Made-in-USA label pays off for investors

April 1, 2013 by Leave a comment

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Adam Shell, USA TODAY

NEW YORK — The benefits of the Made-in-the-USA marketing tag now apply to stocks as well as shoes, SUVs and software.

How so? With Europe hobbled by debt, white-hot China cooling and emerging markets slowing, stocks of U.S. companies that get most of their revenue from U.S.-based sales are performing better than companies that do 50% or more of their sales abroad, where things aren’t going as well.

The part of the world where a company makes most of its money can be the difference between a great investment and an OK one. In the past 12 months, U.S. stocks that generate all sales at home are up an average of 18.6%, vs. a gain of 6.2% for American firms that get more than half their revenue from abroad, Bespoke Investment Group says.

“A major theme of 2013 has clearly been a preference for U.S.-centric stocks,” says Paul Hickey, Bespoke’s co-founder. Why? “The U.S., relative to the rest of the world, is the strongest economy.”

That trend helped drive the Standard & Poor’s 500 index to an all-time closing high Thursday and a 10% first-quarter gain.

Domestically focused companies are also sporting better earnings growth, as well as benefiting from inflows of capital from foreign investors that view the U.S. as a haven, Hickey says.

One of Wall Street’s biggest winners this year is media subscription service Netflix, which gets less than 3% of its sales outside the U.S., says S&P Dow Jones Indices. Netflix shares are up 104%. In contrast, tech player Qualcomm, which gets nearly 97% of revenue from abroad and recently warned of slowing growth in Asia, is up 8.2%.

 Nearly half, or 46%, of sales of companies in the S&P 500 occur overseas, says Howard Silverblatt, an analyst at S&P Dow Jones Indices.

Analysts also see positives in the All-American story, as they’ve been issuing more positive earnings revisions than negative ones in the past four weeks.

The U.S. market, and particularly, domestically focused names, have held up better than foreign stock markets recently following the “Cyprus Surprise,” the latest bailout in the eurozone to spook global investors. Also driving the better performance is the spate of better-than-expected economic data this month, which prompted Barclays to raise its first-quarter U.S. GDP estimate to 2.6% from 1.6%.

While U.S. shares have performed better than a broad index of foreign stocks for more than two years, the outperformance has been particularly acute since late 2012, when the U.S. averted a fiscal crisis and election-related political gridlock weighed on sentiment.

“Once the ‘fiscal cliff’ negotiations were settled, U.S. stocks rebounded and haven’t looked back,” Hickey says.

 

source: http://www.usatoday.com/story/money/markets/2013/03/31/american-centric-stocks-sport-big-gains/2022159/

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US Swipes at China for Hacking Allegations

March 28, 2013 by Leave a comment

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The U.S. has taken its first real swipe at China following accusations that the Beijing government is behind a widespread and systemic hacking campaign targeting U.S. businesses.

Buried in a spending bill signed by President Barack Obama on Tuesday is a provision that effectively bars much of the federal government from buying information technology made by companies linked to the Chinese government.

It’s unclear what impact the legislation will have, or whether it will turn out to be a symbolic gesture. The provision only affects certain non-defense government agency budgets between now and Sept. 30, when the fiscal year ends. It also allows for exceptions if an agency head determines that buying the technology is “in the national interest of the United States.”

Still, the rule could upset U.S. allies whose businesses rely on Chinese manufacturers for parts and pave the way for broader, more permanent changes in how the U.S. government buys technology.

“This is a change of direction,” said Stuart Baker, a former senior official at the Homeland Security Department now with the legal firm Steptoe and Johnson in Washington. “My guess is we’re going to keep going in this direction for a while.”

In March, the U.S. computer security firm Mandiant released details on what it said was an aggressive hacking campaign on American businesses by a Chinese military unit. Since then, Treasury Secretary Jacob Lew has used high-level meetings with Beijing officials to press the matter. Beijing has denied the allegations.

