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US charges 5 Chinese officials in cyberspying case

TaiShang

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Looks like the US has the very thick skin to throw mud at others while their face is all covered with lies and hypocrisy.

China must take strong measures against this otherwise the US will think they now re-gained the moral high ground.

US charges 5 Chinese officials in cyberspying case

A grand jury in the United States has indicted five members of the Chinese military with hacking into American computer networks and engaging in cyber espionage on behalf of a foreign government.

A grand jury in the United States has indicted five members of the Chinese military with hacking into American computer networks and engaging in cyber espionage on behalf of a foreign government.

The individuals — all allegedly officers of an elite cyber squad within the People’s Liberation Army, US federal prosecutors said Monday — are accused of hacking six American entities and stealing valuable trade secrets and other sensitive business information on behalf of China.

Among those that were targeted, the Department of Justice says, are nuclear technology developer Westinghouse and a large integrated specialties metal company headquarter in Pittsburgh, Pennsylvania, as well as the computer system of a major steelworkers union.

According to US officials, the hackers are all members of the PLA’s prestigious but highly secretive Unit 61398, which a well touted investigation conducted in by cybersecurity firm Mandiant in 2013 revealed to be responsible for targeting no fewer than 141 companies across 20 major industries, including Lockheed Martin, the Chertoff Group and Coca-Cola, all from a 12-story office building in Shanghai.

“We allege that members of Unit 61398 conspired to hack into computers of six US victims to steal information that would provide an economic advantage to the victim’s competitors, including Chinese, state-owned enterprises,” said John P Carlin, the assistant attorney general for the Federal Bureau of Investigation’s national security division, at Monday’s announcement.

“For the first time,” Carlin continued, “we are exposing the faces and names behind the keyboards in Shanghai used to steal from American businesses.”

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PLA officers maintained unauthorized access to victim’s computers, US Attorney General Eric Holder said at Monday’s announcement, “useful to competitors in China, including state-owned enterprises.” Once those systems were breached, the hackers are alleged to have taken trade secrets and sensitive internal communications, which federal prosecutors say were used to give China a competitive edge over American business opponents.

In a summary of the alleged conduct released by the DOJ on Monday, the hackers are accused of using an array of techniques to target the victims, including sending malicious code and attempting to phish sensitive details from employees, sometimes in the midst of negotiations between industry partners in the US and China.

Speaking to reporters during the event, Holder said “the alleged hacking appears to have been conducted for no other reason” than to benefit state-owned businesses competitors in China.

“The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response,” Holder added in a DOJ statement. “Success in the global market place should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets. This administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”

In response to this allegations Chinese foreign ministry announced that it is suspending activities of Sino-US internet working group, according to Reuters.

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A grand jury in the Western District of Pennsylvania charges thatWang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu and Gu Chunhui participated in the hacks as officers of Unit 61398 within the Third Department of the PLA. Between 2006 and 2014, the indictment alleges, they targeted the networks of Westinghouse Electric Co., US subsidiaries of SolarWorld AG, United States Steel Corp. , Allegheny Technologies Inc. (ATI), the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and Alcoa Inc.

In all, the PLA agents are charged with 31 counts apiece, including multiple counts under the US Computer Fraud and Abuse Act and allegations of aggravated identity theft, trade secret theft and economic espionage.

Earlier this year, secret documents revealed by former National Security Agency contractor Edward Snowden suggested that the NSA has targeted not only the government of China, but also telecom giants, banks and top fedral officials. Specifically the US intelligence agency targeted the world's second-largest network equipment supplier, Huawei Technologies.

At Monday’s event, however, Holder quoted US President Barack Obama as having said: “We do not collect intelligence to provide a competitive advantage to US companies or to the US commercial sector.”

But businesses and government officials alike from around the globe have critiqued those assurances from the Obama administration, though, particularly in the wake of Snowden leaks that indeed suggested that the US has engaged in economic espionage against several foreign entities, including ones in France, Mexico, Brazil and China.

Speaking to Democracy Now! earlier this month, national security writer Glenn Greenwald said economic espionage is a critical point among allegations concerning the NSA, “not so much because the US government has vehemently denied that they engage in economic spying — though they have — and not so much because they’ve accused other countries, particularly the Chinese, of engaging in economic spying while they do it — although that, too, is true — but it shows how deceitful the US government is with its own public.”

Despite vehemently denying allegations of economic spying, Greenwald said, the NSA has nevertheless been linked to acts of espionage targeting the largest Brazilian oil company, Petrobras, as well as the World Bank and theIMFand the SWIFT banking system, among others.

