The US-China Cold War Thread

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How China leads a campaign of censorship and intimidation throughout the West

How China leads a campaign of censorship and intimidation throughout the West
Russia may get the headlines, but China's reach is enough to make Moscow envious.
Dec 18, 2017, 5:11 pm
Russia may grab the headlines, but China's campaign of censorship throughout the West is beyond compare. (CREDIT: AP/ANDY WONG)
For the past few years, one foreign government, an autocratic adversary in all but name, has jailed the families of American journalists, unleashed hackers and social media trolls by the tens of thousands, and injected a campaign to silence critics throughout the West, forcing publishers to back down and convincing American academic institutions to look the other way.

This dictatorship, building a police state and cult of personality at home, has attempted to export its one-party model abroad, attracting autocrats and smothering liberal democrats at every turn – all while, if recent photo ops are anything to go by, finding a sympathetic ear in the White House.

This dictatorship, however, isn’t Russia.

It’s China.

From imprisoning spouses and siblings of American journalists to littering American academia with pro-Beijing institutes, China has led a campaign of influence and intimidation in the West that has outpaced Russia at nearly every turn. While there are no signs Beijing attempted to meddle in the recent American election to the extent Moscow did, Chinese officials have nonetheless exerted a campaign of subterfuge throughout Europe, the Americas, and Australia and New Zealand. The aim of the campaign is ending criticism wherever it may be found, and expanding China’s autocratic diktat wherever it can.

The Economist, in a cover feature this month on China’s push for censorship across the West, noted that China’s not pushing to conquer foreign territories per se, as with Russia in Ukraine or Georgia. Rather, for China “the ultimate prize is preemptive kow-towing by those whom it has not approached, but who nonetheless fear losing funding, access or influence.” Or as The Washington Post’s Josh Rogin wrote this month, “Beijing’s strategy is first to cut off critical discussion of China’s government, then to co-opt American influencers in order to promote China’s narrative.”

Exporting censorship
Indeed, while Russia has garnered much of the headlines when it comes to interference, it’s China that’s spear-headed new, arguably far more concerning means of censorship and meddling across the West. And it’s not just a matter of convincing Hollywood studios to edit out any material that would paint China in a less-than-flattering light, or setting up a troll army model that Russia would later emulate.

Certain male relatives of Radio Free Asia employees have been placed in “re-education camps” in China.

For instance, where Moscow has recently made it more difficult for American media companies to operate on Russian soil, it’s Beijing that has barred outlets like the New York Times outright – and led a campaign of imprisoning the relatives of American reporters publishing material critical of the Chinese Communist Party. Three years ago, Chinese authorities began arresting family members of Shohret Hoshur, an American journalist with Radio Free Asia. Hoshur’s coverage of China’s presence in Xinjiang, a colonial outpost along China’s western reaches – and a testing ground for Beijing’s most illiberal surveillance and police tactics against the country’s Muslim minority – tweaked Chinese authorities, who proceeded to arrest a trio of Hoshur’s brothers in retaliation for his coverage.

A spokesperson for Radio Free Asia told ThinkProgress that two of Hoshur’s brothers have since been released, but that one remains in prison. Numerous other employees of Radio Free Asia have also seen their families harassed, with certain male relatives “detained and put in re-education camps,” according to the spokesperson.

But Radio Free Asia isn’t the only outlet with American employees whose families have been targeted. Another American reporter, Chen Xiaoping – who had recently interviewed one of China’s most well-known dissidents – revealed this week that his wife has remained under police detention for months.

Wow: Mingjing's Chen Xiaoping (US citizen) known for his Guo Wengui interviews tells VOA his wife (green card holder) likely under police detention the last 3 months. https://t.co/jzj4fTm2xs

— Gerry Shih (@gerryshih) December 14, 2017

But jailing the families of American reporters on trumped-up charges is far from the only means with which Beijing has attempted to silence critics abroad. To wit, Chinese security officers have pursued Guo Wengui, a dissident currently in self-imposed exile, throughout the U.S. Earlier this year Guo, best known for his attempts at exposing corruption in the upper echelons of the Chinese Communist Party – and the subject of Xiaoping’s recent interview – encountered Chinese officials in New York, according to the Wall Street Journal, who attempted to convince Guo to end his revelations.

