers.
However, the project remains in the planning stages and has not yet been implemented. It is unclear whether it will become a standalone organization or expand the existing covert human intelligence capabilities of the Defense Department. It appears that Congress's intelligence committees have not been informed about the initiative.
The Defense Department has categorically rejected the reports. Deputy Press Secretary Jacob Bliss stated that the claims are based on false information, asserting that those making such assertions are either misinformed or deliberately misleading. The CIA and Rakusan did not respond to requests for comment.
This proposal aligns with the Trump administration's approach of actively utilizing economic measures as a tool for national security. Michael Ellis, CIA's deputy director, publicly announced in September that the agency is expanding its intelligence activities targeting Chinese companies in the fields of artificial intelligence, biotechnology, and advanced semiconductors. The Defense Department also established an Economic Defense Unit (EDU) this year, investing hundreds of millions of dollars in domestic and international oil and mineral ventures, including $750 million for securing a major rare earth mine in Brazil. Initially, there were discussions about placing the secret spy organization under the EDU, but this was reportedly shelved due to increasing media and congressional scrutiny of the EDU.
Within the CIA, there are signs of dissent regarding the initiative. A former senior CIA official criticized Rakusan for attempting to create his own version of the CIA within the Defense Department. The CIA has historically viewed overseas human intelligence operations as its exclusive domain, maintaining that intelligence activities by other agencies should be coordinated under the local CIA chief.
* This article has been translated by AI.
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