"If it is true, the irony is that exactly what they are doing to us is what they have always charged that the Chinese are doing through us," William B. Plummer, the Huawei's vice president of external affairs, told the Associated Press last month.

Prior to the release last year the 2013 Mandiant’s report, the Chinese Defense Ministry issued a statement saying “it is unprofessional and groundless to accuse the Chinese military of launching cyber attacks without any conclusive evidence.”

“Groundless criticism is irresponsible and unprofessional, and it will not help to solve the problem," Hong Lei, a spokesman for the Ministry, said of the analyst when it was published, “Hacking attacks are transnational and anonymous. Determining their origins are extremely difficult. We don't know how the evidence in this so-called report can be tenable.”

***

China's reaction so far.

I am hoping for a stricter counter-measure from China.


China suspends cyber working group activities with U.S. to protest cyber theft indictment

BEIJING, May 19 (Xinhua) -- China on Monday decided to suspend activities of the China-U.S. Cyber Working Group as U.S. announced indictment against five Chinese military officers on allegation of cyber theft.

"Given the lack of sincerity on the part of the U.S. to solve issues related to cyber security through dialogue and cooperation, China has decided to suspend activities of the China-U.S. Cyber Working Group," said Foreign Ministry spokesman Qin Gang regarding the U.S. Justice Department's announcement on Monday.

The US side announced on Monday indictment against five Chinese military officers on allegation of cyber theft. This U.S. move, which is based on intentionally-fabricated facts, grossly violates the basic norms governing international relations and jeopardizes China-U.S. cooperation and mutual trust, Qin said.

China lodged protest with the US side right after the announcement, urging the US side to immediately correct its mistakes and withdraw the "indictment", he said.

The position of the Chinese government on cyber security is consistent and clear-cut. China is steadfast in upholding cyber security. The Chinese government, the Chinese military and their relevant personnel have "never engaged or participated" in cyber theft of trade secrets. The U.S. accusation against Chinese personnel is "purely ungrounded and with ulterior purpose," Qin said.

Qin said it is a fact criticized by other countries and global media that the US government and relevant departments have long been involved in large-scale and organized cyber theft as well as wiretapping and surveillance activities against foreign political leaders, companies and individuals.

China is a victim of severe U.S. cyber theft, wiretapping and surveillance activities. Large amounts of publicly disclosed information show that relevant U.S. institutions have been conducting cyber intrusion, wiretapping and surveillance activities against Chinese government departments, institutions, companies, universities and individuals, according to the spokesman.

China has, on many occasions, made serious representations with the U.S. side, Qin said, "We once again strongly urge the U.S. side to make a clear explanation of what it has done and immediately stop such kind of activities."

Qin warned that China would react further to the U.S. "indictment" as the situation evolves.
 
The Yankee will be made pay for it.

China publishes latest data of U.S. cyber attack


BEIJING, May 19 (Xinhua) -- A spokesperson for China's State Internet Information Office on Monday published the latest data of U.S. cyber attack, saying that China is a solid defender of cyber security.

The U.S. is the biggest attacker of China's cyber space, the spokesperson said, adding that the U.S. charges of hacking against five Chinese military officers on Monday are "groundless".

Latest data from the National Computer Network Emergency Response Technical Team Coordination Center of China (NCNERTTCC) showed that from March 19 to May 18, a total of 2,077 Trojan horse networks or botnet servers in the U.S. directly controlled 1.18 million host computers in China.

The NCNERTTCC found 135 host computers in the U.S. carrying 563 phishing pages targeting Chinese websites that led to 14,000 phishing operations. In the same period, the center found 2,016 IP addresses in the U.S. had implanted backdoors in 1,754 Chinese websites, involving 57,000 backdoor attacks.

The U.S. attacks, infiltrates and taps Chinese networks belonging to governments, institutions, enterprises, universities and major communication backbone networks. Those activities target Chinese leaders, ordinary citizens and anyone with a mobile phone. In the meantime, the U.S. repeatedly accuses China of spying and hacking.

China has repeatedly asked the U.S. to stop, but it never makes any statement on its wiretaps, nor does it desist, not to mention make apology to the Chinese people.

After the Prism program leaked by Edward Snowden, the United States was accused by the whole world. However, it has never made retrospection, instead, it accuses others.

The spokesperson said the Chinese government opposes any kinds of cyber crimes, and any groundless accusations against the country.

