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| U.S. Accuses Chinese Nationals of Infiltrating Corporate and Government Technology | U.S. Accuses Chinese Nationals of Infiltrating Corporate and Government Technology |
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| WASHINGTON — The Trump administration ramped up its pressure campaign on Beijing on Thursday, as the Justice Department accused two Chinese nationals with ties to the country’s Ministry of State Security of infiltrating the biggest providers of internet services and boring into government computer systems, including a major Department of Energy laboratory. | WASHINGTON — The Trump administration ramped up its pressure campaign on Beijing on Thursday, as the Justice Department accused two Chinese nationals with ties to the country’s Ministry of State Security of infiltrating the biggest providers of internet services and boring into government computer systems, including a major Department of Energy laboratory. |
| The indictment of the two men came just months after the Justice Department lured one of the Chinese intelligence agency’s officers to Belgium, where he was arrested and extradited to the United States. Both cases focus on an intelligence effort based in Tianjin to advance Beijing’s economic and geopolitical interests with an extraordinarily broad attack on Western companies and governments. | The indictment of the two men came just months after the Justice Department lured one of the Chinese intelligence agency’s officers to Belgium, where he was arrested and extradited to the United States. Both cases focus on an intelligence effort based in Tianjin to advance Beijing’s economic and geopolitical interests with an extraordinarily broad attack on Western companies and governments. |
| Just as the indictment was unsealed, Britain identified the same intelligence operation, often named APT 10 by cybersecurity firms, as responsible for separate attacks in that country and beyond. The statement from Britain’s Foreign Office was part of a new, collective effort by Western allies to call out China’s attempts to obtain trade secrets and intellectual property through a state-coordinated cyberespionage campaign, according to people involved in the planning. | Just as the indictment was unsealed, Britain identified the same intelligence operation, often named APT 10 by cybersecurity firms, as responsible for separate attacks in that country and beyond. The statement from Britain’s Foreign Office was part of a new, collective effort by Western allies to call out China’s attempts to obtain trade secrets and intellectual property through a state-coordinated cyberespionage campaign, according to people involved in the planning. |
| The allegations highlight the tension between the United States and China over what the White House says is a brazen effort by the Chinese to obtain Western technology and other proprietary information. The United States formally accused the Chinese of violating a 2015 agreement — brokered by President Barack Obama and President Xi Jinping — to cease economic espionage, saying Chinese hackers have come roaring back after two years of comity. | The allegations highlight the tension between the United States and China over what the White House says is a brazen effort by the Chinese to obtain Western technology and other proprietary information. The United States formally accused the Chinese of violating a 2015 agreement — brokered by President Barack Obama and President Xi Jinping — to cease economic espionage, saying Chinese hackers have come roaring back after two years of comity. |
| The Justice Department action also comes amid other Trump administration pressure on the Chinese. The United States helped coordinate the arrest of a top executive of Huawei, the Chinese telecom giant, on suspicion of committing fraud related to sanctions against Iran. Her arrest, while she was changing planes in Canada, has set off a geopolitical standoff, with China arresting three Canadians on its own soil. | The Justice Department action also comes amid other Trump administration pressure on the Chinese. The United States helped coordinate the arrest of a top executive of Huawei, the Chinese telecom giant, on suspicion of committing fraud related to sanctions against Iran. Her arrest, while she was changing planes in Canada, has set off a geopolitical standoff, with China arresting three Canadians on its own soil. |
| Last week, American investigators said that a long-running hack of Starwood Hotels, now part of Marriott International, was a Chinese intelligence-gathering operation. And the United States has taken steps to block Chinese investment and student enrollments in the United States. | Last week, American investigators said that a long-running hack of Starwood Hotels, now part of Marriott International, was a Chinese intelligence-gathering operation. And the United States has taken steps to block Chinese investment and student enrollments in the United States. |
| It is not clear how, if at all, the latest indictment will affect Mr. Trump’s effort to reach a trade agreement with Mr. Xi that would end an escalating tariff war between the world’s two largest economies. The United States has set a March 2 deadline to reach agreement with Beijing on a range of issues, including what the White House says is a pattern in which China has pressured American companies to hand over valuable technology and trade secrets as a condition of doing business there. | It is not clear how, if at all, the latest indictment will affect Mr. Trump’s effort to reach a trade agreement with Mr. Xi that would end an escalating tariff war between the world’s two largest economies. The United States has set a March 2 deadline to reach agreement with Beijing on a range of issues, including what the White House says is a pattern in which China has pressured American companies to hand over valuable technology and trade secrets as a condition of doing business there. |