Guo, however, demurred, and the FBI later confronted the Chinese officials at Penn Station in New York. FBI officials effectively booted their Chinese counterparts from the U.S.

However, that wasn’t the end of Beijing’s move to silence Guo. Any number of bots bombarded those tweeting about Guo, leading, as The Daily Beast described, a surge in “harassment.”

Getting a ton of busted-English bot responses after tweeting about Trump's interest in deporting Chinese dissident Guo Wengui: pic.twitter.com/5bwir1TQsW

— Casey Michel (@cjcmichel) October 24, 2017

The Hudson Institute, a Washington-based think tank, also rescinded a planned October talk featuring Guo, following both a Shanghai-based assault on its website and pressure from Chinese officials. (Disclaimer: This reporter has worked with the Hudson Institute in the past.) The president of the Hudson Institute later said the cancellation of Guo’s event was not due to Chinese influence, but due, rather, to poor planning.

Schooled in silence
Unfortunately, Guo is by no means the lone opposition voice China has attempted to silence on American soil. A recent op-ed from Wang Dan, a Chinese dissident who helped lead the Tiananmen Square protests nearly 30 years ago, described how the “Chinese Communist Party is extending its surveillance of critics abroad, reaching into Western academic communities and silencing visiting Chinese students. Through a campaign of fear and intimidation, Beijing is hindering free speech in the United States and in other Western countries.”

One Trump advisor recently said that Trump “most admires” a trio of leaders: Turkey’s Erdogan, Russia’s Putin, and China’s Xi, all autocrats of varying flavors.

Tactics include recruiting Chinese students in Western institutes to monitor other Chinese students expressing views critical of Beijing, or even those simply “seen with political dissidents” like Wang, with family members in China subsequently threatened or abducted. Other students in the U.S. critical of Beijing have faced hacking campaigns originating in China. Due to the surveillance, Chinese students in Australia have begun requesting tutorial classes without other Chinese students.

Unfortunately, Chinese moves to censor or co-opt voices on Western campuses aren’t limited to students. In one notorious instance, Cambridge University announced in August that it would block access to certain material in its China Quarterly journal — at the behest of Beijing. One professor critical of the decision called the move a “craven, shameful and destructive concession to [China’s] growing censorship regime.” The subsequent blowback forced Cambridge to rescind its decision, reinstating material on Xi, Tiananmen Square, and the Cultural Revolution – the latter of which killed more than two million Chinese citizens. But in November, the publisher behind magazines like Nature and Scientific American also announced it would censor material critical of China.

Elsewhere, China’s Confucius Institutes, attached to dozens of universities across the U.S. – and hundreds of more abroad – have gained renewed attention for their pro-Chinese Communist Party slant, cowing school officials and pushing Beijing-friendly messaging throughout academia. Given that these Confucius Institutes are run out of official Chinese government agencies, they are, as The New York Review of Books’ Richard Bernstein wrote earlier this year, “often … set up in secretive agreements with host institutions, which has caused Western scholars to question whether their universities are ceding undue control to a foreign government – in this instance, a foreign government well known for aggressively propagandizing its official views, censoring dissenting opinions, and imprisoning those who express them.”

Not only has Beijing pressured those working out of the Confucius Institutes to toe the state’s line on controversial topics, ranging from Tibet to Taiwan to Tiananmen, but they also appear to bar members of the Falun Gong, a religious sect facing heavy persecution in China, from working, a clear violation of proscriptions against religious discrimination in the U.S. A report from the National Endowment for Democracy this month even found that taxpayers in numerous democracies fund these Confucius Institutes, helping subsidize China’s state line on any number of topics.

Perhaps unsurprisingly, China seems to have found a powerful ally in its attempt to silence criticism abroad: President Donald Trump. As The Guardian reported, Trump, when confronted with the ongoing saga surrounding Guo, referred to the dissident as a “criminal,” and initially expressed an interest in deporting Guo back to China. Trump, of course, has hardly been shy about his affinity for Chinese President Xi Jinping, who has recently consolidated more power than any leader since Mao Zedong. And the Trump administration has been pursuing policy friendly to China more broadly. (See, for instance, the administration’s move to pull back from the Trans-Pacific Partnership.) One Trump advisor recently told The Washington Postthat Trump “most admires” a trio of leaders: Turkey’s Recep Erdogan, Russia’s Vladimir Putin, and China’s Xi, all autocrats of varying flavors.
 

