Chinese Hackers Breach US Office Reviewing Foreign Investments

Three US officials familiar with the matter told CNN that Chinese hackers have breached the US government office tasked with assessing foreign investments for national security threats.

Beijing’s keen interest in spying on a US government office with broad powers to obstruct Chinese investment in the US is underscored by the theft, which has not previously been reported. This is particularly relevant given the high tensions between the world’s two superpowers.

The hackers’ breach represented a larger assault on the unclassified system of the Treasury Department. In December, the Committee on Foreign Investment in the United States (CFIUS)—specifically targeted by the hackers—gained increased powers to evaluate real estate deals close to US military bases.

Concerns about potential surveillance activities by the Chinese government or its representatives related to land purchases near these bases have been increasingly voiced by national security officials and lawmakers in the United States.

Various alleged Chinese cyber-espionage efforts in the past year have unsettled the US government. This poses a significant challenge for the incoming Trump administration.

Treasury Department Responds to Chinese Hackers with Enhanced Cyber Defenses

CNN previously reported that a specific Chinese cyber group was able to infiltrate US telecom networks, allowing them to eavesdrop on the phone conversations of prominent US political figures, including President-elect Donald Trump.

Treasury disclosed the hack of unclassified information to legislators last week, and US officials are currently in a state of panic as they attempt to evaluate the potential impact on national security.

According to two US officials who spoke with CNN, the hackers also targeted the Treasury’s sanctions office. Last week, the office imposed sanctions on a Chinese company for its suspected role in cyberattacks.

Similar cybersecurity concerns have been raised in various regions, including places like 울산op, where digital infrastructure is increasingly being scrutinised for vulnerabilities.

The Washington Post was the first to identify the sanctions office as a target. However, the details of the information stolen from Treasury servers have not yet been revealed.

A US official mentioned that they are assessing the individual documents accessed by the hackers and will analyze the overall national security implications of the stolen information.

While there is no sign that classified data was compromised, there is concern that the unclassified details, when aggregated, could provide valuable intelligence to China.

A spokesperson for the Treasury Department declined to address enquiries regarding the hackers’ targeting of CFIUS and instead provided a previous statement from the department.

Last month, hackers gained remote access to multiple Treasury user workstations and some unclassified documents by compromising a third-party service provider, as stated by a Treasury spokesperson.

According to the statement, the department has collaborated with law enforcement partners throughout the government to evaluate the consequences of this incident, and there is no indication that the hackers have maintained access to Treasury systems or information.

“Treasury takes all threats against our systems and the data it holds very seriously,” the spokesperson stated. “Treasury has substantially enhanced its cyber defences in the past four years, and we will persist in our collaboration with both private and public sector partners to safeguard our financial system from potential threats.”

Liu Pengyu, the spokesperson for the Chinese Embassy in Washington, DC, reiterated China’s consistent denials that it participates in cyber operations.

“President Xi Jinping stated in an email that there is no evidence to support the irrational claim of the so-called ‘cyberattacks from China’ during his meeting with President Biden in Lima last year,” Liu stated.

Cyber Operations: US Military’s Offensive Strategy Against Chinese Hackers

Treasury Secretary Janet Yellen remarked that the hack “doesn’t foster confidence in our relationship [with China].” As reported by CNBC, she discussed this issue with her Chinese counterpart during a recent phone call.

Yellen is also the president of the Council of Foreign Investment in the United States (CFIUS), comprised of multiple cabinet officials, including the Secretaries of Defense and Homeland Security.

Once relatively unknown, CFIUS has risen to prominence due to the complications in US-China competition, which now includes business dealings in more remote areas of the United States.

A company that acquired land in a county near a critical Air Force base in California for hundreds of millions of dollars was the subject of a CFIUS inquiry, which CNN first reported on in 2023.

Rep. Mike Waltz, the prospective national security adviser, and Sen. Marco Rubio, Trump’s nominee for secretary of state, are among the numerous Cabinet members and senior staff members who have advocated for more stringent measures against China due to national security concerns.

U.S. military and intelligence agencies are already conducting offensive cyber operations against China, but Waltz advocates for increased efforts.

Waltz stated on X last month that “America cannot continue to rely solely on cyber defence.” “We must take the initiative and impose costs on those who are stealing our technology and attacking our infrastructure.”