Cyber-espionage is a long-time Chinese national priority aimed at strengthening its geopolitical position. The experts and officials describe the Chinese model of “state- sponsored” hackers as a network of semi-independent groups conducting contract work in service of government espionage. The hackers employ a sophisticated mix of social engineering techniques, including the use of dating sites, employment sites and massaging platforms to gain victim’s trust.
Echoing similar concern, the Norwegian Intelligence Service (PST) and the National Security Agency (NSM), in its threat assessments for 2023, have highlighted that China was targeting individuals through social media and could influence the global technical landscape in the coming years. Norwegian companies have been advised to exercise caution, upscale their knowledge to avoid cyber-attacks and upgrade their security protocols to safeguard their information and personnel. This is also important in the wake of past instances of cyber attacks on websites in Norway. PST highlighted that in terms of digital network operations China, Russia, Iran and North Korea posed a threat to Norwegian interests.
Separately, Norway’s wealth fund excluded Chinese tech company Hikvision from investment due to grave human rights violations in Xinjiang. China-based companies Huawei and Hikvision are already facing accusations from the West of cyber-attacks and espionage. Denmark and Sweden have also restricted the use of Huawei equipment in their 5G infrastructure. They suspect that the company, in which the Chinese Communist Party (CCP) is a shareholder, is contracted to operate Chinese state surveillance of Uyghur Muslims.
Likewise, in November the U.S. government said it is banning telecommunications and video surveillance equipment from several prominent Chinese brands in an effort to protect the nation’s communications network. The Federal Communications Commission (FCC) voted unanimously to expand its ban on the sale and import of Chinese technology from firms that pose an "unacceptable risk to the national security" of the United States. The decision implements the directive in the Secure Equipment Act of 2021 signed by President Biden in November that places additional restrictions on companies including Huawei and ZTE, surveillance camera makers Hikvision and Dahua, and two-way radio manufacturer Hytera.
In another case of data theft by Chinese individual/entity, the Dutch company ASML, which is the world leader in the manufacturing of machines for making chips, reported to the Dutch authorities in February 2023 that in a recent incident, one of their Chinese employees had succeeded in obtaining some sensitive data of their company, thus violating certain export control regulations. Presently, there is a restriction on the export of Extreme Ultraviolet (EUV) machines made by ASML after US banned the export of high-technology to China. Majority of the chips worldwide are made with Deep Ultraviolet (DUV) machines and ASML is the only manufacturer that makes and sells DUV systems.
Therefore, ASML technology is coveted and has been targeted by the Chinese. It has unique capabilities — which no one else in the world can replicate — to produce a type of machine called an EUV lithography tool, without which making an advanced chip is simply impossible. The advanced version of DUV machines and other products may also face restrictions in view of the Chinese threat.
At the face value, these incidences of data theft might seem isolated cases, but a closer look would reveal the sinister agenda behind them. They are well connected and thought out plans to break backbone of target countries by destroying their economy and carry forward the Dragon’s state agenda.