China rejects hacking charges, accuses US of cyber espionage

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BEIJING (Associated Press) – China on Tuesday rejected an accusation from Washington and its Western allies that Beijing was responsible for hacking into the Microsoft Exchange email system and complained that Chinese entities were victims of malicious US cyber attacks.

A State Department spokesman called on Washington to drop the charges announced on Monday against four Chinese nationals accused of working with the Ministry of State Security to attempt to steal US trade secrets, technology and disease research.

The announcement that the Biden administration and European allies had formally blamed hackers linked to the Chinese government for the ransomware attacks put pressure on longstanding complaints against Beijing, but it did not include any sanctions.

“The United States has mobilized with its allies to make unwarranted accusations against Chinese cybersecurity,” said the spokesperson, Zhao Lijian. “This was made out of the blue and confused between right and wrong. It is purely politically motivated distortion and suppression.”

“China will never accept this,” Zhao said, though he did not indicate a possible retaliation.

China is a leader in electronic warfare research alongside the United States and Russia, but Beijing denies accusations that Chinese hackers are stealing trade secrets and technology. Security experts say the Ministry of Army and Security also sponsors hackers outside the government.

On Monday, US authorities said government hackers had targeted Americans and other victims with millions of dollars. Officials alleged that contract hackers associated with MSS engaged in racketeering and extortion schemes for their own profit.

Microsoft has blamed Chinese spies for the Microsoft Exchange attack that hacked tens of thousands of computers around the world. British Foreign Secretary Dominic Raab on Monday called this a “reckless but familiar pattern of behaviour”.

Also on Monday, the Justice Department announced the indictments of four Chinese nationals that prosecutors said worked with MSS to target computers at companies, universities and government agencies. The defendants are accused of targeting trade secrets, scientific technologies and infectious disease research.

“China firmly opposes and combats any form of cyber-attack, and will not encourage, support or condone any cyber-attack,” Zhao said.

Citing what he said was Chinese research in cybersecurity, Zhao accused the US Central Intelligence Agency of carrying out hacking attacks on Chinese space research facilities, the oil industry, Internet companies and government agencies over the course of 11 years.

Zhao said the attacks “severely undermined” national and economic security.

“China once again firmly demands the United States and its allies to stop cyber-theft and attacks on China, stop dumping mud on China on cybersecurity issues, and withdraw the so-called prosecution,” he said. “China will take necessary measures to firmly safeguard China’s cyber security and interests.”

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