U.S. finally acknowledges Chinese and Russian cyberthreat

By | November 4, 2011, 5:00am PDT

Summary: The difference between China and the United States is that China can execute on its grand plans unfettered by such inconveniences as democratic process or public opinion.

I have long expressed my concern over China’s behavior on the Internet, particularly their many furtive and illicit actions against U.S. citizens, U.S. companies, government agencies, and infrastructure operations. I have also discussed — particularly in some of my lectures — the prevalence of online organized crime coming out of Eastern Europe and the former Soviet states.

Yesterday, the Office of the National Counterintelligence Executive (the agency responsible for American counterintelligence efforts) issued a report to Congress entitled, “Foreign Spies Stealing U.S. Economic Secrets in Cyberspace” (PDF).

I have to tell you that I haven’t been able to read this report yet. I’ve been trying to download it, or, indeed, get to the NCIX.gov site all evening. Unfortunately, the site has been down for at least the past few hours:

I wouldn’t necessarily read a whole lot into that, but it is curious that a report that claims Russia and China have been actively engaging in cyber-spying and penetration attempts is now inaccessible.

Update: A few hours later (3:30AM ET), I was able to get onto the NCIX site. Read the report. It’s fascinating.

The Chinese government has long claimed that they have no involvement in any nefarious acts against the United States, but we’ve also got a long line of circumstantial evidence that seems to counter that assertion.

See also: Deconstructing a nasty Chinese World of Warcraft phishing scheme

In fact, in an article about the report, The Washington Post cites Chinese Embassy spokesman Wang Baodang, who denied the veracity of the NCIX report, claiming China opposes “any form of unlawful cyberspace activities.”

A New York Times article quotes Chinese Foreign Ministry spokesman Hong Lei as saying, “The Chinese government opposes hacking in all its manifestations.”

Before you accept these assertions by Chinese officials, consider that China has built jindùn gongchéng, the Golden Shield Project (what’s commonly called The Great Firewall of China). China has complete control of what IP packets pass in and out of China. And yet, even as recently as a week ago, we know people in China have been conducting attacks against American citizens. I found one in my inbox.

At the end of this article are links to many of my other articles exploring the Chinese cyber-threat. I’m in complete agreement with NCIX that China is a threat. Actually, my research indicates that China may well be America’s greatest threat moving into the rest of the 21st Century.

China now owns a tremendous amount of the world’s debt. The country has a long pattern of minor attacks and probes against our interests, including a recent possible attack on our satellites.

Most of our computers, phones, and motherboards are built in China (and they may, someday, contain potentially unknown payloads). Now, China is scaling up its game, introducing its own chips and building out its own super-computer.

See also: China steps ups its semiconductor game with homegrown supercomputer effort

My research in How To Save Jobs (free download) showed just how single-minded this nation of 1.3 billion people is in its desire to transform itself into a first-world economy. The difference between China and the United States is that China can execute on its grand plans unfettered by such inconveniences as democratic process or public opinion.

Russia, on the other hand, is a different beast.

Although Russia’s political system is once again swinging conservative, we haven’t seen as much state-sponsored cyberterrorism as we’ve seen cybercrime originating from Russian and Eastern Europe-based organized crime units. There is no doubt actors from this region are a threat, but they seem far more motivated by monetary gain than by geopolitical influence.

The bottom line, though, is this.

We are, without a doubt, in a time of increased pressure on our digital homeland security. Whether it’s because of Eastern European-based organized crime attempts to spear phish for profit or Chinese citizens supposedly acting on their own to rip off American citizens, or state-sponsored Chinese actors probing America’s military and infrastructure defenses, we find ourselves increasingly playing defense on an asymmetric battlefield.

Here are some of my other articles on this topic:

FOR YOUR SAFETY: make sure you update all your computers, including add-ons like Acrobat and Flash (don’t just click on random download links, but go to Acrobat.com by typing it into your browser!). Make sure your anti-virus definitions are up-to-date, use caution when clicking on shortened URLs, don’t visit “those” sites, and avoid opening attachments and files that could be containing nasty payloads.

