Linn Maung
China’s Brazen Theft of Sensitive Data: An Alarming Threat to Economic & National Security
The explosive findings from cybersecurity powerhouse Mandiant reveal yet another Chinese state-sponsored hacking operation targeting hundreds of global organizations through a vulnerability in Barracuda email software. Shockingly, nearly a third of victims identified were government agencies including multiple foreign ministries spanning Asia to Europe. By closely monitoring correspondence of diplomats organizing strategic meetings, the hackers demonstrate deep intent to steal geopolitical and policy insights for advantage. This is by no means an isolated attack.
FBI director Christopher Wray raised alarms last month that Chinese hackers have pillaged more records of Americans’ personal and business data than every other major economy combined. National Counterintelligence head Michael Orlando reinforced these warnings regarding China’s unprecedented wealth of stolen data and endless appetite for American and allied innovation. Top US investigative agencies have implicated Beijing’s hand in major breaches across healthcare giants like Anthem, insurers such as Equifax, entertainment groups ranging from Sony to MGM studios, and prominent tech firms including giants like IBM, Cisco, Microsoft, and Intel throughout the past decade.
Seemingly no sector remains out of reach – artificial intelligence, financial services, biopharmaceuticals, autonomous vehicles, or submarine defense contractors have all fallen prey at some point. Just last year, Chinese operatives were caught stealing source codes from Spanish defense contractor Indra that supplies NATO security systems. American aviation tech has proven irresistible to Chinese cyberspies as well with major firms like Boeing and GE reporting breaches of proprietary data. A former GE engineer Zheng Xiaoqing was indicted this January for exploiting company secrets on power turbine technology for Chinese firms. The China-nexus hacks ravaging both commercial and sensitive government data remain relentless.
So, what fuels China’s obsessive pillaging of foreign data, often facilitated aggressively via bribes or blackmail? For one, rapid indigenous innovation to feed its technological advancement and ascendancy across industries from manufacturing to telecom is heavily reliant on stealing trade secrets. Shortcuts via data theft provide Chinese firms an unfair advantage. Second, attaining global dominance in emerging technologies tied to artificial intelligence, quantum computing, biomedicine, and 6G require massive volumes of data on human behavior and advanced research. China’s civil-military fusion strategy specially aims to convert stolen data and foreign expertise into military might. So not only is economic supremacy at stake, but national security too.
Yet despite Cyber agency warnings of China’s advanced persistent threat groups like APT-10 infiltrating critical infrastructure, the response has been fragmented. True, the US-China cyber pact of 2015 once dialed down economic cyber-theft after infamous attacks traced to 5 PLA officers. However, experts argue Beijing sneakily shifted strategy to tap local contractors, blocked information requests, and continued assaults on American allies. Damning reports reveal how Chinese Communist Party funded programs like Fox Hunt and Operation Skeleton Key silenced over 500 dissidents globally or used shell companies to sustain spying from Europe to US. Meanwhile, thousands of unsuspecting CIA assets were executed from 2010-2012 after a breach of intelligence databases traced back to China. The scale of damage easily rivals the Cambridge Five Soviet spy ring.
With national security and economic prosperity clearly impaired, how must liberal democracies reexamine failed diplomatic policies and collectively address China’s mass data exfiltration apparatus? First counterintelligence agencies including domestic spy catchers MI5 & MI6 must prioritize monitoring Chinese commercial entities and foreign direct investment for illegal technology transfers. Enhanced scrutiny on academic exchanges and research partnerships with China using advanced biometrics, digital fingerprints, and systematic records of Chinese state-linked persons can help expose fake profiles and illegitimate access requests before critical data is compromised.
Second, export restrictions around emerging and foundational technologies merit multilateral coordination. Forums like the Wassenaar Arrangement must assess threats posed by militarization of China’s unmanned aerial systems relying on stolen chip designs. Governments in India, Japan, South Korea, and Taiwan where high concentrations of semiconductor fabricators are located must screen Chinese FDI and sanction local firms abetting black market trafficking of proprietary data. Such punitive costs can deter the enabling of China’s data theft machinery.
Finally, in the absence of any formal extradition treaties, an international cybercrimes coordination task force with allies to track, reveal identities, and prosecute Chinese cyber terrorists in special courts merits consideration. If Chinese hackers realize they cannot hide behind state protection, deterrence may rise. World leaders must realize fragmented rules just end up handicapping those wanting to legally benefit humankind, while totalitarian regimes joyfully weaponize stolen data from mRNA vaccines to aerospace blueprints. Now more than ever collective security imperatives in cyberspace merit coordinated action.
With the threat of cyber-attacks only growing in sophistication and frequency, it is imperative for governments, businesses, and individuals to remain vigilant and proactive in safeguarding their digital assets. By understanding the tactics and motivations behind China’s data theft operations, stakeholders can better equip themselves to mitigate risks and protect sensitive information from falling into the wrong hands. Through concerted efforts and collaboration on a global scale, we can effectively combat cyber threats and uphold the integrity of the digital ecosystem for generations to come.
Privacy is not a priority nor a concern for the Chinese Communist Party (CCP), whether it pertains to its own citizens or individuals worldwide. Within China, the CCP’s authoritarian regime employs extensive surveillance measures, such as the pervasive use of facial recognition technology and the Great Firewall, to monitor and control its population’s activities and communication. The government’s strict censorship and social credit system further curtail privacy rights, with dissenting voices often silenced and individuals penalized for expressing opinions deemed unfavorable by the regime. Moreover, the CCP’s reach extends beyond its borders through aggressive cyber espionage campaigns and digital surveillance initiatives. By hacking into foreign networks and exploiting vulnerabilities in technology infrastructure, China’s government routinely violates the privacy of individuals worldwide, gathering sensitive data for its own strategic and economic interests. This blatant disregard for privacy underscores the CCP’s overarching goal of maintaining control and exerting influence, both domestically and internationally, regardless of the ethical or legal implications.
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