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Disaster Down Under
Thus far, American academia and security services have proven enough to stymie China’s efforts to smother criticism and whitewash its image abroad, at least to an extent. But there’s one model for where the U.S. may be heading if Chinese efforts prove successful: Australia.

“Australia is a bellwether. If dissent can be stifled here, then it can be stifled anywhere.”

Over the past few years, China has found perhaps its greatest successes at co-opting liberal democratic institutions in Australia. As a recent piece in The Australian read, “Beijing’s interference in Australian public life is occurring at unprecedented levels and represents an emerging, if not already widespread, form of political corruption,” with China’s efforts having “moved beyond traditional espionage and morphed into a wider assault on Australia’s institutions.” As one Australian professor said, “Australia is a bellwether. If dissent can be stifled here, then it can be stifled anywhere.”

In addition to networking Chinese nationals to monitor Chinese-Australian voices critical of Beijing, and alongside paying off Australian politicos to spout Beijing’s line, fears of Chinese retaliation recently helped curtail the publishing of a new book penned by Charles Sturt University’s Clive Hamilton. “Silent Invasion: How China Is Turning Australia into a Puppet State,” as The New York Times described, examines “an orchestrated campaign by Beijing to influence Australia and silence China’s critics,” ranging from cultivating sympathetic journalists to the transfer of intellectual property.

While the book was initially scheduled for publishing in April, an email from the head of the publishing house behind it attributed the postponement to “recent legal attacks by Beijing’s agents of influence against mainstream Australian media organizations.”

“The impact of [the publisher’s] decision was to make real, in a very personal way, the kinds of concerns that my book expresses,” Hamilton told ThinkProgress. “Suddenly I became a victim of the kinds of [Chinese] Communist Party interference that the book details in other parts of Australian society.”

Beating back Beijing
Thankfully, there may be a means of slowing Beijing’s efforts at censorship across the West – with similar tools and tactics already proposed as a means of undercutting Russia’s parallel efforts.

“I’d say this to the United States: There’s been a great emphasis on Russia, but in fact the real danger is China.”

Like Russia’s elite, Beijing’s higher-ups look primarily to the West to stash their ill-gotten gains, ranging from luxury real estate to so-called “investor visas.” A 2017 bookfrom Cambridge University’s Jason Sharman found that the U.S., Canada, and Australia remain the top destination countries for “looted wealth” thieved from China, with Beijing now the top source of real estate purchases in Australia. (At last check, nearly 20 percent of new home purchases in Sydney went to Chinese nationals.)

Like their parallel Russian networks, many of these purchases flow through shell companies to mask the origin of the funds. While Xi has overseen a nominal crackdown on grand corruption at home, tens of thousands of Chinese officials have managed to shift hundreds of billions of dollars – if not more – out of the country. That presents ample opportunity for Western governments to exert pressure on any number of Chinese officials to help slow Beijing’s creeping censorship efforts abroad.

But given Trump’s kleptocratic tendencies, any effort from the White House to crack down on Chinese efforts might have to wait until 2020. In the meantime, though, China will only continue its strategy of obliterating criticism and convincing American academics and producers to try to follow Beijing’s line. Meanwhile, Beijing will find an administration in Washington that will pay them no mind.

“I’d say this to the United States: There’s been a great emphasis on Russia, but in fact the real danger is China,” Hamilton added. “China’s economy is eleven times bigger than Russia’s. … It has deep business and financial links in the United States, it has a bigger diaspora in the United States. Really, that’s where the focus should be.”
 

Jimi Swagger

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How China leads a campaign of censorship and intimidation throughout the West

From imprisoning spouses and siblings of American journalists to littering American academia with pro-Beijing institutes, China has led a campaign of influence and intimidation in the West that has outpaced Russia at nearly every turn...

In recent history, not taught or emphasized in US industrial public school curriculum, the United States used its Boxer Rebellion reparations (paid by China to the US) from 1900 to fund Tsinghua University and the contribution of US-funded Yenching University to training future Chinese diplomats such as Huang Hua and providing a teaching position for American Edgar Snow (ironically and simultaneously with US Chinese Exclusion Act). Also, interesting how China conveniently expropriated the Yenching U. campus and turned it into the current Peking U. And the list of United States assistance to China (especially during the anti-Japanese War). Tit for tat?

