The United States (US) and its Western allies have accused China of a large-scale hack on the Microsoft Exchange email software server that affected tens of thousands of private and public entities earlier this year. They also took aim at ransomware and other illicit cybercrimes by criminal hackers associated with the Chinese government.
The US was joined by a broad range of coalition partners, including members of the North Atlantic Treaty Organization (NATO), the European Union (EU), Australia, the United Kingdom (UK), Canada, Japan and New Zealand, in making these allegations against China. “The compromise and exploitation of the Microsoft Exchange server undermined the security and integrity of thousands of computers and networks worldwide,” the Council of the European Union said in a statement published on Monday.
The multiple cyberthreats from Beijing also included a ransomware attack by Chinese government-affiliated hackers who demanded millions of dollars from their targeted victims in the US and elsewhere. The US officials also divulged that the criminal contract hackers associated with China’s Ministry of State Security have engaged in cyber-extortion schemes and theft for personal profit.
Reuters reported that at an event about the administration’s infrastructure plan, US President Joe Biden told reporters: “My understanding is that the Chinese government, not unlike the Russian government, is not doing this themselves, but are protecting those who are doing it. And maybe even accommodating them being able to do it.”
Although the US has not taken any punitive measures against China in the form of sanctions, it has banded together with several allies in condemnation of the activities as part of a “pattern of irresponsible behaviour in cyberspace,” AP quoted a senior Biden administration official saying. In addition, White House spokesperson Jen Psaki, at her daily briefing, said that more measures from Washington could follow. “We are not holding back, we are not allowing any economic circumstance or consideration to prevent us from taking actions...also we reserve the option to take additional action,” she said.
In light of the allegations, the US Department of Justice on Monday charged four Chinese nationals, including three security officials and one contract hacker, for targeting dozens of companies, universities and government agencies in the US and abroad. According to the Justice Department’s indictment, the hacking, allegedly sponsored by China’s Ministry of State Security, focused on extracting information that would greatly benefit Chinese companies and businesses, including research and development processes. The Department added that the hacking campaign targeted trade secrets in industries including aviation, defence, education, government, health care, biopharmaceutical and maritime.
While US Secretary of State Antony Blinken stated that the attacks posed “a major threat to our economic and national security,” the Chinese embassy in Washington retaliated by calling the allegations a “malicious smear.” Liu Pengyu, a spokesperson for the Chinese Embassy, criticised the accusations against China as “irresponsible.” “The Chinese government and relevant personnel never engage in cyber-attacks or cyber theft,” Liu said in a statement.