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ted: May 7, 2013 5:26 am
US says China is stepping up cyber war
By Richard McGregor in Washington
Beijing is engaged in systematic cyber spying on the US military and private businesses to acquire technology to boost military modernisation and strengthen its capacity in any regional crisis, according to the Pentagon.
In its annual report to Congress on the People’s Liberation Army, the Pentagon gives new emphasis to the threat of cyber-espionage from China, an issue that has beenthe subject of top-level complaints to Beijing by Washington.
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The report says China “is using its computer network exploitation capability to support intelligence collection against the US diplomatic, economic, and defence industrial base sectors that support US national (military) programs”.
Although such allegations have long been directed at China, the Pentagon’s comments are perhaps the strongest yet about an issue that is raising the ire of many of Beijing’s critics in Congress.
Washington has also used cyberwarfare tactics, most notably in its battle to prevent Iran from obtaining nuclear weapons capability, but US officials have said the country does not steal commercial or technological secrets.
In its report, the Pentagon paints a picture of a formidable and highly organised adversary which is using multiple methods to acquire technology, ranging from state businesses to students to old-fashioned human espionage.
“China continues to leverage foreign investments, commercial joint ventures, academic exchanges, the experience of repatriated Chinese students and researchers, and state-sponsored industrial and technical espionage to increase the level of technologies and expertise available to support military research, development, and acquisition,” the report says.
“In 2012, numerous computer systems around the world, including those owned by the US government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military.”
The PLA is under the direct leadership of the Communist party and its head, Xi Jinping, appointed last year. Mr Xi carries the less important title of state president as well.
Numerous computer systems around the world, including those owned by the US government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military
- Pentagon report
The party also hires and fires all the senior executives of the major state-owned enterprises, arousing suspicion from China’s rivals overseas that these companies are both commercial entities and vehicles for the broader interests of the state.
The Pentagon report reiterates that the primary aim of PLA modernisation has been to ensure that Beijing prevails in any possible clash with Taiwan, which it regards as a renegade province and part of China.
But while preparing for a potential conflict in the Taiwan Strait appears to remain China’s principal focus, the military has been expanding its reach around the world and contacts with the armed forces of other countries.
“As China’s interests have grown and as it has gained greater influence in the international system, its military modernisation has also become increasingly focused on investments in capabilities to conduct a wider range of missions beyond its immediate territorial concerns,” the report says.
The PLA’s expanded role has included counter-piracy and humanitarian assistance missions as well as exercises with regional militaries.
http://www.ft.com/cms/s/0/41f930e6-b69a-11e2-93ba-00144feabdc0.html#axzz2Sa8eG312
About the Show
Government officials are calling it the biggest threat to America's economic security. Cyber spies hacking into U.S. corporations' computer networks are stealing valuable trade secrets, intellectual property data and confidential business strategies. The biggest aggressor? China. CNBC's David Faber investigates this new wave of espionage, which experts say amounts to the largest transfer of wealth ever seen —draining America of its competitive advantage and its economic edge. Unless corporate America wakes up and builds an adequate defense strategy, experts say it may be too late.
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