Also the burning of the Old Summer Palace in Beijing during the Second Opium War by the British and French, more fuel for anti-Western attitude for good measure.

The Economist, in a cover feature this month on China’s push for censorship across the West, noted that China’s not pushing to conquer foreign territories per se, as with Russia in Ukraine or Georgia. Rather, for China “the ultimate prize is preemptive kow-towing by those whom it has not approached, but who nonetheless fear losing funding, access or influence.” Or as The Washington Post’s Josh Rogin wrote this month, “Beijing’s strategy is first to cut off critical discussion of China’s government, then to co-opt American influencers in order to promote China’s narrative.”

American corporations and Western capitalism obsession of quarter over quarter growth behaves like a rabbit hypnotized by the serpent. China, for all her faults, has always played the long game. Tim Cook and Sundar Pichai would have sent a clearer message by not attending the recent Chinese conference concerning "internet sovereignty" and leave China to itself but gains in market shares > than integrity. Not to mentioned 1/4 of all developers' revenue through Apple's App Store earned 17 billion for 1.8 million Chinese developers.

https://phys.org/news/2017-12-apple-google-chinese-internet-fest.html

Im leery of articles that come from the Podesta Group
 

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Opinion | China Is Pushing Its Luck With the West

China Is Pushing Its Luck With the West
By LUKE PATEYDEC. 27, 2017

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Christina Hägerfors
The warning bell is ringing on China’s global effort to suppress Western values and undermine the freedoms enjoyed in the world’s democracies.

Beijing has baited some of America’s leading corporations with offers of access to its giant consumer market. In return, the likes of Apple and LinkedIn have agreed to play by China’s rules and submit to what amounts to censorship.

On American college campuses, accepting money from the Beijing-backed Confucius Institute has come at the price of academic freedom: There are mounting concerns that the language and cultural centers financed by the institute prohibit discussion on issues that place China in a critical light.

Elsewhere, Beijing has been accused of pulling the strings of Western democracies. In Australia, Chinese businessmen with ties to the Chinese Communist Party have donated millions of dollars to the country’s two leading political parties in an effort to shape domestic and foreign policy. A rising political star, Sam Dastyari of the opposition Labor Party, announced his resignation from the Senate in the face of allegations that he was peddling Beijing’s positions for financial support.

But what might first appear to be signs of Beijing’s rising power are proving to be strategic missteps for China. Beijing is overreaching and starting to burn bridges across the West and in the developing world.

After two decades of expanding engagement and economic ties with Australia, China is now watching as Prime Minister Malcolm Turnbull is overhauling his country’s espionage and foreign interference laws in part to counter Chinese influence. Despite President Trump’s warm reception in Beijing last month during a state visit, the United States government has designated China as a competitor in its new national security strategy and is weighing an expansion of the Foreign Agents and Registration Act to curb propaganda and disinformation from Chinese state media and think tanks.

Even in the European Union, China’s largest trading partner, Beijing has caused anxieties to spike. Germany’s intelligence agency recently accused China of mining the personal data of German politicians and diplomats. Anders Fogh Rasmussen, the former Danish prime minister and NATO chief, as well as a free-trade-loving Scandinavian, asked the European Union to create measures to investigate and potentially restrict Chinese investments on the Continent.

This position echoes that of other European leaders who argue Beijing has kept the door closed to foreign investment in too many sectors of its economy while exploiting the openness of European markets and snatching up leading European technology companies over the past few years. Demands are growing that Beijing offer equal treatment to European companies in China.

China’s “One Belt, One Road” initiative, a grandiose trillion-dollar trade and investment strategy to reconnect Eurasia and position China at the center of the global economy, is also facing resistance. While the United States is only now waking up to the threat from Chinese money to its democracy, the developing world has long known the extent to which Beijing is willing to influence politics and societies abroad.

Pakistan, a pivotal country in the plan, has begun to question the extent and terms of its involvement, recently shelving a $14 billion hydropower dam project it felt was too costly. In Myanmar, a critical land link into China from the Indian Ocean, officials have been questioning the notion that the same large and expensive infrastructure projects that helped fuel China’s economic growth will serve as vehicles for its own development.

In Latin America, China’s global infrastructure drive has faced local demands to be more sensitive to environmental concerns, such as in Argentina, where President Mauricio Macri pushed Beijing to shrink the footprint of the hydropower dams it was building in that country. China also faced protests in Africa after Chinese construction firms have failed to conduct due diligence on land acquisition and local employment before pushing forward with new railway and road projects.