If the United States goes its own way, China will take countermeasures, the spokesperson said.


 
Those companies could submit the case to court
 
Those companies could submit the case to court

It is a national security issue. To be dealt with by the state. The nature of issue does not really grant enough space for judiciary. It is cut-throat competition and adversity.

But China can, in return, indict five US intelligence agencies with cyber-spying and issue arrest orders for the heads.
 
This is a comment by mikofmal at CDF which I loved to share:

"{Perhaps they [the US] needed an attention grabbing headline to steal the thunder of what is going on at Shanghai (for CICA) and that they can't be part of it in any way? Sour grapes.}"

:)
 
Tell them we're busy right now. With the gas contract and hosting CICA. But as soon as we're done with these priorities, we can give an adequate response. Maybe downgrade diplomatic relations to the level of charge d'affaires.
 
Tell them we're busy right now. With the gas contract and hosting CICA. But as soon as we're done with these priorities, we can give an adequate response. Maybe downgrade diplomatic relations to the level of charge d'affaires.

Yankee imperialists must be made pay for it. They must see how it feels like to treat China like a third world rouge state.

1) Windows 8 banned from China's govt purchase list.

(ECNS) -- The Chinese government has excluded the latest Microsoft operating system, Windows 8, from its purchase list for computers, according to an online statement released by the central government procurement center.

All desktops, laptops and tablet computers to be purchased by state organs must be installed with operating systems other than Windows 8, said the statement released on Friday.

The statement, about supplementary purchases of office electronics, only targets computers used by government offices.

Analysts said the new rule will have little impact on Chinese manufacturers, but will be a blow to Microsoft, which is heavily marketing Windows 8.

Xinhua News agency said it is a move to ensure computer security after the shutdown of Windows XP.

Microsoft ended its support for the 13-year-old Windows XP on April 8 and advised users to upgrade to Windows 8 or get a new PC if necessary. About 70 percent of Chinese personal computers, even in critical sectors like telecommunications, are still running Windows XP.

Zhang Feng, chief engineer at the Ministry of Industry and Information Technology, said last month, "The ministry will beef up support for the development of such an OS."


Windows 8 banned from China's govt purchase list - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns


2) Academic urges China not to use Microsoft's Windows 8


An academician has urged the Chinese government and industry leaders not to adopt Microsoft's Windows 8 system, citing the security threat as a reason.

Ni Guangnan, a computer scientist from the Chinese Academy of Sciences and an academician of the Chinese Academy of Engineering, told website people.com.cn in an interview last week that Windows 8 should not be used by government or important industries in China.

China refused purchases of Windows Vista in 2006 after a government assessment confirmed that the Vista's framework left computers open to manipulation by Microsoft.

"Windows 8, based on a similar framework, has security threats far greater than Windows Vista," said Ni.

Ni also urged the Chinese government to take immediate measures to tackle the potential security loopholes in Windows XP as Microsoft announced that support for the system will end on April 8.


Academic urges China not to use Microsoft's Windows 8 - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns


3) China developing Linux-based OS after Windows XP shutdown


China will focus on the development of a new operating system (OS) based on Linux to cope with the shutdown of Windows XP, an official said on Wednesday.

Zhang Feng, chief engineer of the Ministry of Industry and Information Technology, said "the ministry will beef up support for the development of such an OS."

Microsoft ended support for the 13-year-old Windows XP on April 8 and advised users to upgrade to Windows 8 or get a new PC if necessary. About 70 percent of Chinese personal computers, even in critical sectors like telecommunications, are still running Windows XP.

"The shutdown will bring risks directly to China's basic telecommunication networks and threaten its overall security," said Zhang.

In February, Tencent, Kingsoft, Sogou and other Chinese Internet service providers said they would provide technical assistance for Windows XP users to upgrade systems and guard against risks.

Zhang advised individual users to install Chinese-made shield software to fend off possible online attacks or information leakages.

Linux is an OS assembled under the model of free and open source software development and distribution. It is a leading OS on servers, mainframe computers and super computers.

It is estimated that Linux has a market share of less than 1.5 percent worldwide, after nearly 91 percent for Windows and some eight percent for OS X.


China developing Linux-based OS after Windows XP shutdown - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

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Back in November, Cisco stock cratered after the company was forced to reset its future revenue guidance when as a result of crashing Chinese sales, it became clear that some $2 billion in quarterly revenue had been wiped away from the previous trendline.

Note: Original post at CDF. Thanks to milkofmal.
 

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