China’s cyber espionage capabilities pose a severe and ongoing threat to both the United States government and private sector networks, according to the 2023 Annual Threat Assessment Report released by the U.S. Office of the Director of National Intelligence.
China’s government is prioritizing efforts to become self-sufficient and boost innovation by using tools such as public investment and espionage to advance its technological capabilities and protect domestic firms. This poses an ongoing challenge for the U.S. economy and workers while enabling Beijing to take the lead in technological advancement and standards.
Technology Acquisition
China will continue to acquire foreign technology and expertise through partnerships, investments, and cyber theft. As China’s economy slows, it will face “guns versus butter” choices in allocating resources to technology development and industrial policy. However, Beijing still has significant state resources to prioritize technology and other areas, as evidenced by the continued availability of new loans and project financing for its priorities and partner countries.
Moreover, the country’s aggressive pursuit of cyber technologies, combined with its expansive industry, exacerbates the risk of cyber operations that could suppress the free flow of information in cyberspace, negatively impact US web content, and potentially cause technology-driven authoritarianism globally. The report warns that if China perceives a significant conflict with the US, it could launch aggressive cyber operations against critical US infrastructure, military assets, and even induce societal panic.
Beijing is increasingly combining growing military power with its economic, technological, and
U.S. Office of the Director of National Intelligence
diplomatic influence to strengthen CCP rule, secure what it views as its sovereign territory and regional preeminence, and pursue global influence.
Infrastructure Threats
According to experts, China is fully capable of launching cyber-attacks that could disrupt critical infrastructure services within the US, such as oil and gas pipelines, rail systems, and more. The country also leads the world in applying surveillance and censorship to monitor its population and repress dissent. Its cyber intrusions are targeted to affect US and non-US citizens, including journalists, dissidents, and individuals considered as threats to counter views it considers critical of the CCP.
China’s cyber espionage operations have included compromising telecommunications firms, managed service providers, and widely used software, among other targets that offer rich opportunities for intelligence collection, attack, or influence operations. It is clear that the US must be prepared for any possible aggression from China, which calls for enhanced cybersecurity measures in both the private and public sectors.
Influence Operations
Additionally, China is ramping up its efforts to shape U.S. public opinion on sensitive issues like Taiwan, Hong Kong, Tibet, and Xinjiang, while also targeting perceived political opponents. The Chinese government monitors overseas Chinese students, uses student associations to promote its agenda, and influences research by U.S. academics and think tanks. To stifle anti-Beijing criticism, the Chinese government has been known to pressure family members in China, deny or cancel visas, block access to Chinese archives and resources, and disrupt or withdraw funding for exchange programs.