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Prime Minister Malcolm Turnbull of Australia with Premier Li Keqiang of China in Sydney in March. Democracies like Australia are taking notice of Beijing’s deepening global reach. David Gray/Agence France-Presse — Getty Images
Backlash is likely in Sri Lanka as well. After accepting Beijing’s talk of “win-win development,” and amassing billions in Chinese loans, the Sri Lankan government recently ceded control of the strategic port of Hambantota to Beijing for a 99-year lease in return for debt forgiveness. But few tenants love their landlord, particularly one that is charging you rent to live on your own land. Prominent politicians have already accused the Sri Lankan government of selling the country’s sovereignty to Beijing.

In light of this resistance, 2018 may very well see new efforts to tackle the challenge from China. Beijing’s recent intrusions may prompt more security cooperation among the so-called Quad in the Asia-Pacific: the United States, India, Japan and Australia.

Japan and India are particularly keen to find new ways to counter China’s hegemony over Asia’s waterways. And looking to make its trade less dependent on China, Europe will put a stronger focus on other large economic partners. It has already signed a new free trade agreement with Japan that will account for 40 percent of global trade.

It should be no surprise that authoritarian powers are not good at making friends, particularly with democracies, which favor open markets and freedom of speech. If Beijing seeks to calm concerns in the West over its influence in politics and society, it may need to revamp its policy that prioritizes economic gains. Instead, China would be well served to consider its own history of resentment regarding outside intervention, and look to build new cooperation and compromise with the West.

Beijing is gradually building warmer relations with Tokyo based on economic and social cooperation. This may offer a path forward for Beijing to overcome its differences with Western democracies, to disengage from political interference, and to refocus on building partnerships that can expand the trade and investment that brought it to the heights of the global economy in the first place.

China leaves 2017 with frayed relations across much of the West. If it does not pull back from these intrusions on Western democracies, the overreach will ultimately reduce China’s global power.
 

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Ex-C.I.A. Officer Suspected of Compromising Chinese Informants Is Arrested
By ADAM GOLDMANJAN. 16, 2018

merlin_132129410_3303a2a5-c0fd-4409-9f4e-0ee37982a43a-superJumbo.jpg


China killed or imprisoned several C.I.A. informants in the country starting in 2010, unraveling the agency’s source network in a devastating setback for the C.I.A. Andy Wong/Associated Press
WASHINGTON — A former C.I.A. officer suspected by investigators of helping China dismantle United States spying operations and identify informants has been arrested, the Justice Department said on Tuesday. The collapse of the spy network was one of the American government’s worst intelligence failures in recent years.

The arrest of the former officer, Jerry Chun Shing Lee, 53, capped an intense F.B.I. inquiry that began around 2012, two years after the C.I.A. began losing its informants in China. Investigators confronted an enduring mystery: How did the names of so many C.I.A. sources, among the agency’s most dearly held secrets, end up in Chinese hands?

Some intelligence officials believed that a mole inside the C.I.A. was exposing its roster of informants. Others thought that the Chinese government had hacked the C.I.A.’s covert communications used to talk to foreign sources of information.

Still other former intelligence officials have also argued that the spy network might have been crippled by a combination of both, as well as sloppy tradecraft by agency officers in China. The counterintelligence investigation into how the Chinese managed to hunt down American agents was a source of friction between the C.I.A. and F.B.I.

Mr. Lee, who left the C.I.A. in 2007 and has been living in Hong Kong and working for a well-known auction house, was apprehended at Kennedy Airport on Monday and charged in federal court in Northern Virginia with the unlawful retention of national defense information. He appeared in Brooklyn federal court on Tuesday and is being held there while awaiting transfer to Virginia. He does not have a lawyer, a Justice Department official said. The F.B.I. apparently learned that Mr. Lee was traveling to the United States and scrambled to charge him on Saturday.

In 2012, Mr. Lee left Hong Kong and returned to the United States to live with his family in Virginia. F.B.I. agents investigating him searched his luggage during a pair of hotel stays in Hawaii and Virginia, and found two small books with handwritten notes that contained classified information. It is unclear why Mr. Lee decided to risk arrest by coming to the United States this month.

