This is your US-China CyberPulse: Defense Updates podcast.
Listeners, Ting here—coming to you from the intersection of cyber, China, and cleverness, with a fresh pulse check on the US-China cyber tug-of-war as we cruise toward Halloween 2025. You know what’s scarier than a haunted house? A ‘Typhoon’ campaign, the name Microsoft and Auburn University’s McCrary Institute just coined for the latest state-sponsored Chinese cyber ops. Over the past week, we’ve seen Typhoon hackers targeting US critical infrastructure—think energy grids, water systems, telecommunications giants, the works. These attacks are all about disruption, not just snooping; Beijing’s playbook is evolving fast, aiming to delay military logistics or trip up everyday civilian life.
So, how is Uncle Sam fighting back? First up, the White House is prepping a new national cyber strategy, led by Sean Cairncross, our National Cyber Director. He dropped some hints at Palo Alto Networks Ignite in Virginia, promising a unified coordinating authority that ropes together federal agencies and the private sector for a whole-of-government smackdown on adversaries like China and Russia. Expect real costs for malicious behavior, not just wrist-slapping. Cairncross is betting big on public-private teamwork—vital, since most infrastructure is in corporate hands and they see the battlefield up close.
But inter-agency harmony is easier said than done. Just this month, FCC said “No thanks” to mandated telecom security rules, backing off its January push for across-the-board cybersecurity requirements. Instead, the focus shifted to voluntary collaboration, targeted measures in high-risk areas, and investigations into Chinese-aligned companies. That’s partly fallout from the Salt Typhoon espionage campaign, when China managed to lurk inside major telecom networks for ages—spooky, right? Brendan Carr from FCC says agile, legally robust enforcement works better than sweeping regulation without teeth.
Now, let’s talk about export controls—where tech policy collides with principle. The Associated Press just exposed a long-standing contradiction: US firms like Dell, Oracle, Microsoft have for years fed China’s surveillance state with servers, analytics, and cloud software. Even well-meaning export restrictions from the Commerce Department have massive loopholes: Chinese buyers dodge hardware bans by renting US cloud, keeping AI-powered policing humming. Policymakers now want to close these gaps, making cloud and software exports as tightly controlled as the chips inside.
Congress, meanwhile, has AI on its mind. The freshly passed National Defense Authorization Act (NDAA) mandates new AI-focused cyber training for military and government employees. The Department of Defense has to deliver an annual report on keeping supply chains and security tight against AI-enabled espionage and attacks. Data standards and robust access controls are coming, with exceptions for national security and privacy.
Tech isn’t standing still either. The feds, joined by NSA and CISA, published new guidance this week for hardening Microsoft Exchange Servers, collaborating globally to help defenders lock down networks against compromise. But attribution headache still looms. Beijing uses third-party firms to muddy the waters, while continuing to deny involvement and calling US warnings “politically motivated.” As McCrary Institute warns, unless international law grows stronger teeth, coordinated attributions won’t deter future cyber waves.
In short, the US response is more coordinated, more AI-savvy, and—thanks to Cairncross and his ilk—more focused on making cyber aggression genuinely painful for the perpetrators. But gaps remain, especially on export enforcement and harmonizing law among allies. China’s hackers aren’t taking a holiday, so neither can we.
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