Congressional leaders have promised to push comprehensive legislation that would make it easier for industry to share threat data with the government. But those efforts have been bogged down amid concerns that too much of U.S. citizens’ private information could end up in the hands of the federal government.

As Congress and privacy advocates debate a way ahead, lawmakers tucked “section 516″ into the latest budget resolution, which enables the government to pay for day-to day operations for the rest of the fiscal year. The provision specifically prohibits the Commerce and Justice departments, NASA and the National Science Foundation from buying an information technology system that is “produced, manufactured or assembled” by any entity that is “owned, operated or subsidized” by the People’s Republic of China.

The agencies can only acquire the technology if, in consulting with the FBI, they determine that there is no risk of “cyberespionage or sabotage associated with the acquisition of the system,” according to the legislation.

The move might sound like a no-brainer. If U.S. industry and intelligence officials are right, and China is stealing America’s corporate secrets at a breathtaking pace, why reward Beijing with lucrative U.S. contracts? Furthermore, why install technical equipment that could potentially give China a secret backdoor into federal systems?

But a blanket prohibition on technology made by the Chinese government may be easier said than done. Information systems are often a complicated assembly of parts manufactured by different companies around the globe. And investigating where each part came from, and if that part is made by a company that could have ties to the Chinese government could be difficult.

Depending on how the Obama administration interprets the law, Baker said it could cause problems for the U.S. with the World Trade Organization, whose members include U.S. allies like Germany and Britain that might rely on Chinese technology to build computers or handsets.

But in the end, Baker says it could make the U.S. government safer and wiser.

“We do have to worry about buying equipment from companies that may not have our best interests at heart,” he said.

———

Follow Anne Flaherty on Twitter at https://twitter.com/AnneKFlaherty.

Also Read

 

Source: http://news.yahoo.com/us-swipes-china-hacking-allegations-193407762.html

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“Buying American” Generally Matters More to Women Than Men

March 6, 2013 by Leave a comment

Harris Importance of Buying American March 2013 woman

A majority of American adults believe that it is important to “buy American” across a variety of product types, according to results from a Harris Interactive survey, even if the definition of what constitutes an “American” product is not universally shared by respondents. Interestingly, while there were few gaps in the importance placed on “buying American” among Republicans and Democrats responding to the survey, women were more likely than men to feel it more important for each product category identified.

For example, women were:

  • 11% more likely to consider “buying American” important when purchasing major appliances (79% vs. 71%);
  • 10% more likely to consider it important for furniture purchases (78% vs. 71%);
  • 15% more likely to place importance on this factor when buying clothing (77% vs. 67%);
  • 14% more likely to find it important for car purchases (74% vs. 65%); and
  • 20% more likely to consider it important when buying home electronics (72% vs. 60%).

On each count, 18-35-year-olds were significantly less likely than any other generation to believe that “buying American” is important to them.

The survey finds that the definition of what constitutes “buying American” isn’t universally agreed upon. Three-quarters agree that a product needs to be manufactured within the US for them to consider it “American,” while a slight majority believe that it needs to be made by an American company for them to consider it “American.” Close behind, 47% agree that a product needs to be made from parts produced in the US for them to consider it “American.”

As the researchers note, the company perceived by respondents to be the most “American” – Ford – increasingly has cars which include parts produced abroad. Other companies showing up in the most “American” list – such as GE and Levi Strauss – also outsource some of their operations overseas.

Regardless of the extent to which these companies’ products meet consumer definitions, “Made in America” packaging can influence consumers. A study released last year by Perception Research Services found that about 8 in 10 shoppers notice “Made in the USA” claims in packaging, and about three-quarters of those believe that such claims make them more likely to buy the product.

According to the Harris survey results, the most commonly-cited important reasons for “buying American” are to keep jobs in America (90%), to support American companies (87%), and due to quality (83%) and safety (82%) concerns with products assembled outside of the US.