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David Gewirtz, Distinguished Lecturer at CBS Interactive, is an author, U.S. policy advisor, and computer scientist. He is featured in The History Channel special The President's Book of Secrets.

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David Gewirtz

In addition to hosting the ZDNet Government and ZDNet DIY-IT blogs, CBS Interactive's Distinguished Lecturer David Gewirtz is an author, U.S. policy advisor, and computer scientist. He is featured in The History Channel special The President's Book of Secrets, is one of America's foremost cyber-security experts, and is a top expert on saving and creating jobs. He is also director of the U.S. Strategic Perspective Institute as well as the founder of ZATZ Publishing.

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RE: U.S. finally acknowledges Chinese and Russian cyberthreat
James Keenan 10th Nov
If we have learned anything from the fallout of the Cold War, it is that China and Russia, against ALL other inclinations, are completely separate. They have separate social structures, separate languages, separate philosophies, ideologies and more. There is a threat from Russian Organized Crime yes. There is an internet threat from Chinese thugs. Yes. But PLEASE: do not lump the two together based on 30 year old doctrines, prejudices and fears.
@kd5auq

And you forgot Google spying on everybody!
@kd5auq all email traversing US based servers are scanned by US government agencies...been doing that for more than a decade...DG conveniently ignores that fact. So what is less honorable...a country spying on its enemy or a country spying on its people? I guess most countries are guilty are they not?
Stop being a run of the mill sensationalist David!
Yet, we still do business with them.

This country prides itself on blowing countries up and then throwing cash at them to rebuild, yet we won't help our own people.
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Pardon my sarcasm....
sissy sue 4th Nov
@SysAdminII

But why would anyone want to help a bunch of poor people who are head over heels in debt?
@sissy sue
Because the people refusing help to the poor people helped make them poor?

Just a thought.
@SysAdminII the american people have lost control of their country a long time ago it is now in the hands of big banks and corporations with a globalist agenda, it means to end all national sovereignty, its about deindustrialization of the west and depopulation, they sell the people on BS and lies like "we can survive as a "service based economy" " instead of a resource based economy,its all lies ,yes the U.S. destroys countries and rebuilds them,yes it is the business of installing and propping up dictators and not removing them ,thats what the mega corporations and mega banks and the military industrial complex and the civilian industrial complex wants, its how they steal our money ,all your tax money goes to this corporate wellfare as does the blood bodies and limbs of your sons and daughter if they are in the ,military ,they take our tax money and hand it over to these crooks ,its all lies ,it has nothing to do with protecting the U.S. ,there is no threat, there has never been any threat ,not from iraq, not from afghanistan, not from vietnam ,not even WW2
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great firewall question
gdstark13 4th Nov
Given that internet access can come from satelites and such, does the Chinese dictatorship really have control over all internet access? Not trying to make a point...it's a sincere question...

gary
@gdstark13
Given your question gary, I think adomoe may have misunderstood what you were asking.

The Chinese dictatorship has relatively complete control over all internet access in China. While a person in China could theoretically connect to an internet satellite, they'd need a dish to do that, and possession of such a dish that works with any satellite that is not Chinese, is strictly forbidden. I think that answers your question.
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I bet China has already prepared many computers for a cyber war already. ow all of a sudden the US starts getting worried. I buying two dixie cups and string just in case it all goes south.
@jscott418 I don't think so! China doesn't want to lose their investment. They already have so much investment in the US that they already are major players. Hey! It doesn't matter whether it's Republican or Democrat. China has great influence!
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China is a threat, but...
tkejlboom 4th Nov
China as it exists now, would never ever have created the internet in the first place. Not ever. No government would ever have been able to create Google. Not one. Not one did, and not one could. While it's essential to acknowledge as a nation and as people that the government of China wishes us harm and actively works to harm us, it's also essential to realize that there is NO benefit to us in living in such a society.
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Why does China deserve our business? If we pay high wages for higher priced consumer products, people will still have the money to afford them, but the economy also strengthens. Why is everyone thinking that everyone will be broke and can't afford the cheaper consumer goods? If we can pay our workers better salaries here, they won't be any worse off at face value, but without a good national economy due to outsourced manufacturing, the middle-class are far worse off. The whole reason I think China is getting too much manufacturing is absolutely because of a deal made between the US gov't and the Chinese in trade for taking on our debt.