Document
Read the Case Against Jerry Chun Shing Lee
Jerry Chun Shing Lee, a former C.I.A. officer, is suspected of identifying agency informants to the Chinese government, helping to cripple the United States's intelligence operations in China. Read the affidavit supporting charges against him.


OPEN Document

In the books, Mr. Lee had written down details about meetings between C.I.A. informants and undercover agents, as well as their real names and phone numbers, according to court papers. Prosecutors said that material in the books reflected the same information contained in classified cables that Mr. Lee had written while at the agency.

More than a dozen C.I.A. informants were killed or imprisoned by the Chinese government. The extent to which the informant network was unraveled, reported last year by The New York Times, was a devastating setback for the C.I.A.

Officials said the number of informants lost in China rivaled losses in the Soviet Union and Russia during the betrayals of both Aldrich Ames and Robert Hanssen, formerly of the C.I.A. and the F.B.I. They divulged intelligence operations to Moscow for years.

The C.I.A. declined to comment on Mr. Lee’s arrest.

According to court documents, Mr. Lee served in the United States Army from 1982 to 1986 and joined the C.I.A. in 1994 as a case officer. Former agency officials said he also served in China during his career. Those who knew him said he left the agency disgruntled after his career plateaued.

Prosecutors said that both before and after he and his family moved back to the United States, Mr. Lee met with former C.I.A. colleagues and other government employees.

As the agency began losing assets in China, it was not clear at first that the losses were systematic, but as the disappearances mounted, the American intelligence community eventually realized it had a major problem.

The case had frustrated counterintelligence officials in the F.B.I. and C.I.A. as they sought to determine how the Chinese had disrupted agency operations in the country.

The F.B.I. suspected an insider had revealed sensitive information to the Chinese government, a theory not initially embraced by the C.I.A. Mr. Lee eventually became a prime suspect in the hunt for a traitor.

Former intelligence officials said that the F.B.I. lured Mr. Lee back to the United States as part of a ruse and he was interviewed five times in May and June 2013. The authorities said he never disclosed the two books, described as an address book and a datebook, to investigators.

Formers officials said they were surprised that Mr. Lee came back to the United States in 2012, knowing he might be under F.B.I. suspicion. Details about the F.B.I. operation to lure him back were tightly held, but former intelligence officials said he returned with the promise of a possible contract with the C.I.A. Many former agency officers leave the agency and then return on contract. At some point after the F.B.I. interviewed him, Mr. Lee returned to Hong Kong.

Why the F.B.I. did not arrest Mr. Lee after originally finding the classified material in his notebooks remains unclear. The F.B.I. declined to comment.

Officials are concerned that Mr. Lee’s case and at least one other represent a troubling pattern of Chinese intelligence targeting former agency officials, an easier task than trying to recruit current C.I.A. operatives.

In June, a former C.I.A. officer was charged with providing classified information to China and making false statements. Prosecutors said that the former officer, Kevin Patrick Mallory, 60, of Leesburg, Va., had top-secret documents and incriminating messages on a communications device he brought back from Shanghai.

In March, prosecutors announced the arrest of a longtime State Department employee, Candace Marie Claiborne, accused of lying to investigators about her contacts with Chinese officials. According to the criminal complaint against Ms. Claiborne, who pleaded not guilty, Chinese agents wired cash into her bank account and lavished her with thousands of dollars in gifts.
 

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Chinese hackers go after think tanks in wave of more surgical strikes


Chinese hackers go after think tanks in wave of more surgical strikes
When one NGO blocked intrusion, frustrated hackers tried to knock its website offline.
Sean Gallagher - 12/21/2017, 5:45 PM

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Communists.

东方
2016 saw a significant drop-off in cyber-espionage by China in the wake of a 2015 agreement between US President Barack Obama and Chinese Premier Xi Jingping. But over the course of 2017, espionage-focused breach attempts by Chinese hackers have once again been on the rise, according to researchers at CrowdStrike. Those attempts were capped off by a series of attacks in October and November on organizations involved in research on Chinese economic policy, US-China relations, defense, and international finance. The attackers were likely companies contracted by the Chinese military, according to Adam Meyers, vice president of intelligence at CrowdStrike.

The drop in Chinese cyber-espionage may have been influenced by the 2015 agreement, reached as the US considered imposing sanctions against China. The US did so in the wake of the massive breach at the Office of Personnel Management —an operation attributed to China—and a vast economic espionage campaign in which Chinese hackers were alleged to have breached more than 600 organizations in the US over a five-year period.