About the Data: The Harris Poll was conducted online within the United States between December 12 and 18, 2012 among 2,176 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Data for the “What company do you consider to be most ‘American’” question was conducted online within the United States between January 2 and 4, 2012 among 2,126 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Source: http://www.marketingcharts.com/wp/topics/automotive/buying-american-generally-matters-more-to-women-than-men-27559

 

o learn more about Made in USA Certification: http://www.USA-C.com

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China’s hacking, brought to you by U.S. trade policy.

February 28, 2013 by Leave a comment

 

 

China and US Flag

Dear Friend,

Washington still doesn’t get it. We’ve known for years that China hacks government networks, industry computers, and advocacy groups like ours.

A study released last week by a Virginia-based cyber-security company confirms this: The Chinese military is responsible for a series of sophisticated computer hacking attacks on more than 140 American companies.

These hackers have stolen everything from product design blueprints to business strategies, and have also made a persistent effort to gain access to the controls of our infrastructure, including oil and gas pipelines and our electrical grid.

The Obama administration has known about China’s cyber hacking for some time. But the White House has sat on its hands because it believes calling Beijing out for cheating could undermine our overall relationship. In fact, the Administration still sometimes refrains from specifically identifying China as the hacking extraordinaire it’s proving itself to be.

News flash: When China uses its military to steal from American companies, it undermines our relationship. And when it starts groping for a hand on our power switch, we need to rethink what we’re getting in return.

Our official strategy — twisting like a pretzel to avoid offending the Chinese government (even when we catch them stealing from us) — is clearly not working. So why not try something else?

We run an enormous trade deficit with China every year, including a record $315 billion in 2012.  China uses that money to spy on us. So here’s an idea: Why not use our trade relationship to force Beijing to play by the rules?

Contrary to what some Washington insiders suggest, getting tough on China’s cheating won’t start a trade war. Just like anyone else, China responds to pressure. In fact, when Washington has actually moved to address China’scurrency manipulation, Beijing has responded by budging the value of its currency incrementally (see the chart, above).

Yes, we have a large, complex relationship with China.  But it’s really not rocket science: Calling out Beijing for flouting the rules gets results, a point I made this morning in an editorial for CNBC.

If China’s cyber-hacking concerns you, keep yourself up to date.  Follow the conversation on our blog, ManufactureThis, and on Twitter, Facebook, Pinterest, and Tumblr.

Together, we can keep it Made in America!

Sincerely,

Scott Paul
President
Alliance for American Manufacturing (AAM)

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China nears approval of $16 billion domestic jet-engine plan

February 28, 2013 by 1 Comment

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SHANGHAI (Reuters) – China’s cabinet may soon approve an aircraft engine development program that will require investment of at least 100 billion yuan ($16 billion), state-run Xinhua news agency quoted unidentified industry sources as saying.

China is determined to reduce its dependency on foreign companies like Boeing Co (BA), EADS-owned Airbus (EAD.PA), General Electric Co (GE) and Rolls Royce Plc (RR.TO) for the country’s soaring demand for planes and engines.

So far the domestic aerospace industry has failed to build a reliable, high-performance jet engine to end its dependence on Russian and Western makers for equipping its military and commercial aircraft.

Xinhua on Thursday quoted an unidentified professor at the Beijing University of Aeronautics and Astronautics (BUAA) with knowledge of the project as saying the investment would be used mainly for research on technology, designs and materials related to aircraft engine manufacturing.

The project was going through approval procedures in the State Council and may be approved shortly, the professor was quoted as saying.

Participants in the project include Shenyang Liming Aero-Engine Group Corp, AVIC Xi’an Aero-Engine (Group) Ltd <600893.SS> and research institutes including the BUAA, Xinhua reported.

Aviation Industry Corporation of China (AVIC), the country’s dominant military and commercial aviation contractor, had lobbied the government to back a multi-billion dollar plan to build a high-performance jet engine.

