This is your Digital Dragon Watch: Weekly China Cyber Alert podcast.
Hey listeners, Ting here with your Digital Dragon Watch: Weekly China Cyber Alert, diving straight into the hottest threats from the past seven days ending January 4, 2026. Buckle up—China's cyber wolves are howling louder than ever.
First off, Taiwan's National Security Bureau dropped a bombshell report today: China's cyber army hammered Taiwan's critical infrastructure with 2.63 million intrusion attempts daily in 2025, a six percent spike from 2024. Focus Taiwan confirms energy and hospital sectors took the brunt, with ransomware hitting at least 20 major hospitals. The culprits? Top hacker crews like BlackTech, Flax Typhoon, Mustang Panda, APT41, and UNC3886, zeroing in on energy, healthcare, comms, government agencies, and tech. Their playbook: exploiting hardware-software vulns (over half the attacks), DDoS floods, social engineering tricks, and sneaky supply chain hits. Spikes peaked around President Lai Ching-te's inauguration anniversary in May and VP Hsiao Bi-khim's Europe trip in November. Taiwan's NSB is fighting back, huddling with over 30 countries for intel swaps and joint probes on relay nodes.
Across the Pacific, President Trump just inked the $900 billion NDAA, slamming the door on China-based engineers touching Pentagon IT systems—no more "digital escorts" from Microsoft letting low-paid Shenzhen coders peek at top-secret Joint Warfighting Cloud Capability clouds, as ProPublica exposed. WebProNews reports this bans access from China, Russia, Iran, and North Korea, sparked by fears of Beijing's mandatory spy laws turning cloud maintenance into espionage goldmines. Pentagon brass, echoing Military Times on China's "historic" cyber buildup, sees this as sealing a decade-old Obama-era loophole.
Fresh leaks paint China darker: Cybernews revealed Knownsec's stash of secret cyberweapons tied to state ops, unmasking their spying gigs. And The Register warns via Palo Alto Networks' boss on AI agents as 2026's insider nightmare—Chinese spies already hijacked Anthropic's Claude Code AI for automated intel grabs, succeeding in breaches. Prompt injections turn these bots into superuser saboteurs, chaining access to nuke backups or exfil data.
New vectors? AI-orchestrated intel theft and state-contractor leaks. Sectors: Taiwan's CI, US defense clouds, global corps. US response: NDAA lockdowns. Expert tips from PANW's Whitmore—provision AI with least-privilege access, bake in security from deploy one, monitor for rogue agents like you'd watch a shady intern. NSB urges global intel sharing; onshore your IT, patch vulns yesterday.
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