A covert network of companies linked to a Chinese tech firm has been actively attempting to recruit recently laid-off US government employees, Reuters reported, citing job postings and research findings.

Max Lesser, a senior analyst specializing in emerging threats at the Washington-based Foundation for Defense of Democracies, identified multiple firms behind the recruitment ads. He described them as “part of a broader network of fake consulting and headhunting firms targeting former government employees and AI researchers.”

Limited public information is available about the four consultancies and recruitment agencies allegedly involved. However, Reuters and Lesser's research found that they shared overlapping websites, operated on the same web server, or exhibited other digital connections.

The four firms’ websites are hosted at the same IP address as Smiao Intelligence, an internet services company whose website became inaccessible while Reuters was investigating.

Reuters reported that it didn't establish the exact relationship between Smiao Intelligence and the recruitment firms.

Efforts to verify these companies allegedly led to numerous dead-ends, including unanswered phone calls, disconnected numbers, non-existent addresses, fake locations, and removed LinkedIn job listings.

Lesser, who uncovered the operation and shared his findings with Reuters, noted that the campaign follows “well-established” tactics reportedly used in past Chinese intelligence operations. “What makes this activity significant,” he added, “is that the network seeks to exploit the financial vulnerabilities of former federal workers affected by recent mass layoffs.”

Reuters could not verify any direct links between the companies and the Chinese government or confirm whether any former federal employees were successfully recruited.

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Three intelligence analysts told Reuters that the operation appeared to be a classic example of foreign-linked entities attempting to gather intelligence from laid-off government personnel. They warned that former federal employees hired by the network could be gradually pressured into sharing sensitive government information or recommending others for recruitment—whether knowingly or unknowingly.

A spokesperson for the Chinese Embassy in Washington denied any involvement, stating in an email to Reuters that China was unaware of the firms in question and that “Beijing respects data privacy and security.”

The White House, however, warned that China is continually attempting to exploit the US “free and open system” through espionage and coercion. “Both active and former government employees must recognize the danger these governments pose and the importance of safeguarding government information,” a White House spokesperson said.

A February 28 CNN report cited US intelligence assessments suggesting that China and Russia have been targeting disaffected US government workers. Lesser pointed out that the job postings could serve as tangible evidence that such recruitment operations are currently active.

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