China rejects hacking charges, accuses U.S.

BEIJING (AP) — China on Tuesday rejected an accusation by Washington and its Western allies that Beijing is to blame for a hack of the Microsoft Exchange email system and complained Chinese entities are victims of damaging U.S. cyberattacks.

A foreign ministry spokesman demanded Washington drop charges announced Monday against four Chinese nationals accused of working with the Ministry of State Security to try to steal U.S. trade secrets, technology and disease research.

The announcement that the Biden administration and European allies formally blame Chinese government-linked hackers for ransomware attacks increased pressure over longrunning complaints against Beijing but included no sanctions.

"The United States ganged up with its allies to make unwarranted accusations against Chinese cybersecurity," said the spokesman, Zhao Lijian. "This was made up out of thin air and confused right and wrong. It is purely a smear and suppression with political motives."

"China will never accept this," Zhao said, though he gave no indication of possible retaliation.

China is a leader in cyberwarfare research along with the United States and Russia, but Beijing denies accusations that Chinese hackers steal trade secrets and technology. Security experts say the military and security ministry also sponsor hackers outside the government.

On Monday, U.S. authorities said government-affiliated hackers targeted American and other victims with demands for millions of dollars. Officials alleged contract hackers associated with the MSS engaged in extortion schemes and theft for their own profit.

Microsoft Corp. blamed Chinese spies for the Microsoft Exchange attack that compromised tens of thousands of computers around the world. The British foreign secretary, Dominic Raab, on Monday called that "a reckless but familiar pattern of behavior."