Just FYI: the countries with high cyberthreat involvements are also the top countries for software piracy. Question is: where do they get these poor ethics in computer usage from?
and Russian threats.

The following is something that nobody in U.S. government believes when it comes from the Chinese:

... Chinese Embassy spokesman Wang Baodang, who denied the veracity of the NCIX report, claiming China opposes any form of unlawful cyberspace activities.

The problem with the statement is that, it's open to interpretation, and hopefully, the people in Washington know that the statement is can be construed as true, but only if one considers that, the Chinese consider "unlawful cyberspace activities" to be unlawful, but, only from the point of view of what THEY consider unlawful, and so, what we might deem to be unlawful, they might consider a duty to help their homeland and their people and their government. It's all in the eye of the beholder, and very dependent upon national "self-interested" justifications.

It's all about what the meaning of "is", is.

Reagan said it best: "Trust but verify.".
Since we seem to be incapable of stopping the Chinese & Russians from stealing our data then perhaps we should charge them for all the info & data that they have stolen, thereby cancelling our financial debt to them. There, export-import imbalance solved !
and we no doubt have more spies in more places than any other country.

Not that there's anything wrong with that! But, we might end up having to pay more going out, than we'd get coming in from foreigners stealing our info/data.
@Wetneck Yes, but even then people will still want their cheap Walmart TV's, etc. Then we'd be in the same situation, after a while.
... the United States Government does not recognize it's own vulnerabilities. Homeland Security understands even less about IT than it knows about disaster recovery (as in hurricanes and snowstorms).

FEMA was created to keep the government running in the case of nuclear war. They no nothing about other kinds of threats. It was a serious mistake to put such a diverse list of threats to America's well-being in the hands of a single umbrella full of bureaucrats without specialized training.

When the Secret Service was still under the Treasury, NO ONE, and I mean NO ONE would have been able to crash a White House party.
@mwagner@... what are you talking about? thats not why fema was created , your thinking of continuity of governemnt
"China can execute on its grand plans unfettered by such inconveniences as democratic process or public opinion"

Actually, "democratic process" is now just token behaviors made while the executive and legislative branches of the US government take their directions from lobbying corporations.

Even "public opinion" is whatever dogma F*x and the corporate owners of TV and radio networks allow to be presented over ther "public" media.

Coupled with the reality that the Supreme Court allowed big Corporations to run the world, I don't see any reason our government couldn't do anything it wanted to counter the threats. Heck, they can kill anyone anywhere using a drone, intercept and data-mine any telephone and internet conversation, and keep anyone locked away forever without a trial.

As for your story's point, it's now up to the world's giant corporations to fight China's threats, expecting the US government to do nothing more than finance the battle on the backs of the populace.

The silent coup is over - life as we knew it is gone forever....
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In which case...
John L. Ries Updated - 7th Nov
@zdnet@...
...I would expect my more paranoid neighbors to start dropping like flies (the current administration isn't terribly popular where I live). In fact, while I think that lobbying and corporate influence are out of hand, I see plenty of evidence that politicians who annoy most of their constituents lose no matter how well funded they are, and people are still allowed to speak their minds without threat of physical punishment (though their employers might decide to fire them).

There's plenty of room for improvement, but in the main, we still live in a free country.

