The Biden administration said Monday that China was behind a “massive” hack of the Treasury Department that accessed classified documents and workstations of government employees.
After a year marred by hacks across all government agencies, China experts say it’s time to get serious about thwarting enemy espionage.
“The recent break-in should not come as a surprise. For too long, the Chinese Communist Party has not paid a real price for its increasingly aggressive intrusions into our homelands and networks,” said House China Select Committee Chairman, R-Mich. Rep. John Moolenaar told Fox News Digital.
“Now is the time for Congress and the incoming Trump administration to impose increasing costs to deter the Chinese Communist Party.”
It’s not yet clear what exactly the hackers were looking for. The Treasury Department holds sensitive data about the global financial system, as well as estimates of China’s sluggish economy. It also imposes sanctions on Chinese companies and those supporting Russia in its war against Ukraine.
“Although the Treasury says the Chinese obtained only classified documents, we must remember that the Treasury hack sent shivers across the United States and around the world. “Countries depend on the dollar, so can we trust the stability of U.S. financial markets?” said China expert Gordon Chang.
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“For too long, the Chinese Communist Party has paid no real price for its increasingly aggressive intrusions into our lands and networks,” Rep. John Moolenaar told Fox News Digital. (Al Drago/Bloomberg, courtesy of Getty Images)
The Treasury Department was notified of the breach by its service provider on December 8, and all affected systems were taken offline. China said the accusation that it was behind this act was “unfounded” and that it “consistently opposes all forms of hacking.”
Despite China’s denials, the Treasury Department claimed that Chinese government-backed actors were behind the attacks. Chang suggested that Xi may have intended to be arrested to send a message to the world.
“You can’t really rule out the possibility that the Chinese actually wanted to be arrested because they wanted to create uncertainty around the world. They wanted to show the world that America was not safe. “Their networks are not good, and China is controlling them at will.”
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Just a few weeks ago, U.S. President-elect Donald Trump appeared to be trying to smoothen relations with China by inviting President Xi Jinping to the inauguration ceremony. But recent hacking attempts suggest those efforts may be futile, Chang said.
“American presidents have attempted to make preemptive concessions to China for decades. They haven’t brought us any benefit. “The reason is that the Chinese do not repay them,” he said.
Earlier this year, Chinese intelligence intercepted the communications of Commerce Secretary Gina Raimondo as she was making decisions on new export controls for semiconductors and other key technologies. The same hacking group also targeted State Department officials and members of Congress.
The Treasury Department was notified of the breach by its service provider on December 8, and all affected systems were taken offline. (AP Photo/Patrick Semansky)
China, led by President Xi Jinping, denied involvement in the hacking incident. (Florence Law – Swimming Pool/Getty Images)
And the Treasury hack comes as the Biden administration is grappling with Salt Typhoon, one of the largest Chinese attacks on U.S. infrastructure in history.
A Chinese intelligence group has infiltrated nine large U.S. telecommunications companies and accessed the private text messages and phone calls of Americans, including senior government officials and prominent politicians.
The Salt Typhoon hackers also gained access to a complete list of phone numbers tapped by the Justice Department to monitor suspected spies, giving them insight into which Chinese spies the U.S. caught and missed.
The onslaught of cyberattacks has stoked frustration and raised questions about cybersecurity and why America’s adversaries are able to regularly infiltrate U.S. government systems.
“The American people should be angry that China hacked us, but they should be angry at our political leaders. Because our political leaders know what is happening. They have the means to protect us, but they chose not to,” Chang said.
Last week, the new national security adviser, Rep. Mike Waltz, R-Fla., suggested that the United States should not only defend itself, but also attack offenses.
Representative Mike Waltz, a Republican from Florida, speaks at a press conference following a briefing of all House members on Afghanistan at the U.S. Capitol in Washington, DC, Tuesday, August 24, 2021. (Stefani Reynolds/Bloomberg via Getty Images)
“We have to stop trying to play better and better defense,” he told Fox Business’ Maria Bartiromo. “We must go on the attack.”
“We need to start imposing consequences on those who steal our technology and spy on us. Now, through a program called Volt Typhoon, they are planting cyber time bombs on critical infrastructure like our water, power grid and ports.” said Waltz. said.
“The United States can no longer afford cyber defense alone. “We need to attack and impose costs on those who steal our technology and attack our infrastructure,” he added to X.
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President Trump proposed imposing a 60% tariff on American imports from China. Last month, the Biden administration announced the strictest crackdown ever on China’s semiconductor industry, intended to hinder the country’s ability to develop AI for modern military uses.
