Tags: China | cyber | attacks | companies

US Readies Response Against Cyber Attacks from China

By John Morgan   |   Thursday, 25 Apr 2013 12:51 PM

The United States has done little to combat Chinese cyber attacks because American corporations are greedy for the growth that China can offer them, but that may be about to change, according to The Fiscal Times.

Some of the very U.S. companies that have been hit by Chinese hackers are fearful of the financial consequences if they stand up to the intrusions, according to The Times.

Meanwhile, the Obama administration’s “overdue pushback” on cyber theft could yet undermine American companies’ determination to curry favor with the Chinese.

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“Like gasoline siphoned from a tank, enormous intellectual capital has been stolen from the United States. As China has become increasingly brazen about its cyber intrusions — targeting not only businesses but government installations of all kinds — the U.S. is finally cracking down,” The Times noted.

As an example of American corporate pandering, the Times reported Blackstone founder Steve Schwartzman recently established a large scholarship for Beijing’s Tsinghua University.

The fund hopes to raise $300 million from Blackstone and participating donors, such as JPMorgan Chase, Caterpillar Tractor and Boeing, all of whom are doing business in China.

The Obama administration is considering possible responses to the ongoing cyber hacking attacks on U.S. interests, including trade sanctions, diplomatic pressure, indictments of Chinese nationals in U.S. courts and cyber countermeasures, The Wall Street Journal reported.

The change in Washington’s attitude came after new intelligence showing the Chinese military directing cyber spying campaigns, and a change in U.S. companies' willingness to acknowledge Chinese computer attacks, The Journal said.

As China’s economy becomes more advanced, it is widely expected to migrate toward producing more sophisticated goods and services.

“This they will do, and they will steal U.S. technology to do it,” The Times predicted.

“It is time for the U.S. government, and U.S. corporations, to take the long view and get tough. This may be difficult for U.S. companies that operate in China on sufferance, but it is essential.”

Meanwhile, Chinese hackers suspected of carrying out a cyber attack on the New York Times earlier this year might be re-launching their campaign, according to SkyNews.

Defense contractor BAE System told SkyNews it has uncovered evidence that the group is active for the first time since February, when the hackers were accused of being linked to a Chinese military unit in Shanghai.

Gen. Fang Fenghui, the Chinese army's chief of the general staff, said at a news conference recently that China is also a victim of cybercrimes and that it is “strongly against any kind of cyber attacks.”

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