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Chinese military members charged with cyber-espionage against U.S. firms Chinese military members charged with cyber-espionage against U.S. firms
(35 minutes later)
The Justice Department on Monday charged members of the Chinese military with conducting economic cyber-espionage against American companies, marking the first time that the United States has leveled such criminal charges against a foreign country.The Justice Department on Monday charged members of the Chinese military with conducting economic cyber-espionage against American companies, marking the first time that the United States has leveled such criminal charges against a foreign country.
In a news release, Attorney General Eric H. Holder Jr. said: “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global marketplace should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets.” Industries targeted by the alleged cyberspying ranged from nuclear to steel to solar energy, officials said. In some cases, they said, the hacking by a military unit in Shanghai was conducted for no other reason than to give a competitive advantage to Chinese companies, including state-owned enterprises.
In a news conference, Attorney General Eric H. Holder Jr. said: “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. Success in the global marketplace should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets.”
Holder said the Obama administration “will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”Holder said the Obama administration “will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”
China’s Foreign Ministry did not immediately respond to requests for comment.China’s Foreign Ministry did not immediately respond to requests for comment.
The indictment against members of the People’s Liberation Army follows vows by senior administration officials to hold other nations to account for computer theft of intellectual property from American industry.The indictment against members of the People’s Liberation Army follows vows by senior administration officials to hold other nations to account for computer theft of intellectual property from American industry.
China is widely seen as the nation that has been most aggressive in waging cyber-espionage against the United States.China is widely seen as the nation that has been most aggressive in waging cyber-espionage against the United States.
Named in the case as defendants were Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu and Gu Chunhui, all officers of Unit 61398 of the 3rd Department of the People’s Liberation Army. Wang is also known as UglyGorilla, his hacker handle. Gu used the alias KandyGoo and Sun was also known as Jack Sun, prosecutors said. Holder said a federal grand jury in Pittsburgh returned an indictment against five members of a Chinese military unit in a Shanghai building, accusing them of conspiring together and with others to hack into the computers of six US. entities. Named in the case as defendants were Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu and Gu Chunhui, all officers of Unit 61398 of the 3rd Department of the People’s Liberation Army. Wang is also known as UglyGorilla, his hacker handle. Gu used the alias KandyGoo and Sun was also known as Jack Sun, prosecutors said.
Victimized by the cyberspying were Westinghouse Electric, Alcoa, Allegheny Technologies Inc., United States Steel, the United Steel Workers Union and Solar World, officials said. Alcoa is the largest aluminum company in the United States, and U.S. Steel is the nation’s largest steel company.
In addition to Holder, officials participating in a news conference to announce the charges include John Carlin, assistant attorney general for national security; David Hickton, the U.S. attorney for the Western District of Pennsylvania, based in Pittsburgh; and Robert Anderson, executive associate director of the FBI.In addition to Holder, officials participating in a news conference to announce the charges include John Carlin, assistant attorney general for national security; David Hickton, the U.S. attorney for the Western District of Pennsylvania, based in Pittsburgh; and Robert Anderson, executive associate director of the FBI.
The charges are being brought in western Pennsylvania, where several companies that were allegedly victimized are located. Authorities are expected to name the companies and the hackers, officials said. The charges are being brought in western Pennsylvania, where several companies that were allegedly victimized are located.
“This case should serve as a wakeup call” on the seriousness of the ongoing cyber threat, Holder said.
Carlin said that in the past, Chinese government officials have challenged the United States to produce charges that could stand up in a court of law.
“Well, today we are,” he said.
“This 21st century burglary has to stop,” Hickton said. “Hacking, spying and cyberthreats for commercial advantage can and will be prosecuted criminally even when the defendants are state actors.”
In response to a question, Hickton said, “This cyber hacking leads directly to the loss of jobs here in the United States.”
In 2012, the Justice Department’s National Security Division began training hundreds of prosecutors to combat and prosecute cyber-espionage that poses a threat to national security. Later that year, Carlin, then principal deputy assistant attorney general, told Defense News that “you’ll see a case brought.”In 2012, the Justice Department’s National Security Division began training hundreds of prosecutors to combat and prosecute cyber-espionage that poses a threat to national security. Later that year, Carlin, then principal deputy assistant attorney general, told Defense News that “you’ll see a case brought.”
Even if a prosecution never materializes, the indictment will send a powerful message that such acts will not be tolerated, officials said.Even if a prosecution never materializes, the indictment will send a powerful message that such acts will not be tolerated, officials said.
Estimates of the economic costs to the United States of commercial cyber-espionage range from $24 billion to $120 billion annually. China is by far the country that engages in the most such activity against the United States, according to a U.S. national intelligence estimate.Estimates of the economic costs to the United States of commercial cyber-espionage range from $24 billion to $120 billion annually. China is by far the country that engages in the most such activity against the United States, according to a U.S. national intelligence estimate.
Senior U.S. officials have repeatedly warned China that its continued pilfering of intellectual property to benefit its industries will harm the two countries’ bilateral relationship.Senior U.S. officials have repeatedly warned China that its continued pilfering of intellectual property to benefit its industries will harm the two countries’ bilateral relationship.
In February 2013, the U.S. security firm Mandiant reported that it had linked a specific unit of the People’s Liberation Army to cyber-intrusions of more than 140 U.S. and foreign companies and entities.In February 2013, the U.S. security firm Mandiant reported that it had linked a specific unit of the People’s Liberation Army to cyber-intrusions of more than 140 U.S. and foreign companies and entities.
The United States and China agreed last year to begin holding regular, high-level talks on cybersecurity and commercial espionage. But whenever U.S. officials raise the issue of economic spying, the Chinese are not receptive, administration officials said. Though Washington takes pains to distinguish between foreign intelligence gathering and spying to help a country’s own industries gain an economic advantage, officials say that is a distinction without a difference to the Chinese.The United States and China agreed last year to begin holding regular, high-level talks on cybersecurity and commercial espionage. But whenever U.S. officials raise the issue of economic spying, the Chinese are not receptive, administration officials said. Though Washington takes pains to distinguish between foreign intelligence gathering and spying to help a country’s own industries gain an economic advantage, officials say that is a distinction without a difference to the Chinese.
The leaks from former National Security Agency contractor Edward Snowden beginning last June have only complicated the talks. Beijing has pointed to disclosures by Snowden of vast NSA surveillance activities — including spying on Chinese companies — to assert that the United States is the greater aggressor in the area.The leaks from former National Security Agency contractor Edward Snowden beginning last June have only complicated the talks. Beijing has pointed to disclosures by Snowden of vast NSA surveillance activities — including spying on Chinese companies — to assert that the United States is the greater aggressor in the area.