This is your Digital Dragon Watch: Weekly China Cyber Alert podcast.
Listeners, Ting here—your digital dragon wrangler—coming at you with the latest on the cyber frontlines, straight from the Digital Dragon Watch. Alright, let's skip the long kung fu intro and dive right into the hot zone: China versus the world, bytes blazing.
Since last Friday, one of the spiciest dishes on the menu is the shouting match between Beijing and Washington over infrastructure hacks. Guo Jiakun, China's Foreign Ministry firebrand, is calling out the NSA by name for allegedly hammering China's National Time Service Center—a move described as “presetting vulnerabilities for future large-scale sabotage.” If that sounds intense, that's because it is. China says these attacks are "undeniable evidence" of the U.S.'s appetite for cyber mayhem, not just digital espionage but prepping for bigger blows down the line. Beijing’s official word is all out: all measures necessary to defend “cyber sovereignty and security” are in play, and they want the U.S. to knock it off, pronto.
Not to be upstaged, Washington’s own National Cyber Director Sean Cairncross told the Meridian Summit that America needs to counter China’s “attempt to export a surveillance state across planet Earth.” Cairncross argues that the United States hasn’t sent a clear enough “back off” message to Beijing, especially given recent intrusions into American infrastructure. He’s pushing for a tougher cybersecurity strategy—not 100 pages of waffle, but direct action and visible deterrence.
Meanwhile, the private sector and industrial targets are feeling this arms race in a big way. The October Trellix CyberThreat Report is out, and it's clear—a surge of China-affiliated threat actors lit up security boards in April, peaking with military drills near Taiwan. The most battered sector? Industrials, which got almost 900 victim counts, with the U.S. repping more than half of geo-identified attacks. That's factories, utilities, and sites where downtime equals dollars—or national safety. Trellix's data says these campaigns weren’t just your usual malware; there was a shift to “malware-less” insider threats and AI-driven espionage. Sectors like energy, government, and telecom are all getting uncomfortable mail from these actors.
Smishing's also gone global, courtesy of the aptly named Smishing Triad, which is flooding devices with scam texts using a Hong Kong-based attack infrastructure but U.S. cloud hosting. Since January, they've weaponized over 194,000 domains and reportedly raked in north of $1 billion in the past three years. Brokerages and banks got special attention, especially in Q2, and phishing kit sophistication is escalating fast. Palo Alto Networks and Fortra both flag that banking credentials and authentication codes are hot commodities.
On the ransomware front, Qilin—also labeled Agenda—is launching clever multi-platform attacks using remote access and backup tools, even Linux binaries on Windows hosts. This technique dulls standard defenses and lets attackers grab backup credentials before neutralizing endpoint security. Victims are mostly in the U.S., Canada, and the UK, inside manufacturing, technology, finance, and healthcare verticals. The advice? Limit remote access, monitor for oddball activity, and keep those backups off the same grid.
Expert recommendations across the board: patch critical vulnerabilities (especially Microsoft, Cisco, and Fortinet products), segment your networks, and monitor your cloud footprints like a hawk. Multi-factor authentication is not optional, and keep your security people informed about the wild AI-powered threats popping up everywhere. In the words of Trellix, AI in malware is not theoretical—it’s live and automated.
Wrapping up, tensions are high and announcements are getting shadier. Both the U.S. and China are painting the other as the villain, while the rest of us just want our systems intact. If you blink, you might miss a zero-day, but digital dragons don’t sleep—and neither should your SOC.
Thanks for tuning in to Digital Dragon Watch: Weekly China Cyber Alert. Smash that subscribe button for more cyber wisdom with Ting. This has been a quiet please production, for more check out quiet please dot ai.
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This content was created in partnership and with the help of Artificial Intelligence AI