IC Operations & Tradecraft — 2026-10-23
Pentagon Plans Deep Cover Spy Program With Operatives Posing as Business People to Confront China
BLUFIt is unlikely that any congressional committee leader publicly demands a briefing or launches an inquiry into the reported Pentagon deep-cover program within the next 30 days, given the flat official denial and unresolved jurisdictional ambiguity between Title 10 and Title 50 oversight.
The Washington Post reported on October 21, citing half a dozen people familiar with the initiative, that the Pentagon is building a deep-cover program in which operatives pose as businesspeople without overt U.S. government affiliation, as a covert prong of its economic warfare campaign against China 12. Kurdistan24, relaying the Post, reported that Tom Rakusan, a 39-year CIA veteran and senior adviser to Deputy Defense Secretary Steve Feinberg, oversees the effort, which is in planning and not yet operational 34. Pentagon deputy press secretary Jacob Bliss denied the program exists, calling the query "simply not true," and the CIA declined to comment 3. Congressional committees do not appear to have been briefed 3. Global Times, a Chinese state-run outlet, said Beijing's Counter-Espionage Law gives it tools to respond 5.
AnalysisConfidence is low because the story rests on one original Washington Post report, with the other outlets amplifying it without independent sourcing, and the Pentagon flatly denies the program exists. Officials describe a hybrid "
Title 60" authority that falls between Title 10 and Title 50 oversight lines, which gives Armed Services and Intelligence members a jurisdictional reason to ask questions. It is
unlikely that a congressional committee chair or ranking member publicly states a Pentagon briefing on the deep-cover program, or announces a formal inquiry or demand letter about it, between October 23 and November 22. The denial lets the Pentagon decline briefings on a program it says does not exist, and the leak may reflect Pentagon-CIA turf competition, with former CIA officials exposing a rival effort, more than an operational program that will draw oversight. Beijing already frames the report as proof of U.S. economic espionage and may cite it when tightening Counter-Espionage Law enforcement against foreign business personnel. If oversight does materialize, committee staff must prepare for hearings or document demands and Pentagon counsel must defend the authority basis. Without it, planning continues with funding and authorities unexamined.
5 sources
- Pentagon looks to build a deep-cover spy program to confront China - The Washington Post
- Pentagon Builds Spy Program for Economic Warfare - Political Wire
- Pentagon Building Deep-Cover Spy Network Against China - Kurdistan24
- Pentagon to Develop Deep-Cover Espionage Capabilities to Wage Economic War Against China - Libertarian Institute
- The Pentagon denies sending 'merchant spies' to China, everyone laughed - Global Times
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