Biden administration punishes key players in Chinese hacks

Biden administration punishes key players in Chinese hacks

The Biden administration on Friday made a final attempt to raise public awareness of the alleged widespreadChinese cyber espionage campaignto wake up. A company and an individual suspected to be behind two damaging hacking attacks on high-ranking US officials have been identified.

Aim of the measures

The aim of these measures is to create a “real cost” for hackers who “seek to undermine our democratic system and ultimately our way of life,” a senior US official told CNN. But containing China's ability to obtain sensitive information from US networks has been a challenge for decades that the Trump administration must now address.

Sanctions and their background

Friday's announcement included Treasury Department sanctions against a Chinese technology company that is said to have played a key role in a widespread security breach at major U.S. telecommunications companies. The hackers targeted the telephone communications of President-elect Donald Trump, Vice President-elect JD Vance and senior Biden administration officials.

Additionally, sanctions were imposed on a Shanghai resident suspected of involvement in a separate hack of the Treasury Department that came to light last month. The hackers targeted unclassified information from Treasury Secretary Janet Yellen and her deputy, Wally Adeyemo, to gather information, according to a source familiar with the matter. They also had access to the U.S. government office that screens foreign investments for national security risks, CNN previously reported.

Reactions from politics

A Treasury spokesman declined to comment. Bloomberg News and Politico previously reported that Yellen's information was targeted.

The sanctions were announced while Trump spoke of a “very good” phone call with Chinese President Xi Jinping. “President Xi and I will do everything we can to make the world more peaceful and secure!” wrote Trump on a social network.

The challenges facing the Trump administration

The Trump administration faces the challenge of several cabinet members or other senior staff to include those who have advocated for tougher measures against China based on security concerns, including incoming national security adviser Rep. Mike Waltz and Sen. Marco Rubio, Trump's pick for secretary of state.

Additionally, the Trump administration faces its first test of whether it will enforce a ban on Chinese social media platform TikTok, which was upheld by the Supreme Court on Friday.

Consequences of security incidents

The hacks in the telecommunications and financial sectors and their impact on national security have roiled Washington. Federal employees are changing their communication methods and relying on safer methods. MPs are calling for a major cybersecurity overhaul at major telecoms providers. Outgoing Deputy Finance Minister Adeyemo has the Congress asked for a “clear authority” to review the security practices of contractors serving the financial system. (The Treasury Department hack occurred via a software contractor.)

Offensive measures required

In response to recent Chinese hacking campaigns, Waltz has called for the U.S. government to take more offensive action in cyberspace. “We must go on the offensive and impose costs on those who steal our technology and attack our infrastructure,” he wrote on X last month.

Ongoing tensions between the USA and China

Cybersecurity tensions have long characterized U.S.-China relations but have worsened in recent months. In conversations with their Chinese counterparts, US diplomats have suggested that the scope and severity of the telecommunications attacks are exaggerated, CNN previously reported. China has rejected the allegations.

“During his meeting with President Biden in Lima last year, President Xi Jinping said that there is no evidence to support the irrational claims about the alleged cyberattacks from China,” said Liu Pengyu, spokesman for the Chinese Embassy in Washington.

Expert opinion on the sanctions

As for Friday's sanctions, some cybersecurity experts said they were necessary but insufficient to frustrate China's hacking activities. “Unfortunately, these measures are unlikely to completely deter the actors behind these attacks, but it is important to make their operations visible and create as much friction as possible,” said John Hultquist, principal analyst at Mandiant, a Google-backed cybersecurity firm.