The United States imposed sanctions on Chinese hackers on Monday, accusing them of working as a front for Beijing’s top spy agency in an effort to place malware in American electric grids, water systems, and other critical infrastructure. American intelligence agencies have warned that the malware seemed to be intended for use if the United States were coming to the aid of Taiwan. The sanctions were part of a joint effort with Britain to crack down on Chinese hacking, with the Treasury Department describing malicious state-sponsored cyber actors as a significant threat to U.S. national security.
The Justice Department announced charges against seven Chinese nationals, part of a group known as Advanced Persistent Threat 31, accused of targeting American companies, government officials, political candidates, and campaign personnel for the past 14 years. The hackers deployed emails with hidden tracking links that could compromise the recipient’s devices. The Treasury Department added Wuhan Xiaoruizhi Science and Technology Company to its sanctions list, describing it as a front company for China’s ministry of state security, which ran the cyberespionage operation.
The Chinese hackers were found to have targeted a Justice Department official, high-ranking White House officials, and multiple U.S. senators with their cyberattacks. The ministry of state security has emerged as Beijing’s largest hacking operation with direct control from the Chinese leadership. The Chinese government’s strategy has evolved to deter or slow down a military effort by Washington to aid Taiwan if President Xi Jinping of China decided to try to take the island. The United States is focused on disrupting the actions of malicious cyber actors and protecting critical infrastructure.
President Biden has been focusing on an operation called “Volt Typhoon” that has intensified over the past year, working closely with American businesses crucial to infrastructure. The announcement on Monday went beyond electric grids and water systems to include defense contractors that manufacture flight simulators for the U.S. military. The sanctions on China come at a time when the Biden administration is trying to stabilize relations with Beijing, seeking cooperation on combating the flow of fentanyl and fighting climate change. Treasury Secretary Janet L. Yellen is expected to make her second trip to China in the coming months.
The escalating tensions between the United States and China reflect the broader contest between the two countries. The U.S. is taking steps to protect its critical infrastructure from cyber threats emanating from China, while also engaging in dialogue and cooperation on other issues such as combating drug trafficking and addressing climate change. The imposition of sanctions on Chinese hackers by the Biden administration is a significant move in response to ongoing cyberattacks and represents a multifaceted approach to dealing with threats to national security and critical infrastructure.