China’s military and aerospace industries have suffered from bans on the sale of military equipment imposed by Western governments after the Tiananmen Square crackdown and foreign engine-makers are reluctant to transfer costly technology.

Some Chinese aviation industry specialists forecast Beijing will eventually spend up to 300 billion yuan ($49 billion) on jet-engine development over the next two decades.

($1 = 6.2273 Chinese yuan)

(Reporting by John Ruwitch; Editing by Matt Driskill)

Source: http://finance.yahoo.com/news/china-nears-approval-16-billion-082429899.html

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How Ending Currency Manipulation Will Help Manufacturers

February 26, 2013 by Leave a comment

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by 

Many American economists and policymakers believe that currency manipulation by U.S. trading partners such as Japan and Singapore – and especially China – creates a drag on the U.S. economy and depresses the country’s manufacturing sector.

Currency Manipulation

Currency manipulation by U.S. trading partners such as Japan and Singapore – and especially China – creates a drag on the U.S. economy and depresses the country’s manufacturing sector.

Currency manipulation involves artificially reducing the value of a country’s own currency, in effect providing a subsidy for national exports. Currency manipulators often buy U.S. treasury bonds to prevent their own currencies from strengthening. In the case of China, the country’s trade with the U.S. brings in an excess of U.S. dollars and would normally create a shortage of yuans. But to avoid the yuan’s appreciation and prop up its manufacturing sector, China buys up U.S. treasuries to keep the yuan out of currency exchange markets, thus maintaining an artificially low value.

About one out of every six U.S. private-sector jobs is in manufacturing, 17.2 million in total, according to the National Association of Manufacturers(NAM). However, manufacturing dominates when it comes to U.S. trade goods, accounting for 86 percent of exports in 2011, the U.S. International Trade Commission (USITC) says. So a U.S. trade deficit, exacerbated by currency manipulation, has a disproportionately negative effect on the manufacturing sector.

Robert E. Scott, Helen Jorgensen, and Doug Hall of the Economic Policy Institute (EPI) explain that reviving the crucial U.S. manufacturing sector “requires eliminating a jobs-destroying U.S. trade deficit in goods,” in large part by ending currency manipulation. Currency manipulation, the group says, “distorts international trade flows by artificially lowering the cost of U.S. imports and raising the cost of U.S. exports,” thereby displacing American manufacturing jobs.

Eliminating currency manipulation would reduce the U.S. trade goods deficit by at least $190 billion and as much as $400 billion over three years, allowing the U.S. to “reap enormous benefits” without any increase in federal spending or taxation. This would reduce U.S. unemployment by 1 to 2.1 percentage points and create between 2.2 million and 4.7 million jobs; between 620,000 and 1.3 million of those jobs would be in manufacturing. In addition, U.S. GDP would increase between 1.4 percent and 3.1 percent.

The Group of Seven (G7) top industrial nations is concerned that continued currency manipulation is creating dangerous instability in the global economy. The organization, which is comprised of the U.S., Canada, France, Germany, Italy, Japan, and the U.K., recently saidits members are committed to market-determined exchange rates and “will remain oriented towards meeting our respective domestic objectives using domestic instruments.”

The G7 affirmed that they “will not target exchange rates” – meaning they themselves refuse to be involved in currency manipulation. “We are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability,” the group declared.

Artificially lowering a country’s exchange rate can make its exports cheaper and promote growth internally, but that only causes problems for other countries because one currency can fall only if another rises. This imbalance, the EPI warns, “could spark a ‘currency war’ – a destabilizing battle where countries compete against one another to get the lowest exchange rate.” This scenario “conjures up images of the 1930s, when countries pursued tit-for-tat devaluations in order to get an edge… the outcome was to decimate global trade, accentuate the depression, and sow the seeds for World War II,” according to the institute.

 

Scott Paul, president of the Alliance for American Manufacturing (AAM), argued that policymakers need to act now to prevent further harm from unfair trade practices.