But Meyers told Ars that the drop may also have been because of a reorganization of China's People's Liberation Army (PLA), in which "they did a rightsizing and reduced 300,000 positions out of the PLA," Meyers said.

ARS TRENDING VIDEO
Mark Kirasich raw interview

The disruption of the PLA's internal offensive hacking capabilities led to an increased reliance on nongovernmental entities in China to perform digital espionage—much as Russia and Iran have turned to contractors (and, in some cases, cyber-criminals) to bolster the capabilities of their intelligence organizations. The three hackers indicted in November of this year, all from the firm BoYu Information Technology Co., are an example of that trend, Meyers said.

The think tank attacks in October and November had all the hallmarks of a Chinese operation. The attackers worked largely during Beijing business hours, used tried-and-true (and widely available) tools, and were highly focused in their attempts to extract data.

"There were a few different techniques," Meyers told Ars, "but the tools were all known stuff." The attacks largely began with attempts to gain access through Internet-facing websites using the Web shell now widely known as the "China Chopper." Once in, the attacks used credential-stealing tools such as Mimikatz, which focus on Microsoft Active Directory. In one case, Myers said, the attackers used a legitimate administrative software tool to go after usernames and passwords. These tools were retrieved from a staging server using shell commands and used to move deeper into the targeted organization's networks.

Once in, the attackers searched for documents with very specific keywords, as Crowd Strike's Adam Kozy wrote in a blog post on the attacks:

Typically, the adversary also retrieved second-stage tools from an external staging server. Actors often searched for very specific strings, such as "china," "cyber," "japan," "korea," "chinese," and "eager lion"—the latter is likely a reference to a multinational, annual military exercise held in Jordan.

Eager Lion would have been of interest to China because it is a demonstration of how the US military collaborates with foreign military powers in a crisis. Information on the operation could be used to look for weak points in the US military's ability to work with other nations' forces for potential advantages, Meyers suggested—particularly if tensions in the South China Sea or with Taiwan led to the US collaborating with other regional military powers in a confrontation with China.

On at least two occasions, the attackers were observed by CrowdStrike's response team "conducting email directory dumps for a full listing of departments within the victim organizations," Kozy wrote. "Not only does this tactic help refine a list of targeted personnel within the organization, but access to a legitimate email server can provide a platform for conducting future spear-phishing operations."

Because the targeted organizations have frequent communications with Western governments, Kozy noted, harvesting email addresses and credentials for access to their mail servers could have been used for later phishing attacks against government organizations.

In one case, the attack was detected both by CrowdStrike's services team and by CrowdStrike's Falcon OverWatch threat hunting team as it began. The attackers were repeatedly thwarted as they attempted to leverage the China Chopper shell:

The operator attempted to access the server using the China Chopper shell for four days in a row, showing particular dedication to targeting this endpoint. The actor attempted several whoami requests during normal Beijing business hours. On the fourth day, after repeated failures, subsequent access attempts occurred at 11 pm Beijing time. This after-hours attempt was likely conducted by a different operator or possibly someone called in to troubleshoot the Web shell. After a quick series of tests, the activity ceased, and no attempts were made over the weekend. Except for the 11 pm login, the observed activity suggests that the adversary is a professional outfit with normal operating hours and assigned tasks.

But after being thwarted yet again in an attempt with a different shell tool, the attackers' professionalism broke down. "As they were being stopped, we saw frustration," Meyers said. "And they ended up taking it out on the [targeted] organization because of that." The attackers launched a low-grade denial-of-service attack against the Web server they had attempted to compromise as a farewell present.

"I would characterize it as unprofessional," Meyers noted, saying that the DoS attack was probably "off the books" as far as the task given the attacker by their customer. "In the post-agreement post-reorg world, if [the PLA] are relying more on outsourced resources, those outsourcers may have a lack of discipline. They took an aggressive and probably unsanctioned move."

This story has been updated with additional information from CrowdStrike to clarify comments made by Meyers.
 

Grano-Grano

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Lol. China is about to own a bunch of infrastructure in Africa but hey “keep the cacs out”.

My country has a history of doing good business with the Chinese. Europeans are only known as conquerors and colonizers.

I like to study history. Sorry


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