US accuses Chinese hackers of targeting critical infrastructure in America

The United States on Monday imposed sanctions on Chinese hackers and accused them of serving as a front for Beijing's main spy agency, part of a broad effort to plant malware in power grids, America's water systems and other critical infrastructure.

The sanctions represent a major escalation in what has become an increasingly heated struggle between the Biden administration and Beijing.

While there have been no instances so far of the Chinese government disabling essential services, U.S. intelligence agencies have warned in recent months that the malware appears to be intended for use if the U.S. comes in aid to Taiwan.

By cutting off essential services to military bases and civilian populations, China is, according to a series of intelligence findings, attempting to turn Americans in on themselves, by worrying them about their own supplies of electricity, food and water. water, rather than helping a distant island that Beijing claims. like his.

The sanctions were part of a joint effort between the United States and Britain to crack down on Chinese hacking of vital services. In announcing these new measures, the Treasury Department described state-sponsored malicious cyber actors as one of the most significant and persistent threats to U.S. national security.

The sanctions were unveiled as the Justice Department announced charges against seven Chinese nationals accused of conspiring to commit computer intrusions and wire fraud.

The hackers were part of a group known as Advanced Persistent Threat 31, or APT31, which has targeted U.S. businesses, government and political officials, candidates and campaign staff for 14 years.

This case is a reminder of the lengths to which the Chinese government is willing to go to target and intimidate its critics, including launching malicious cyber operations aimed at threatening the national security of the United States and our allies, said Attorney General Merrick B. Garland . in a report.

According to the Justice Department, hackers deployed more than 10,000 emails containing hidden tracking links that could, if opened, compromise a recipient's electronic device. Their operation targeted a Justice Department official, senior White House officials and several US senators.

The Treasury Department added Wuhan Xiaoruizhi Science and Technology Company to its sanctions list and described it as a front company for China's Ministry of State Security, which ran the cyberespionage operation. The ministry has become Beijing's largest hacking operation, after a major investment by the Chinese government, according to US intelligence agencies.

The ministry, under the direct control of Chinese leaders, replaces the People's Liberation Army, which has led most of the espionage attacks on U.S. companies intended to steal corporate secrets or defense projects.

But Beijing's strategy has now evolved, and its first goal appears to be finding a way to deter, or at least slow, a military effort by Washington to help Taiwan if Chinese President Xi Jinping decides to try to take the island. .

The United States is working to both disrupt the dangerous and reckless actions of malicious cyber actors and protect our citizens and critical infrastructure, said Brian E. Nelson, Treasury Department Under Secretary for Terrorism and Intelligence. financial. The department also imposed sanctions on two Chinese nationals for their roles in cyberattacks.

Although President Biden has never mentioned the threat in public, his aides have focused intensely on an operation called Volt Typhoon that dates back several years but has intensified since early last year. In recent months, the United States has worked intensively with American companies crucial to American infrastructure, and even issued a detailed warning last week on how to detect Chinese intrusions into critical systems.

But Monday's announcement goes well beyond power grids and water systems. He cited a defense contractor that makes flight simulators for the U.S. military, a Tennessee-based aerospace and defense contractor and an Alabama-based aerospace and defense research company.

The sanctions against China come as the Biden administration attempts to stabilize relations with Beijing, seeking areas of cooperation to combat the flow of fentanyl and combat climate change. That effort began with Mr. Biden's meeting with Mr. Xi in California late last year, during which he warned Mr. Xi against intrusions into U.S. infrastructure. Chinese authorities have denied any involvement.

Still, the administration is trying to combine increased pressure with continued dialogue. Treasury Secretary Janet L. Yellen is expected to make her second trip to China in the coming months.