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Pentagon looks to build a deep-cover spy program to confront China

The covert effort would send U.S. operatives abroad as businesspeople while the Pentagon expands economic intelligence against China and other rivals, sources said.

  • The Pentagon is planning a deep-cover spying program using nonofficial cover officers to conduct economic warfare against China, according to people familiar with the initiative. Tom Rakusan, a 39-year CIA veteran and adviser to Deputy Defense Secretary Steve Feinberg, is overseeing the planning.
  • A covid-era report revealed that roughly 75 percent of all deep-cover CIA officers face retirement by the mid-2020s. This attrition-driven gap in traditional agency capacity reportedly prompted the Pentagon to develop its own clandestine capabilities.
  • Feinberg formed the Economic Defense Unit this year to counter adversaries through economic means, including a $750 million investment in a Brazil rare earth deposit. The EDU is separate from the new spy initiative.
  • Pentagon deputy press secretary Jacob Bliss stated the reported initiative is "built on information that is simply not true." The Defense Department categorically dismissed claims that such a deep-cover program is currently underway.
  • In a post-9/11 case in Africa, Joint Special Operations Command-affiliated NOCs were compromised after encountering civilians. This historical incident illustrates the extreme dangers inherent in deep-cover work when operatives inadvertently encounter non-intelligence personnel.
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On Wednesday (October 21), The Washington Post, citing six sources familiar with the matter, reported that the Pentagon was planning to establish a more powerful secret intelligence program to support its economic war against China. The Department of Defense questioned the report and denied the plan.

·New York, United States
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Bias Distribution

  • 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left

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The Washington Post broke the news in Washington, United States on Wednesday, October 21, 2026.
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