China-Based Hackers Breach US Government Email Accounts | China In Focus

A Chinese hacking group foils Microsoft security, targeting the US government in what's being called an Intel gathering scheme. They're fighting everybody as a target. A statement from NATO sparking Beijing's anger lashing out on day two of a major summit. China sent over 30 fighter jets flying near Taiwan. Police in Hong Kong raiding the family home of exiled pro-democracy activists. It's a really upsetting and shocking escalation. And struggling under US sanctions, China's Huawei is preparing a return to the global 5G smartphone market. How will it turn out? Let us know what you think below and subscribe if you haven't already. Welcome to China In Focus, I'm Don Ma. In for Tiffany today. An apparent spying campaign on the hunt for sensitive information. Chinese hackers foil the Microsoft security to break into US government email systems, including the State Department. Officials called it espionage aimed at intelligence collection. Is the hack targeted and how did Beijing react? NTD's Jason Perry has more. A China-based hacking group has been secretly accessing the email accounts of various US government agencies In addition, the email accounts of about 25 global organizations were also hacked during that time. The news comes from the folks at Microsoft, whose cloud service was hacked. Microsoft didn't specify which organizations had been hacked, but the attack was focused on Western Europe. Microsoft also said the Chinese hacking group used a stolen sign-in key to access the email accounts. White House National Security Council spokesman Adam Hodge said the hack into Microsoft's cloud service only affected unclassified systems. If you mix AI in with quantum computing, you can break RSA encryption standards pretty quickly to get a passcode. I spoke with Rex Lee, cybersecurity advisor at MySmart Privacy about the breach, and he explained a key vulnerability. Today, due to the fact that Google, Apple, and Microsoft are in the surveillance and data mining business, meaning that they're surveilling and data mining their end users for profit to collect information to sell to advertisers, they developed their operating systems today on an open API architecture, and that lends itself to surveillance and data mining applications like Facebook or TikTok. The problem with that is that hackers are very sophisticated and they know how to exploit these operating systems that are developed on an open API architecture. So if the systems they hacked were not classified, what information could the Chinese Communist Party be trying to get? You know, if you look at some of the government agencies that they hit, it could be valuable financial information that they're going after, and it could be just simple discussions about new laws that impact new, that impact, may impact the market. It could be to benefit another Chinese company in order for them to gain an advantage within an industry that they're looking to compete in. And he added this. You have to look at China's total strategy here. They're fighting, they're utilizing unrestricted hybrid warfare as the foundation of their war against the West. And what that means is warfare without rules where everybody's a target. Investigators are still working to fully understand the complete scope of this hacking incident. Jason Perry, NCD News. Two world powers are back to butting heads. Beijing is lashing out at the world's most powerful military alliance, NATO. That's after the alliance came out with a statement saying Beijing's ambitions challenge NATO's interests and values. Despite that message, the organization noted it remains open to engaging with the Chinese regime. The US is NATO's largest military power and leads the alliance. Given that status, Washington has stationed materials and tens of thousands of troops across Europe. That's to support the defense of Western Europe. Reacting to the news, Beijing accused NATO of expanding to the East. It also deployed over 30 fighter jets near Taiwan, its biggest incursion into the airspace surrounding the island in the last three months. Given the back and forth, what's NATO's stance on China? Here's what we're seeing so far. Member states are divided on how to approach the issue. French President Emmanuel Macron has spoken against NATO, increasing its focus on China, suggesting NATO should focus on the North Atlantic, another member nation. Hungary said cooperation with China represents opportunities rather than risks. Over in Asia, major regional powers have been seeking more contact with NATO. That's in the face of an ever more aggressive Beijing. Four countries, Japan, South Korea, Australia, and New Zealand, attended the NATO summit in Lithuania on Wednesday. While Japan is in talks over setting up a NATO liaison office in Tokyo, which would become the organization's first in Asia. Tokyo and Seoul also signed deals with NATO, spanning areas such as cyber and technology. At the same time, NATO also made it clear that Taiwan is not part of its responsibility. Here's a line that its chief has repeated, both in speeches and writing. China is not our adversary, and we should continue to engage. But Beijing's increasing uncertainness affects our security. He also touched on Beijing's nuclear ambitions. China's nuclear modernization is unprecedented in speed and scale, and being carried out with no transparency. Beyond that, the organization has drawn attention to Beijing's increasing global footprint, harmful cyber operations, and how it's remained opaque about its military buildup. Another luxury brand is sparking China's anger. Italian fashion brand, Brogheri, apologized to Beijing this week for not showing Taiwan as part of Chinese territory on its website. For businesses or countries that deal with China, whether or not Taiwan is part of China is a fine line to walk. Beijing sees the