This is your Dragon's Code: America Under Cyber Siege podcast.

Hey there, I'm Ting, and welcome to Dragon's Code. Today, we're diving into the latest on China's cyber operations targeting US infrastructure. It's been a wild week, folks.

Just a few days ago, on January 10, a state-sponsored cyberattack by the Chinese Communist Party (CCP) hit the US Treasury Department. This wasn't just any attack; it was a strategic move to undermine US economic competitiveness and gather sensitive intelligence. The targeted entities, the Office of Foreign Assets Control (OFAC) and the Office of the Treasury Secretary, had previously administered economic sanctions against Chinese companies involved in cyberattacks and supplying weapons to Russia for the war in Ukraine[1].

But that's not all. The CCP has been busy. In early December, Chinese-linked hackers infiltrated the US Treasury Department, marking a significant escalation in Beijing's hybrid tactics. These attacks aren't just about stealing data; they're about preparing for future conflicts, especially over Taiwan. The CCP is testing access to critical infrastructure systems, like water treatment plants and the electrical grid, to see if vulnerabilities get patched. It's like a cyber weapons test, lying in wait rather than immediately causing havoc[1][2].

The FBI's outgoing director, Christopher Wray, called China's cyber program the "defining threat of our generation." He warned that Beijing has already infiltrated critical American infrastructure and can "wreak havoc" at a whim. The FBI believes China has pre-positioned malware to target systems like natural gas pipelines and telecommunications, and has even spied on communications from high-level officials, including Donald Trump and Kamala Harris' presidential campaign[4].

So, what's being done? The US has dismantled operations by Chinese state-backed hacker groups like Volt Typhoon, which gained control of hundreds of internet routers in the US to launch attacks on critical infrastructure. The US Treasury also sanctioned Integrity Technology Group Inc., a Beijing-based cybersecurity company, for its alleged involvement in hacking attempts against the US[1][4].

The lesson here is clear: China's cyber operations are sophisticated and relentless. As Rob Joyce, former cybersecurity director at the National Security Agency (NSA), put it, these hacks serve to disrupt the US's ability to support military activities or distract us during a crisis. It's a wake-up call for the new administration to prioritize national security and foreign policy concerns.

That's it for today's Dragon's Code. Stay safe out there, and remember, in the world of cyber, vigilance is key.

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