US accuses Chinese hackers of targeting infrastructure

Sanctions allege they’re working as spies for Beijing

WASHINGTON — the United States imposed sanctions monday on Chinese hackers and accused them of working as a front for Beijing’s top spy agency, part of a broad effort to place malware in US electric grids, water systems, and other critical infrastructure.

the sanctions were a major escalation of what has become an increasingly heated contest between the Biden administration and Beijing.

While there have been no cases so far in which the Chinese government has turned off essential services, US intelligence agencies have warned in recent months that the malware appeared to be intended for use if the United States were coming to the aid of taiwan.

By turning off critical services to military bases and to civilian populations, China would try, according to a series of intelligence findings, to turn Americans inward — worrying about their own supplies of electricity, food, and water rather than assisting a distant island that Beijing claims as its own.

the sanctions were part of a joint effort between the United States and Britain to crack down on Chinese hacking into vital services. In announcing the new measures, the treasury Department described malicious statesponsored cyberactors as “one of the greatest and most persistent threats to US national security.”

the sanctions were unveiled as the Justice Department announced charges against seven Chinese nationals accused of conspiracy to commit computer intrusions and wire fraud.

the hackers were part of a group known as Advanced Persistent threat 31, or APt31, that has for the past 14 years targeted American companies, government and political officials, candidates, and campaign personnel. According to the Justice Department, the hackers deployed more than 10,000 emails with hidden tracking links that could, if opened, compromise the electronic device of a recipient. their operation targeted a Justice Department official, highranking White House officials, and multiple senators.

the treasury Department added Wuhan Xiaoruizhi Science and technology Co. to its sanctions list and described it as a “front company” for China’s ministry of state security, which ran the cyberespionage operation. the ministry has emerged as Beijing’s largest hacking operation, after a major investment by the Chinese government, according to US intelligence agencies.

the ministry — under the direct control of Chinese leadership — is taking over for the People’s liberation Army, which directed most of the espionage attacks on American companies, intended to steal corporate secrets or defense designs.

But China’s strategy has now evolved, and its first goal appears to be finding a way to deter, or at least slow, a military effort by Washington to aid taiwan if China’s leader, Xi Jinping, decided to try to take the island.

the sanctions on China come as the Biden administration has been trying to stabilize relations with Beijing, seeking areas of cooperation on combating the flow of fentanyl, and fighting climate change.

In london, the British government on monday accused China of cyberattacks that compromised the voting records of tens of millions of people. the deputy prime minister, Oliver Dowden, announced sanctions against two individuals and one company linked to a state-affiliated group implicated in the attacks, which he said targeted both an elections watchdog and lawmakers. the foreign Office summoned China’s ambassador to Britain for a formal diplomatic dressing down.