Cyber Espionage Clash: Contrasting the US and China Perspectives
Introduction:
This Op-ed sheds light on the perspectives of the US and China regarding cyber espionage. Additionally, it seeks to analyze China's response to the US accusation regarding cyber espionage.
What is Cyber espionage?
Cyber espionage or cyber spying is the act of obtaining personal, sensitive, or proprietary information from individuals without their knowledge or consent. In an increasingly transparent and technological society, the ability to control the private information an individual reveals on the Internet and the ability of others to access that information are a growing concern. This includes storage and retrieval of e-mail by third parties, social media, search engines, data mining, GPS tracking, the explosion of smartphone usage, and many other technology considerations. In the age of big data, there is a growing concern for privacy issues surrounding the storage and misuse of personal data and non-consensual mining of private information by companies, criminals, and governments.
Cyber espionage aims for economic, political, and technological gain. Fox example Stuxnet (2010) cyber-attack by the US and its allies Israel against Iran’s Nuclear facilities. Three espionage tools were discovered connected to Stuxnet, such as Gauss, FLAME and DuQu, for stealing data such as passwords, screenshots, Bluetooth, Skype functions, etc.
Cyber espionage is one of the most significant and intriguing international challenges globally. Many nations and international bodies, such as the US and China, have created their definitions and have always struggled over cyber espionage norms.
The US Perspective
In 2009, US officials (along with other allied countries) mentioned that cyber espionage was acceptable if it safeguarded national security, although they condemned economically motivated cyber espionage. Even the Director of National Intelligence said in 2013 that foreign intelligence capabilities cannot steal foreign companies' trade secrets to benefit their firms. This stance is consistent with the Economic Espionage Act (EEA) of 1996, particularly Section 1831, which prohibits economic espionage. This includes the theft of a trade secret that "will benefit any foreign government, foreign agent or foreign instrumentality.
Second, the US advocates for cybersecurity market standards and strongly opposes transferring personal data extracted from the US Office of Personnel Management (OPM) to cybercrime markets. Furthermore, China has been reported to sell OPM data on illicit markets. It became a grave concern for the US government when the Chinese government managed to acquire sensitive details of 22.1 million US government workers through cyber intrusions in 2014.
Third, Cyber-espionage is acceptable unless it’s utilized for Doxing, which involves disclosing personal information about someone online without their consent and using it as a tool for political influence operations. However, Western academics and scholars have endeavoured to distinguish between doxing and whistleblowing. They argue that whistleblowing, exemplified by events like the Snowden Leaks and Vault 7 disclosures, serves the interests of US citizens. In the US, being regarded as an open society, certain disclosures are not promoted but rather required by mandate.
Fourth, the US argues that there is no cyber espionage against critical infrastructure during peacetime. According to the US, there are 16 critical infrastructure sectors, including chemical, nuclear, energy, defence, food, water, and so on. These sectors are considered essential to the US, and any disruption or harm would impact security, national public health and national economic security.
The US concern regarding China’s cyber espionage
According to James Lewis (a senior vice president at the Center for US-China Economic and Security Review Commission), the US faces losses between $ 20 billion and $30 billion annually due to China’s cyberespionage. The 2018 U.S. Trade Representative (USTR) Section 301 report highlighted instances, where the Chinese government and executives from Chinese companies engaged in clandestine cyber intrusions to obtaining commercially valuable information from the U.S. businesses, such as in 2018 where officials from China’s Ministry of State Security, stole trade from General Electric aviation and other aerospace companies.
China's response to the US accusations of cyber espionage
China's perspective on cyber espionage is outlined by its 2014 anti-espionage law, which was revised in 2023. Article 1 of this legislation is formulated to prevent, halt, and punish espionage actions to maintain national security. Article 4 addresses the act of espionage and does not differentiate between state-sponsored cyber espionage for economic purposes and state-sponsored cyber espionage for national security purposes. However, China doesn't make a clear difference between government-to-government hacking (spying) and government-to-corporate sector hacking, unlike the US. This distinction is less apparent in China due to its strong state-owned enterprise (SOE) sector. However, military spying is considered part of the national interest in the US, while corporate spying is considered a crime.