“Congress is obsessed with the wrong deficit,” Paul said. “To grow jobs and boost the economy, we must eliminate the trade deficit. Ending currency manipulation will get us part of the way there, but we also need a smart manufacturing policy, one that focuses on innovation, public investment, skills, and trade enforcement.”

According to the EPI report, any U.S president could end currency manipulation with a stroke of the pen: “The president could simply declare that the United States will no longer sell Treasury bills and other government assets to China and other countries that refuse to allow the United States to purchase their government assets… Refusing to sell assets to currency manipulators would eliminate the principal tool used by foreign central banks to manipulate their currencies: purchases of Treasury bills and other government securities…”

Olli Rehn, top monetary affairs official for the European Commission (EC), told the Associated Press that joint governmental efforts are needed to fight the adverse effects of “excess volatility and disorderly movements” in exchange rates. “That’s why we need to lean on active international policy coordination in order to prevent a wave of competitive devaluations.”

 

 

Source: http://news.thomasnet.com/IMT/2013/02/26/how-ending-currency-manipulation-will-help-manufacturers/

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Why Siemens is expanding U.S. manufacturing

February 21, 2013 by Leave a comment

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PHOTO: Former Treasury Secretary Timothy Geithner (R) walks with Siemens Energy Director of Operations Mark A. Pringle (L) during a visit to Siemens Energy’s plant in Charlotte, North Carolina, January 25, 2012. REUTERS/Chris Keane

By Helmuth Ludwig Reuters

In his State of the Union address Tuesday, President Barack Obama talked about the importance of upgrading America’s aging infrastructure. He told the story of how our company, Siemens, recently created hundreds of manufacturing jobs in North Carolina. He quoted our U.S. CEO as saying that if America upgrades its infrastructure, we’ll bring even more jobs.

But there’s another important reason we chose North Carolina, along with more than 100 other manufacturing sites in this country. By manufacturing in the U.S., we get proximity to our largest market; highly skilled workers and crucial software engineers in the Research Triangle, educated at some of the world’s best universities; ready access to ports for export, and cutting-edge innovation that we can link directly to our manufacturing sites. All in a business-friendly atmosphere.

America is poised to lead the next manufacturing renaissance. Sophisticated software is the critical component — and that’s what America produces better than anyone. But smart public policy is also needed. So is a sharp focus on what will make U.S. factories more productive, efficient and sustainable.

When industry insiders talk about America’s improving manufacturing outlook, they usually cite four components of production that have shaped global manufacturing for the past decade. But these elements are now being radically rethought ‑ in a way that plays to U.S. strengths.

First, the idea that the world is “flat” has been supplanted by the idea that speed matters. Innovation speed is now understood to be a competitive advantage. So keeping design and manufacturing half a world apart – manufacturing in China, for example, when your design team is in California – makes less and less sense.

Second, the assumption that lower wages always correlate with lower total cost has proved to be false. Manufacturers increasingly recognize that months-long transportation chains can contribute to substantial direct and indirect costs.

Third, the belief that U.S. energy costs would be a long-term disadvantage has been deflated by unconventional fossil fuel reserves. The “shale gale” is driving U.S. natural gas prices to less than a quarter of those in much of Europe and Asia.

Fourth, the faith that outsourced “low-value” manufacturing jobs would be replaced by higher-value service jobs has been adjusted to the reality that manufacturing underpins the economy. It is crucial to create and sustain steady high-wage employment.

But the major reason why U.S. manufacturing is so well positioned for a renaissance is software that can bring the real and virtual worlds together in a way that erases all boundaries between the two. It connects everyone involved in product design and execution to the same network, sharing the same sets of data, to improve collaboration and decision-making.

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Senators raise alarm over another possible sale of taxpayer-backed firm to Chinese

February 21, 2013 by Leave a comment

Fisker 660

A solar roof is seen on a Fisker Karma hybrid electric car during the North American International Auto Show in Detroit, Michigan. (Reuters)

Republican senators complained Wednesday that U.S. taxpayer dollars could end up boosting the Chinese economy, following reports that a Chinese firm is leading the pack of companies bidding for a majority stake in government-backed Fisker Automotive.