| China’s Foreign Ministry said in a statement on its website that it does not support stealing trade secrets and that the move “seriously violates the basic norms of international relations and has severely damaged Sino-U.S. cooperation.” | |
| It said that American monitoring of foreign governments, businesses and individuals has long been an “open secret.” | |
| The statement was a reminder of how cyberspace has become a primary battleground between the two nations. | |
| The indictment unsealed on Thursday describes the broad outlines of what it calls a yearslong campaign by China to steal American technological secrets in a range of industries to allow Beijing’s companies to undercut international competitors and help its military erode the United States’ defensive edge. That echoes a previous indictment against officers of the People’s Liberation Army in 2014, who were charged with stealing a variety of industrial secrets. Safely ensconced in China, none of them have ever been arrested or brought to trial. | The indictment unsealed on Thursday describes the broad outlines of what it calls a yearslong campaign by China to steal American technological secrets in a range of industries to allow Beijing’s companies to undercut international competitors and help its military erode the United States’ defensive edge. That echoes a previous indictment against officers of the People’s Liberation Army in 2014, who were charged with stealing a variety of industrial secrets. Safely ensconced in China, none of them have ever been arrested or brought to trial. |
| In the new case, the government said it had charged two Chinese nationals, Zhu Hua and Zhang Shilong, with conspiracy to hack into computer systems and commit wire fraud and identity theft. The government accused them of targeting unnamed aviation, telecommunications, pharmaceutical and satellite companies, and said several government entities were attacked, including the Navy and NASA’s Goddard Space Flight Center and Jet Propulsion Laboratory. | In the new case, the government said it had charged two Chinese nationals, Zhu Hua and Zhang Shilong, with conspiracy to hack into computer systems and commit wire fraud and identity theft. The government accused them of targeting unnamed aviation, telecommunications, pharmaceutical and satellite companies, and said several government entities were attacked, including the Navy and NASA’s Goddard Space Flight Center and Jet Propulsion Laboratory. |
| The indictment does not describe any specific technology stolen by the group but said they “successfully obtained unauthorized access” to a range of entities, including the Lawrence Berkeley National Laboratory, an Energy Department lab in California. | The indictment does not describe any specific technology stolen by the group but said they “successfully obtained unauthorized access” to a range of entities, including the Lawrence Berkeley National Laboratory, an Energy Department lab in California. |
| Security firms have been tracking the Chinese hackers, Mr. Zhu, also called “Godkiller,” and Mr. Zhang, also called “Baobeilong,” for 13 years, under various names including APT10 and Stone Panda. At the National Security Agency, intelligence analysts tracked the two, along with a third Chinese hacker, whom they called “Legion Opal.” All targeted an exhaustive list of individuals and companies in aerospace and defense, naval, energy, natural resources, automotive, electronic and government sectors, as well as the occasional Chinese dissident. | Security firms have been tracking the Chinese hackers, Mr. Zhu, also called “Godkiller,” and Mr. Zhang, also called “Baobeilong,” for 13 years, under various names including APT10 and Stone Panda. At the National Security Agency, intelligence analysts tracked the two, along with a third Chinese hacker, whom they called “Legion Opal.” All targeted an exhaustive list of individuals and companies in aerospace and defense, naval, energy, natural resources, automotive, electronic and government sectors, as well as the occasional Chinese dissident. |
| But as recently as 2013, intelligence officials were not sure what to make of the hackers’ relationship to Chinese state officials. All three were based in Tianjin, and that year, a classified intelligence assessment was vague in describing any tie to Beijing. The “exact affiliation with Chinese government entities is not known, but their activities indicate a probable intelligence requirement feed,” one N.S.A. document obtained by The New York Times said. | |
| The hackers worked for private tech companies, but their targets — particularly in aerospace and defense — were of value to China’s civilian spy agency. Other targets in the energy, automotive, electronic and national resources industries closely aligned with China’s economic priorities. | The hackers worked for private tech companies, but their targets — particularly in aerospace and defense — were of value to China’s civilian spy agency. Other targets in the energy, automotive, electronic and national resources industries closely aligned with China’s economic priorities. |