China asserts that the US has established cyber norms concerning cyber espionage to normalize public attribution as acceptable conduct. This is achieved by targeting China for cyber operations, imposing sanctions on accused Chinese individuals, and making political accusations, such as blaming China and Russia for meddling in US elections. Despite all this, Washington D.C has never taken responsibility for the infamous Flame and Stuxnet cyber operations, which were widely recognized as part of a broader collaborative initiative known as Operation Olympic Games between the US and Israel. Additionally, the US takes the lead in surveillance activities conducted against China, Russia, German Chancellor Angela Merkel, the United Nations (UN) Secretary-General, and several French presidents. Surveillance programs such as Irritant Horn, Stellar Wind, Bvp47, the Hive, and PRISM are recognized as tools used by the US to monitor both allies and adversaries to maintain global hegemony.
China urges the US to cease its smear campaign associated with Volt Typhoon’s cyberattack for cyber espionage, citing the publication of a report titled “Volt Typhoon: A Conspiratorial Swindling Campaign Targets with U.S. Congress and Taxpayers Conducted by U.S. Intelligence Community” by China's National Computer Virus Emergency Response Centre and the 360 Digital Security Group on 15 April. According to the report, 'Volt Typhoon' is a ransomware cyber criminal group self-identified as the 'Dark Power' and is not affiliated with any state or region. Multiple cybersecurity authorities in the US collaborated to fabricate this story just for more budgets from Congress. In the meantime, Microsoft and other U.S. cybersecurity firms are seeking more big contracts from US cybersecurity authorities. The reality behind “Volt Typhoon '' is a conspiratorial swindling campaign to achieve two objectives by amplifying the "China threat theory" and cheating money from the U.S. Congress and taxpayers.
Beijing condemned the US claims of cyber espionage without any solid evidence. China also blames the US for economic espionage by citing the European Parliament report that the National Security Agency (NSA) was also involved in assisting Boeing in beating Airbus for a multi-billion dollar contract. Furthermore, Brazilian President Dilma Rousseff also accused the US authorities of spying against the state-owned oil company “Petrobras” for economic reasons.
Conclusion
In 2015, the US and China marked a milestone as both President Xi Jinping and Barack Obama signed an agreement, committing that neither country's government would conduct or knowingly support cyber-enabled theft of trade secrets, intellectual property, or other confidential business information to grant competitive advantages to firms or commercial sectors. However, the China Cybersecurity Industry Alliance (CCIA) published a report titled 'US Threats and Sabotage to the Security and Development of Global Cyberspace' in 2024, highlighting the US escalating cyber-attack and espionage activities against China and other nations. Additionally, there has been a considerable increase in the volume and sophistication of Chinese hacking since 2016. According to a survey by the Center for International and Strategic Studies, out of 224 cyber espionage incidents reported since 2000, 69% occurred after Xi assumed office. Therefore, China and the US must address cybersecurity issues through dialogue and cooperation, utilizing bilateral and multilateral agreements.
Related Blogs
Introduction:
Former Egyptian MP Ahmed Eltantawy was targeted with Cytrox’s predator spyware through links sent via SMS and WhatsApp. Former Egyptian MP Ahmed Eltantawy has been targeted with Cytrox’s Predator spyware in a campaign believed to be state-sponsored cyber espionage. After Eltantawy made his intention to run for president in the 2024 elections known, the targeting took place between May and September 2023. The spyware was distributed using links sent via SMS and WhatsApp, network injection, and visits to certain websites by Eltantawy. The Citizen Lab examined the assaults with the help of Google's Threat Analysis Group (TAG), and they were able to acquire an iPhone zero-day exploit chain that was designed to be used to install spyware on iOS versions up to 16.6.1.
Investigation: The Ahmed Eltantawy Incident
Eltantawy's device was forensically examined by The Citizen Lab, which uncovered several efforts to use Cytrox's Predator spyware to target him. In the investigation, The Citizen Lab and TAG discovered an iOS exploit chain utilised in the attacks against Eltantawy. They started a responsible disclosure procedure with Apple, and as a consequence, it resulted in the release of updates patching the vulnerabilities used by the exploit chain. Mobile zero-day exploit chains may be quite expensive, with black market values for them exceeding millions of dollars. The Citizen Lab also identified several domain names and IP addresses associated with Cytrox’s Predator spyware. Additionally, a network injection method was also utilised to get the malware onto Eltantawy's phone, according to the study. He would be discreetly routed to a malicious website using network injection when he went to certain websites that weren't HTTPS.
What is Cyber Espionage?
Cyber espionage, also referred to as cyber spying, is a sort of cyberattack in which an unauthorised user tries to obtain confidential or sensitive information or intellectual property (IP) for financial gain, business benefit, or political objectives.