Edit: The problem with lobbying and influence peddling isn't that they cause politicians to act contrary to the wishes of their constituents (in general, they don't), but that they encourage politicians to act contrary to the interests of their constituents on issues that their constituents don't understand or pay attention to. The only real cure is for citizens to pay much closer attention to what their politicians do and why, and to put ethics ahead of party loyalty or even "the issues", per se.

Reply to boston2376:

So everybody is deluded and brainwashed, except for conspiracy theorists, such as yourself, and our erstwhile corporate masters.
@John L. Ries no thats not true ,they dont care because the corporations own them all and they know there is no choice anyways ,not on the major issues ,the banks and corporations own it all ,and they own the media ,only 4 companies own the entire media ,they manipulate ,brainwash and propagandize the population, through phony poles and other methods
so no its not just the issues people are paying attention to or not, they dont care they still go against the wishes of their constituents
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No one bombs....
archetuthus 4th Nov
No one bombs his own banker.

Until the banker finally says "No more loans."
wow unbelievable does the guy who wrote this work for the cia? this is BS nonsense fear mongering at its best, he makes it sound like he thinks the U.S. should just do whatever it wants despite democracy or what the people say or want, to protect against this imaginary threat.
if there is any cyber attack it will be done by our own government so they can impose draconian laws against the people because they know the system is falling apart because they have robed it blind,this is nonsense propaganda ,they want to impose an internet kill switch ,a great firewall of america, and government issue internet id cards for us to use the internet, there is no doubt the guy who wrote this is onboard with a tyrannical draconian Orwellian government agenda ,dont listen to this nonsense, and the idea of china stealing any secrets is laughable , we already gave or sold them everything we have ,clinton sold them the w88 ,the most advanced nuke in our arsenal and the nuclear sub that is totally silent and undetectable ,if there is any transfers of technology internet security wont have anything to do with it ,it will be sold willingly.
the cold war was all staged ,dont buy into this fear and nonsense,or we will end up with internet id cards, and a whole lot worse, if people listen to people like this.
its already bad enough i have had my FB account frozen because i refused to give them my phone # ,now g-mail does it too, and even imdb ,you cant even leave a comment about a movie without giving them your CC or phone # ,this is not about security ,its about control ,the government wants to end anonymity on the internet and track you and spy on you where ever you go ,even more than they already do, they want to control and tax and charge you for everything you say and do ,soon you will need to be biometricaly identified to even use the internet,you will be blacklisted if you speak out or make any noise of descent
facebook is cia and darpa funded now, they are already scanning twitter for signs of political descent or unrest, this is all lies ,dont believe it this is not to protect you ,it is FOR you, they are not afraid of china they are afraid of YOU, all this stuff is planned to used against YOU, wake up already
and i just saw a news story on the local abc ch5 affiliate here which is owned by hearse publishing of the famous hearse family and abc who is owned by disney, about boiometric face recognition programs to be used instead of password login ,and the story was talking about how it would be everywhere soon and how the new windows 8 will have it required for you to log in ,and how good it all is, they were trying to sell it and convince people how great it is, and then one of the anchors even went so far as to make a comment right before the end of the story like "oh yeah bimoetrics are so great, soon we wont even need cash we will just be able to use our fingerprint or iris"
unbelievable ,this is their goal to have you have to be tracked and id everywhere you go ,both online and in real life with this technology ,every move you make everything you do or buy,everywhere you go will be monitored and tracked and taxed ,people need to resist all these changes, and same goes for the push to cloud computing, this is not a good thing here people,it is an orwellian nightmare come true ,it is ultimately about control ,they have an agenda, this is not the arbitrary normal progression of technology it is is being guided, and it is no coincidence ,make no mistake it is being implemented by control freaks that are also incrementalists who will phase this stuff in over time to get you to not object to it and to accept it, the internet and these new development are fast becoming the lynch pin for the agenda of this corprate fascist government to set up their police state control grid ,its pretty bad when we cant even leave a comment on a movie without id ,and giving a call back phone # to be sent a security verification code or a CC
or to have to give a phone # for positive id to set up a g-mail address
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HERE WE GO YET AGAIN
craigkra@... 4th Nov
So once again we have more obvious anti-Chinese orientated articles. In fact, if any other country had reached the stage of defying the US Government and multinational corporate alliance then they would be receiving the same treatment.
It used to be the Soviet Union and, then there was a relatively brief interval when it became difficult to find a victim to blame the world's problems on.