| “This is outright cheating and theft, and it gives China an unfair advantage at the expense of law-abiding businesses and countries that follow the international rules in return for the privilege of participating in the global economic system,” Rod J. Rosenstein, the deputy attorney general, said at a news conference. | “This is outright cheating and theft, and it gives China an unfair advantage at the expense of law-abiding businesses and countries that follow the international rules in return for the privilege of participating in the global economic system,” Rod J. Rosenstein, the deputy attorney general, said at a news conference. |
| APT10 has rapidly changed its approaches and technology after private cybersecurity firms discovered its attacks. It constantly shifted its internet protocol, or IP, addresses to avoid detection and bypass security filters, the indictment alleged, allowing it to remain on its victims’ systems far longer. | APT10 has rapidly changed its approaches and technology after private cybersecurity firms discovered its attacks. It constantly shifted its internet protocol, or IP, addresses to avoid detection and bypass security filters, the indictment alleged, allowing it to remain on its victims’ systems far longer. |
| Between 2006 and 2018, according to the indictment, the APT10 group hacked computers in at least a dozen countries and broke into companies and the American government to steal information and data on various technologies. | Between 2006 and 2018, according to the indictment, the APT10 group hacked computers in at least a dozen countries and broke into companies and the American government to steal information and data on various technologies. |
| Beginning in 2014, APT10 began to target companies that provide computer services like cloud computing and networking support. It penetrated those networks and stole confidential business data from companies around the world, the indictment says. | Beginning in 2014, APT10 began to target companies that provide computer services like cloud computing and networking support. It penetrated those networks and stole confidential business data from companies around the world, the indictment says. |
| In doing so, the administration said, Beijing violated its 2015 agreement not to steal American technological secrets. Not only did it use the stolen information to give its companies a competitive advantage, but it also used the intelligence to rapidly advance the capabilities of the People’s Liberation Army as it worked to increase its influence in the Pacific region. | In doing so, the administration said, Beijing violated its 2015 agreement not to steal American technological secrets. Not only did it use the stolen information to give its companies a competitive advantage, but it also used the intelligence to rapidly advance the capabilities of the People’s Liberation Army as it worked to increase its influence in the Pacific region. |
| In addition to its corporate espionage, the group compromised the Navy’s computer systems, downloading the private information of more than 100,000 Navy personnel, the Justice Department said. | In addition to its corporate espionage, the group compromised the Navy’s computer systems, downloading the private information of more than 100,000 Navy personnel, the Justice Department said. |
| “China stands accused of engaging in criminal activity that victimizes individuals and companies in the United States, violates our laws and departs from international norms of state behavior,” Mr. Rosenstein said. | “China stands accused of engaging in criminal activity that victimizes individuals and companies in the United States, violates our laws and departs from international norms of state behavior,” Mr. Rosenstein said. |
| He accused China of trying to “dominate” other countries through economic espionage, and said the response “requires a strategic, whole-of-government approach to the threats that China poses.” | He accused China of trying to “dominate” other countries through economic espionage, and said the response “requires a strategic, whole-of-government approach to the threats that China poses.” |
| The legal assault on China comes as Mr. Trump tries to end a trade war with Beijing that has begun inflicting economic harm on both sides of the Pacific. But while the administration has tried to divorce trade talks from law enforcement actions, Mr. Trump has eagerly conflated the two, potentially complicating an already complex negotiation. | The legal assault on China comes as Mr. Trump tries to end a trade war with Beijing that has begun inflicting economic harm on both sides of the Pacific. But while the administration has tried to divorce trade talks from law enforcement actions, Mr. Trump has eagerly conflated the two, potentially complicating an already complex negotiation. |
| Mr. Trump has suggested that he could intervene in the Huawei case if it would help secure a trade agreement with China. And he previously intervened in another sanctions case involving a Chinese telecom firm, ZTE, which had been barred from buying American components after China’s president, Mr. Xi, personally appealed to the president. | Mr. Trump has suggested that he could intervene in the Huawei case if it would help secure a trade agreement with China. And he previously intervened in another sanctions case involving a Chinese telecom firm, ZTE, which had been barred from buying American components after China’s president, Mr. Xi, personally appealed to the president. |
| Steven Mnuchin, the Treasury secretary, said he was “cautiously optimistic” that the charges against Chinese hackers would not derail the trade negotiations. He said that while cybersecurity had been discussed, this specific situation had not been raised. | |