The troubled California-based electric car maker, which was backed by U.S. taxpayers to the tune of nearly $530 million, for months has been looking for a financial partner. Reuters reported earlier this week that China’s Zhejiang Geely Holding Group is favored to take over, though Fisker is also reportedly weighing a bid from another Chinese auto maker.

The development comes after Fisker’s main battery supplier — U.S. government-backed A123 Systems — was recently purchased by a separate Chinese firm.

Sens. John Thune, R-S.D., and Chuck Grassley, R-Iowa, voiced concern Wednesday that Chinese companies are benefiting from U.S. taxpayers’ investment.

“Obama’s green energy investments appear to be nothing more than venture capital for eventual Chinese acquisitions,” Thune said in a statement. “After stimulus-funded A123 was just acquired by a Chinese-based company, it’s troubling to see that yet another struggling taxpayer-backed company might be purchased under duress by a Chinese company.”

Grassley added: “Like A123, this looks like another example of taxpayer dollars going to a failed experiment. Technology developed with American taxpayer subsidies should not be sold off to China.”

Despite the Reuters report, Fisker stressed that the bidding process is still very much open.

“The company has received detailed proposals from multiple parties in different continents which are now being evaluated by the company and its advisors,” Fisker spokesman Roger Ormisher said in a statement.

The Obama administration also defended the Energy Department’s overall loan program, which originally extended the nearly $530 million loan to Fisker in 2010.

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Intel’s First Factory Customer Touts Made-in-USA Chips

February 20, 2013 by Leave a comment

Wall Street Journal

By Don Clark

A chip company called Achronix on Wednesday is announcing that the first fruits of Intel’s new build-to-order service are emerging from the factory. That’s a milestone for both companies, and a surprising sidelight could play into the story–worries about dependence on non-U.S. manufacturers.

The Silicon Valley startup in 2010 turned to Intel, which opted to break from long-standing practice and use its sophisticated factories and manufacturing processes to serve customers beyond Intel’s own chip-design groups. Achronix became one of two publicly announced users of the new Intel foundry business, as such services are called.

Intel believes it can make smaller and more sophisticated transistors than other foundries. Achronix, which makes a variety of programmable chips that use lots of transistors, says its bet on Intel has paid off as advertised.

The chips, which include models with a whopping six billion transistors, consume half the power of competing chips and cost about half as much, Achronix says. It is shipping sample quantities to customers now and, when extended testing is completed, will be shipping them in volume in the third quarter, says Robert Blake, the company’s president and chief executive officer.

Most foundry factories are in Taiwan or other parts of Asia. Achronix is quick to point out that the entire process of making its chips is handled in the United States.

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Commercial cyberspying and theft gives rich payoff

February 20, 2013 by Leave a comment

For state-backed cyberspies, stealing commercial secrets promises rich payoff

By Joe Mcdonald, AP Business Writer | Associated Press

China and US Flag

Associated Press -
In this Nov. 7, 2012 photo, U.S. and Chinese national flags are hung outside a hotel during the U.S. Presidential election event, organized by the U.S. embassy in Beijing. As public evidence mounts that the Chinese military is responsible for stealing massive amounts of U.S. government data and corporate trade secrets, the Obama administration is eyeing fines and other trade actions it may take against Beijing or any other country guilty of cyberespionage. The Chinese government, meanwhile, has denied involvement in the cyber-attacks tracked by Mandiant. Instead, the Foreign Ministry said that China, too, is a victim of hacking, some of it traced to the U.S. Foreign Ministry spokesman Hong Lei cited a report by an agency under the Ministry of Information Technology and Industry that said in 2012 alone that foreign hackers used viruses and other malicious software to seize control of 1,400 computers in China and 38,000 websites. (AP Photo/Andy Wong)

BEIJING (AP) — For state-backed cyberspies such as a Chinese military unit implicated by a U.S. security firm in a computer crime wave, hacking foreign companies can produce high-value secrets ranging from details on oil fields to advanced manufacturing technology.

