Communist Chinese spying: "the single greatest threat to U.S. technology"

Don't take my word for it; read the statement from the latest U.S.-China Economic and Security Review Commission report (emphasis added, link courtesy Brian McAdam - Member since 2004):

The pace and success of China’s military modernization continue to exceed U.S. government estimates. Indeed, on occasion the U.S. defense and intelligence communities have been taken by surprise, as in the case of the launching of the Jin class submarine by the navy of the People’s Liberation Army. China’s defense industry is producing new generations of weapon platforms with impressive speed and quality, and these advancements are due in part to the highly effective manner in which Chinese defense companies are integrating commercial technologies into military systems. Additionally, industrial espionage provides Chinese companies an added source of new technology without the necessity of investing time or money to perform research. Chinese espionage in the United States, which now comprises the single greatest threat to U.S. technology, is straining the U.S. counterintelligence establishment. This illicit activity significantly contributes to China’s military modernization and acquisition of new capabilities.

Who's "engagement" is this?