Apple's Response: A Look at iOS Vulnerability Patching
Users are advised to keep their devices up-to-date and enable lockdown Mode on iPhones. Former Egyptian MP targeted with predator spyware ahead of 2024 presidential run hence Update your macOS Ventura, iOS, and iPadOS devices, as Apple has released emergency updates to address the flaws. Apple has Released Emergency Updates Amid Citizen Lab’s Disclosure. Apple has issued three emergency updates for iOS, iPadOS (1), and macOS Ventura (2).
The updates address the following vulnerabilities:
CVE-2023-41991,
CVE-2023-41992,
CVE-2023-41993.
Apple customers are advised to immediately install these emergency security updates to protect themselves against potential targeted spyware attacks. By updating promptly, users will ensure that their devices are secure and cannot be compromised by such attacks exploiting these particular zero-day vulnerabilities. Hence it is advisable to maintain up-to-date software and enable security features in your Apple devices.
Conclusion:
Ahmed Eltantawy, a former Egyptian MP and presidential candidate, was targeted with Cytrox’s Predator spyware after announcing his bid for the presidency. He was targeted by Cytrox Predator Spyware Campaign. Such an incident is believed to be State-Sponsored Cyber Espionage. The incident raises the question of loss of privacy and shows the mala fide intention of the political opponents. The investigation Findings reveal that Ahmed Eltantawy was the victim of a sophisticated cyber espionage campaign that leveraged Cytrox’s Predator spyware. Apple advised that all users are urged to update their Apple devices. This case raises alarming concerns about the lack of controls on the export of spyware technologies and underscores the importance of security updates and lockdown modes on Apple devices.
References:
- https://uksnackattack.co.uk/predator-in-the-wires-ahmed-eltantawy-targeted-by-predator-spyware-upon-presidential-ambitions-announcement
- https://citizenlab.ca/2023/09/predator-in-the-wires-ahmed-eltantawy-targeted-with-predator-spyware-after-announcing-presidential-ambitions/#:~:text=Between%20May%20and%20September%202023,in%20the%202024%20Egyptian%20elections.
- https://thehackernews.com/2023/09/latest-apple-zero-days-used-to-hack.html
- https://www.hackread.com/zero-day-ios-exploit-chain-predator-spyware/
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Introduction
Smartphones have revolutionised human connectivity. In 2023, it was estimated that almost 96% of the global digital population is accessing the internet via their mobile phones and India alone has 1.05 billion users. Information consumption has grown exponentially due to the enhanced accessibility that these mobiles provide. These devices allow accessibility to information no matter where one is, and have completely transformed how we engage with the world around us, be it to skim through work emails while commuting, video streaming during breaks, reading an ebook at our convenience or even catching up on news at any time or place. Mobile phones grant us instant access to the web and are always within reach.
But this instant connection has its downsides too, and one of the most worrying of these is the rampant rise of misinformation. These tiny screens and our constant, on-the-go dependence on them can be directly linked to the spread of “fake news,” as people consume more and more content in rapid bursts, without taking the time to really process the same or think deeply about its authenticity. There is an underlying cultural shift in how we approach information and learning currently: the onslaught of vast amounts of “bite-sized information” discourages people from researching what they’re being told or shown. The focus has shifted from learning deeply to consuming more and sharing faster. And this change in audience behaviour is making us vulnerable to misinformation, disinformation and unchecked foreign influence.
The Growth of Mobile Internet Access
More than 5 billion people are connected to the internet and web traffic is increasing rapidly. The developed countries in North America and Europe are experiencing mobile internet penetration at a universal rate. Contrastingly, the developing countries of Africa, Asia, and Latin America are experiencing rapid growth in this penetration. The introduction of affordable smartphones and low-cost mobile data plans has expanded access to internet connectivity. 4G and 5G infrastructure development have further bridged any connectivity gaps. This widespread access to the mobile internet has democratised information, allowing millions of users to participate in the digital economy. Access to educational resources while at the same time engaging in global conversations is one such example of the democratisation of information. This reduces the digital divide between diverse groups and empowers communities with unprecedented access to knowledge and opportunities.