Of course, Cuba was retained as a threat to "democracy", perhaps in the hope that no one would question the logic of a nation with a population of about 12 million inhabitants, no nuclear weapons and a US base on its soil actually being threat to the US, which, in addition to having a population of approximately 300 million, is the only country on the planet to have actually used nuclear weapons ??? twice ??? on non-nuclear Japan.

Assorted countries were placed on Bush???s "Axis of Evil" list and even Hollywood films, as usual, followed the trend by identifying Iran, Iraq and North Korea as the new threat. Well, we know the lies that were told to justify the attack on Iraq, another ex-ally, just like Panama, to be discarded when it no longer was of use to corporate interests. This should stand as a warning to all those who are tempted to believe in the latest updates of the same lies.

After the elimination of the World Trade Centre, the axis was generalized to target "Arabs" and China began to appear as another victim of the same propaganda.

I am pleased to see that a majority of the comments on this article show a very clear recognition of the hypocrisy that fuels it.
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The US is a democracy?
Marc Erickson 4th Nov
"The difference between China and the United States is that China can execute on its grand plans unfettered by such inconveniences as democratic process or public opinion."

Hahaha! That's the funniest thing I've read in a while! You really believe the US is still a democracry?
http://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/7364/
and just now they admit it?
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Congress needs to pass laws to Strongly Encourage Businesses to return manufacturing to U.S. soil. And very definitely critical items like routers, motherboards, chips, etc.
@mik3
And maybe a few guns, too. happy

And tennis shoes, oil, shirts, pants, socks, furniture, calculators, stereos...
In my opinion the US slipped up just after the end of the Cold War. The US won, and then walked off the field.
Since then every other player has become stronger. It might even be said that the Second Cold War was won by China.

World GDP's are driven by a populations ability to produce. Western countries have had a head start by their adaption of modern technology. Now that the rest of the world is taking up that technology (both China and India are producing more IT and engineering graduates each year more than the West - at least the US). The West now has to rely on being first on the field, and trying to be unique.

It's simple economics! The world will grow. China's middle class will want more. The West has a chance to capitalize short term supplying the Chinese economy, but an economy such as that will become the largest in the world.

Aha! Will such an economy remain Communist? I don't think so! But it won't be US Free Market!
One good thing; eventually it may become clear that the Internet doesn't allow one to have secrets. An element of secrecy is essential for most crime, corruption and everything evil. The Internet may make politicians and their mates in organized crime think twice before doing the evil deed.

And you haven't mentioned India.
@itadmin@... I don't think so! Politicians already have legislated laws like the Patriots Act, etc. And whistleblower sites they can't get at legally they starve for cash.

No! Governments have little fear of secrets being blown.
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And yet...
John L. Ries Updated - 7th Nov
@I am Gorby
...leaks from anonymous sources are routinely published in the news media (been true for over four decades), much to the annoyance of politicians and corporate executives alike.
Don't forget the NSA. They are doing the same.
It is not only the US, but anywhere that they see they may gain advantage - most of the time Western stuff.
If we have learned anything from the fallout of the Cold War, it is that China and Russia, against ALL other inclinations, are completely separate. They have separate social structures, separate languages, separate philosophies, ideologies and more. There is a threat from Russian Organized Crime yes. There is an internet threat from Chinese thugs. Yes. But PLEASE: do not lump the two together based on 30 year old doctrines, prejudices and fears.

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