The Pentagon is planning an expanded intelligence program for economic warfare against China and other US competitors, reports The Washington Post, citing six people familiar with the initiative. According to them, American employees would work undercover as businessmen or other representatives of the private sector, with no apparent connection to the government.
The program is in the planning stage and is not yet operational. It has not been decided in which Pentagon structure it will be located. It is possible that a separate unit could be created or existing capabilities for covert human intelligence collection could be expanded.
Pentagon denies information
The US Department of Defense has denied developing such an initiative. “This inquiry appears to be based on information that is simply not true”, said Pentagon deputy spokesman Jacob Bliss.
He said the people spreading the claims were “either seriously misinformed or deliberately misleading you”. The CIA did not comment on the report, and Tom Rakusan did not respond to a request for comment.
Rakusan's role and economic intelligence
The initiative is being planned by Rakusan, who worked for 39 years at the CIA and was deputy director of operations in 2017. After retiring in 2021, he joined the investment company Cerberus Capital Management, founded by Steve Feinberg, and in 2025 he will follow him to the Pentagon.
Experts from various structures of the military department, from the office of the deputy secretary of intelligence and security, as well as former CIA employees, are involved in the work on the project.
The initiative fits into the broader course of the administration of President Donald Trump towards using economic tools in the rivalry with China. In 2026, Feinberg announced the creation of an Economic Defense Unit to help deter, limit, and disrupt adversaries through economic means.
In September, CIA Deputy Director Michael Ellis said the United States was expanding its spying efforts against Chinese companies in areas such as artificial intelligence, biotechnology, and advanced semiconductors.
Risks and Legal Issues
Working undercover is considered particularly risky because employees cannot use U.S. embassies and do not have diplomatic immunity if detained. Former CIA officials have also warned of potential conflict between the two agencies due to overlapping functions.
The legal status of the future program remains unclear. According to the publication, it is yet to be decided whether it will be part of the Pentagon's existing intelligence capabilities or operate as a separate unit.
Sources: washingtonpost.com, ca.headtopics.com, defensescoop.com