The Nature of Misinformation in the Mobile Era
Misinformation spread has become more prominent in recent times and one of the contributing factors is the rise of mobile internet. This instantaneous connection has made social media platforms like Facebook, WhatsApp, and X (formerly Twitter) available on a single compact and portable device. These social media platforms enable users to share content instantly and to a wide user base, many times without verifying its accuracy. The virality of social media sharing, where posts can reach thousands of users in seconds, accelerates the spread of false information. This ease of sharing, combined with algorithms that prioritise engagement, creates a fertile ground for misinformation to flourish, misleading vast numbers of people before corrections or factual information can be disseminated.
Some of the factors that are amplifying misinformation sharing through mobile internet are algorithmic amplification which prioritises engagement, the ease of sharing content due to instant access and user-generated content, the limited media literacy of users and the echo chambers which reinforce existing biases and spread false information.
Gaps and Challenges due to the increased accessibility of Mobile Internet
Despite growing concerns about misinformation spread due to mobile internet, policy responses remain inadequate, particularly in developing countries. These gaps include: the lack of algorithm regulation, as social media platforms prioritise engaging content, often fueling misinformation. Inadequate international cooperation further complicates enforcement, as addressing the cross-border nature of misinformation has been a struggle for national regulations.
Additionally, balancing content moderation with free speech remains challenging, with efforts to curb misinformation sometimes leading to concerns over censorship.
Finally, a deficit in media literacy leaves many vulnerable to false information. Governments and international organisations must prioritise public education to equip users with the required skills to evaluate online content, especially in low-literacy regions.
CyberPeace Recommendations
Addressing misinformation via mobile internet requires a collaborative, multi-stakeholder approach.
- Governments should mandate algorithm transparency, ensuring social media platforms disclose how content is prioritised and give users more control.
- Collaborative fact-checking initiatives between governments, platforms, and civil society could help flag or correct false information before it spreads, especially during crises like elections or public health emergencies.
- International organisations should lead efforts to create standardised global regulations to hold platforms accountable across borders.
- Additionally, large-scale digital literacy campaigns are crucial, teaching the public how to assess online content and avoid misinformation traps.
Conclusion
Mobile internet access has transformed information consumption and bridged the digital divide. At the same time, it has also accelerated the spread of misinformation. The global reach and instant nature of mobile platforms, combined with algorithmic amplification, have created significant challenges in controlling the flow of false information. Addressing this issue requires a collective effort from governments, tech companies, and civil society to implement transparent algorithms, promote fact-checking, and establish international regulatory standards. Digital literacy should be enhanced to empower users to assess online content and counter any risks that it poses.
References
- https://www.statista.com/statistics/1289755/internet-access-by-device-worldwide/
- https://www.forbes.com/sites/kalevleetaru/2019/05/01/are-smartphones-making-fake-news-and-disinformation-worse/
- https://www.pewresearch.org/short-reads/2019/03/07/7-key-findings-about-mobile-phone-and-social-media-use-in-emerging-economies/ft_19-02-28_globalmobilekeytakeaways_misinformation/
- https://www.psu.edu/news/research/story/slow-scroll-users-less-vigilant-about-misinformation-mobile-phones
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Introduction
In the labyrinthine world of digital currencies, a new chapter unfolds as India intensifies its scrutiny over the ethereal realm of offshore cryptocurrency exchanges. With nuance and determination that virtually mirrors the Byzantine complexities of the very currencies they seek to regulate, Indian authorities embark on a course of stringent oversight, bringing to the fore an ever-evolving narrative of control and compliance in the fintech sector. The government's latest manoeuvre—a directive to Apple Inc. to excise the apps of certain platforms, including the colossus Binance, from its App Store in India—signals a crescendo in the nation's efforts to rein in the unbridled digital bazaar that had hitherto thrived in a semi-autonomous expanse of cyberspace.
The directive, with ramifications as significant and intricate as the cryptographic algorithms that underpin the blockchain, stems from the Ministry of Electronics and Information Technology, which has cast eight exchanges, including Bitfinex, HTX, and Kucoin, into the shadows, rendering their apps as elusive as the Higgs boson in the vast App Store universe. The movement of these exchanges from visibility to obscurity in the digital storefront is cloaked in secrecy, with sources privy to this development remaining cloaked in anonymity, their identities as guarded as the cryptographic keys that secure blockchain transactions.
The Contention
This escalation, however, did not manifest from the vacuum of the ether; it is the culmination of a series of precipitating actions that began unfolding on December 28th, when the Indian authorities unfurled a net over nine exchanges, ensnaring them with suspicions of malfeasance. The spectre of inaccessible funds, a byproduct of this entanglement, has since haunted Indian crypto traders, prompting a migration of deposits to local exchanges that operate within the nation's regulatory framework—a fortress against the uncertainties of the offshore crypto tempest.
