TIPSHEET_ Here's How China Is Trying to Capitalize on Trump's Mass Layoffs

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TIPSHEET

Here's How China Is Trying to Capitalize on Trump's Mass Layoffs

Jeff Charles | March 26, 2025 1:00 PM

Ron Edmonds


A Chinese tech firm operating a network of companies has been trying to recruit federal government employees who were recently laid off.

This could raise several concerns about national security – especially since the network is believed to be trying to entice former workers who might be able to provide sensitive government information. Reuters noted that the network includes four different companies working to enlist former federal employees.

Max Lesser, a senior analyst on emerging threats with the Washington-based think tank Foundation for Defense of Democracies, said some companies placing recruitment ads were “part of a broader network of fake consulting and headhunting firms targeting former government employees and AI researchers.”

Little information is publicly available on the four consultancies and recruitment companies allegedly involved in the network, which in some cases shared overlapping websites, were hosted on the same server, or had other digital links, according to Reuters’ reporting and Lesser’s research.

The four companies’ websites are hosted at the same IP address alongside Smiao Intelligence, an internet services company whose website became unavailable during Reuters’ reporting. Reuters could not determine the nature of the relationship between Smiao Intelligence and the four companies.

Lesser told Reuters that the Chinese operation employs tactics used in previous intelligence endeavors. He noted that “the network seeks to exploit the financial vulnerabilities of former federal workers affected by recent mass layoffs.”

Asked about the research, three intelligence analysts told Reuters that the network appeared to be a prime example of how foreign-linked entities are trying to gather intelligence from staff members fired or forced into retirement by President Donald Trump and billionaire tech tycoon Elon Musk’s Department of Government Efficiency.

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READ MORE: https://townhall.com/tipsheet/jeff-charles/2025/03/26/chinese-network-tries-recruiting-laid-off-federal-workers-n2654508

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