This week’s report by Mandiant Inc. adds to mounting suspicion that Chinese military experts are helping state industry by stealing secrets from Western companies possibly worth hundreds of millions of dollars. The Chinese military has denied involvement in the attacks.

“This is really the new era of cybercrime,” said Graham Cluley, a British security expert. “We’ve moved from kids in their bedroom and financially motivated crime to state-sponsored cybercrime, which is interested in stealing secrets and getting military or commercial advantage.”

Instead of credit card numbers and other consumer data sought by crime gangs, security experts say cyberspies with resources that suggest they work for governments aim at better-guarded but more valuable information.

Companies in fields from petrochemicals to software can cut costs by receiving stolen secrets. An energy company bidding for access to an oil field abroad can save money if spies can tell it what foreign rivals might pay. Suppliers can press customers to pay more if they know details of their finances. For China, advanced technology and other information from the West could help speed the rise of giant state-owned companies seen as national champions.

“It’s like an ongoing war,” said Ryusuke Masuoka, a cybersecurity expert at Tokyo’s Center for International Public Policy Studies, a private think tank. “It is going to spread and get deeper and deeper.”

Mandiant, headquartered in Alexandria, Virginia, said it found attacks on 141 entities, mostly in the United States but also in Canada, Britain and elsewhere.

Attackers stole information about pricing, contract negotiations, manufacturing, product testing and corporate acquisitions, the company said. It said multiple details indicated the attackers, dubbed APT1 in its report, were from a military unit in Shanghai, though there was a small chance others might be responsible.

Target companies were in four of the seven strategic industries identified in the Communist Party’s latest five-year development plan, it said.

“We do believe that this stolen information can be used to obvious advantage” by China’s government and state enterprises, Mandiant said.

China’s military is a leader in cyberwarfare research, along with its counterparts in the United States and Russia. The People’s Liberation Army supports hacker hobby clubs with as many as 100,000 members to develop a pool of possible recruits, according to security consultants.

Mandiant said it traced attacks to a neighborhood in Shanghai’s Pudong district where the PLA’s Unit 61398 is housed in a 12-story building. The unit has advertised online for recruits with computer skills. Mandiant estimated its personnel at anywhere from hundreds to several thousand.

On Wednesday, the PLA rejected Mandiant’s findings and said computer addresses linked to the attacks could have been hijacked by attackers elsewhere. A military statement complained that “one-sided attacks in the media” destroy the atmosphere for cooperation in fighting online crime.

Many experts are not swayed by the denials.

“There are a lot of hackers that are sponsored by the Chinese government who conduct cyberattacks,” said Lim Jong-in, dean of Korea University’s Graduate School of Information Security.

The United States and other major governments are developing cyberspying technology for intelligence and security purposes, though how much that might be used for commercial spying is unclear.

“All countries who can do conduct cyber operations,” said Alastair MacGibbon, the former director of the Australian Federal Police’s High Tech Crime Center.

“I think the thing that has upset people mostly about the Chinese is … that they’re doing it on an industrialized scale and in some ways in a brazen and audacious manner,” said MacGibbon, who now runs an Internet safety institute at the University of Canberra.

China’s ruling party has ambitious plans to build up state-owned champions in industries including banking, telecoms, oil and steel. State companies benefit from monopolies and other official favors but lack skills and technology.

Last year, a group of Chinese state companies were charged in U.S. federal court in San Francisco in the theft of DuPont Co. technology for making titanium dioxide, a chemical used in paints and plastics.

In 2011, another security company, Symantec Inc., announced it detected attacks on 29 chemical companies and 19 other companies that it traced to China. It said the attackers wanted to steal secrets about chemical processing and advanced materials manufacturing.

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