Chinese firms are sending money to U.S. startups, include rocket engine manufacturers, companies that design sensors for autonomous naval ships and printers that make flexible screens that could be used in fighter jets. Many of the Chinese firms making the investments are owned by state-owned companies or have connections to Chinese officials, according to the Times. 

Department of Defense (DOD) officials worry about the investments because they have found that China is encouraging companies with close government ties to invest in U.S. startups specializing in technology that could advance China's military and its economy, according to a new DOD special report.

The Pentagon sent the report — commissioned before President Trump took office — to senior administration officials this week.