The extent of the authorities' reach manifests further, beckoning Alphabet Inc.'s Google to follow in Apple's footsteps. Yet, in a display of the unpredictable nature of enforcement, the Google Play Store in India still played host to the very apps that Apple's digital Eden had forsaken as of a nondescript Wednesday afternoon, marked by the relentless march of time. The triad of power-brokers—Apple, Google, and India's technology ministry—has maintained a stance as enigmatic as the Sphinx, their communications as impenetrable as the vaults that secure the nation's precious monetary reserves.
Compounding the tightening of this digital noose, the Financial Intelligence Unit of India, a sentinel ever vigilant at the gates of financial propriety, unfurled a compliance show-cause notice to the nine offshore platforms, an ultimatum demanding they justify their elusive presence in Indian cyberspace. The FIU's decree echoed with clarity amidst the cacophony of regulatory overtures: these digital entities were tethered to operations sequestered in the shadows, skirting the reach of India's anti-money laundering edicts, their websites lingering in cyberspace like forbidden fruit, tantalisingly within reach yet potentially laced with the cyanide of non-compliance.
In this chaotic tableau of constraint and control, a glimmer of presence remains—only Bitstamp has managed to brave the regulatory storm, maintaining its presence on the Indian App Store, a lone beacon amid the turbulent sea of regimentation. Kraken, another leviathan of crypto depths, presented only its Pro version to the Indian connoisseurs of the digital marketplace. An aura of silence envelops industry giants such as Binance, Bitfinex, and KuCoin, their absence forming a void as profound as the dark side of the moon in the consciousness of Indian users. HTX, formerly known as Huobi, has announced a departure from Indian operations with the detached finality of a distant celestial body, cold and indifferent to the gravitational pull of India's regulatory orbit.
Compliances
In compliance with the provisions of the Money Laundering Act (PMLA) 2002 and the recent uproar on crypto assessment apps, Apple store finally removed these apps namely Binance and Kucoin from the store after receiving show cause notice. The alleged illegal operation and failure to comply with existing money laundering laws are major reasons for their removal.
The Indian Narrative
The overarching narrative of India's embrace of rigid oversight aligns with a broader global paradigm shift, where digital financial assets are increasingly subjected to the same degree of scrutiny as their physical analogues. The persistence in imposing anti-money laundering provisions upon the crypto sector reflects this shift, with India positioning its regulatory lens in alignment with the stars of international accountability. The preceding year bore witness to seismic shifts as Indian authorities imposed a tax upon crypto transactions, a move that precipitated a downfall in trading volumes, reminiscent of Icarus's fateful flight—hubris personified as his waxen appendages succumbed to the unrelenting kiss of the sun.
On a local scale, trading powerhouses lament the imposition of a 1% levy, colloquially known as Tax Deducted at Source. This fiscal shackle drove an exodus of Indian crypto traders into the waiting, seemingly benevolent arms of offshore financial Edens, absolved of such taxational rites. As Sumit Gupta, CEO of CoinDCX, recounted, this fiscal migration witnessed the haemorrhaging of revenue. His estimation that a staggering 95% of trading volume abandoned local shores for the tranquil harbours of offshore havens punctuates the magnitude of this phenomenon.
Conclusion
Ultimately, the story of India's proactive clampdown on offshore crypto exchanges resembles a meticulously woven tapestry of regulatory ardour, financial prudence, and the inexorable progression towards a future where digital incarnations mirror the scrutinised tangibility of physical assets. It is a saga delineating a nation's valiant navigation through the tempestuous, cryptic waters of cryptocurrency, helming its ship with unwavering determination, with eyes keenly trained on the farthest reaches of the horizon. Here, amidst the fusion of digital and corporeal realms, India charts its destiny, setting its sails towards an inextricably linked future that promises to shape the contour of the global financial landscape.
References
- https://www.business-standard.com/markets/cryptocurrency/govt-escalates-clampdown-on-offshore-crypto-venues-like-binance-report-124011000586_1.html
- https://www.cnbctv18.com/technology/india-escalates-clampdown-on-offshore-crypto-exchanges-like-binance-18763111.htm
- https://economictimes.indiatimes.com/tech/technology/centre-blocks-web-platforms-of-offshore-crypto-apps-binance-kucoin-and-others/articleshow/106783697.cms?from=mdr
