China syndromeChinese hackers target government

Published 11 February 2008

The Chinese government has embarked on a massive industrial espionage campaign aimed to hasten China’s rise to global technological and economic dominance while at the same time weakening Western companies; Aussie intelligence says Australia is now also a target of that campaign

Chinese computer hackers have launched targeted attacks on classified Australian government computer networks. The cyber attacks have prompted an internal review of IT security. The federal government will spend $70 million to improve IT security this year, a figure which may well be increased after the recent spate of hackings. The attacks are thought to be part of a systematic Chinese espionage operation to glean intelligence from the Western world. As we have reported in several stories (see this 16 November 2007 HSDW story on threats to U.S. technology, and this 3 December 2007 story on Chinese industrial espionage in the United Kingdom), the Chinese government has embarked on a massive industrial espionage campaign aimed to hasten China’s rise to global technological and economic dominance while at the same time weakening Western companies. Australian intelligence is concerned of a growing level of Chinese industrial espionage in Australia.

The attacks late last year are believed to have been directed at local companies, but it is thought they were unsuccessful. Chinese authorities are believed to be seeking information on subjects such as military secrets and the prices Australian companies will seek for resources such as coal and iron ore. “I wouldn’t characterize the attempts as necessarily malicious, just routine espionage aimed at getting an advantage,” a Canberra-based intelligence source said. “It’s important to recognize that this is not a direct threat aimed at destabilizing our government, nor is this a willful effort to hinder or discredit government activity. But, do we have secrets that other governments would like to know? Yes. Are they trying? Yes. Espionage over the internet is a major battleground of the future.”

A Department of Defense spokesman would not confirm or deny the recent cyber attacks on key government agencies, while a Chinese government spokesman denied cyber espionage had been authorized for any Australian agencies.