island as part of its territory. That's despite never having ruled the island. What did Brogheri do to draw the Chinese regime's fire? On the store locations page of its website, the brand listed Taiwan as is, instead of saying China's Taiwan. A Taiwanese news outlet reported on it, and China's social media quickly doled out backlash against the brand. Internet users even threatened a boycott. The company later posted a statement saying it, quote, "'sincerely apologized' and immediately corrected the mistake.'" China is a heavyweight in luxury goods market. A report by PWC says the country will take up a quarter of global market share in two years. But Taiwan isn't the only red line for Beijing. Both Nike and H&M came under fire in China after they expressed concerns over the forced labor in Xinjiang. Amid political turmoil in Russia, a visit by Russian leader Vladimir Putin to China is on the agenda. A Kremlin spokesperson made the announcement Wednesday, adding that now is a good time to build on Russian-Chinese relations. Though there's no official date yet, Russia has been strengthening its ties with China since it sent troops into Ukraine last year. The invasion drove its relations with the West to post-Cold War lows. Just weeks before Russia launched the war, Putin and Chinese leader Xi Jinping committed to a no-limits partnership. When fleeing Hong Kong for the UK in 2020, pro-democracy activist Nathan Law cut ties with his family back home to protect them. But three years later, police raided his parents' home in Hong Kong Tuesday, detaining his parents and brother for questioning. That's after the city's chief vowed to hunt down their son and seven others and likened them to rats crossing the street. NTD's UK correspondent Jane Werrell speaks to Mark Sabah, director for the Committee for Freedom in Hong Kong Foundation, for details. Hi, Mark, it's great to speak with you. Hong Kong activist Nathan Law's brother and parents were taken away for questioning in Hong Kong. Tell me what we know so far. It's a really upsetting and shocking escalation in the way that the Hong Kong authorities are treating dissidents or pro-democracy activists who have left Hong Kong. How common is it for the Chinese Communist Party to use this kind of tactic? Well, on mainland China, it's very common, but essentially what it shows is that mainland China is now in Hong Kong and that the one country, two systems policy that's been in place for the last 25 years is completely and utterly dead. The Hong Kong authorities are clearly, purely working at the behest of the Beijing government. They don't follow the basic law and the laws of Hong Kong. They're constantly changing and twisting and turning them around to persecute and prosecute people who expose their behaviour and expose the mission creep of Beijing into Hong Kong. What should the UK government do now? The British government should immediately call in the Chinese ambassador for a full explanation about why they are pursuing the family members of somebody who no longer lives in Hong Kong and causing that level of distress to somebody who is supposed to be safe on UK borders. The other thing is, this is the right time for the British government to demand that any British judges still drawing a salary from the Hong Kong authorities in Hong Kong to immediately resign their positions and to say that it's absolutely unacceptable that British judges should be sitting in Hong Kong courts. President Joe Biden on Wednesday extended Hong Kong's emergency status for one year, revoking special privileges the US has granted the city. Biden says that's because Beijing's recent actions have fundamentally undermined Hong Kong's autonomy and pose an extraordinary threat to the US. China's foreign affairs arm in Hong Kong blasted the act, calling it self-defeating and hegemonic. Our next update zooms in on a pair of space rivals in a battle for dominance above the clouds. China successfully launched the world's first methane liquid oxygen rocket Wednesday, sending it into orbit and beating out Elon Musk's SpaceX. According to Chinese state media, the carrier rocket blasted off in Northwest China and completed its first flight. The launch marked a milestone achievement, signaling the next generation of vehicles headed for space. Methane liquid rockets are low cost, high performance due to their fuel source and represent one of the most significant directions in space technology research. They're also expected to grow popularity among Chinese aerospace companies. China's launch is something to keep an eye on for US rivals as both sides work towards breakthroughs in space development. Huawei has been in survival mode ever since the US hit it with sanctions and blocked its access to high-end microchips. But now the Chinese tech giant is planning a return to the 5G smartphone market by the end of the year. Let's zoom in. That's according to leading research firms who argue Huawei could now get hold of 5G chips domestically. It's possible due to advances in Huawei's own semiconductor design tools and chip making by Chinese firm SMIC. A return to the 5G phone market would be a victory for the company after years of restrictions. In 2019, the US cut Huawei's access to chip making tools. At one time, it competed with Apple and Samsung to be the world's biggest handset maker. Huawei's consumer business revenue peaked at $67 billion in 2020, but plummeted by almost half a year later. Since then, Huawei has only sold limited batches of 5G models using stockpiled chips. The US and European governments have called Huawei a security risk, which the company denies. Chinese media reported this month Huawei had raised its mobile shipment target to 40 million units for this year. The research firms said Huawei could produce a 5G version of flagship models like the P60 this year, while new launches could happen in early 2024. But US restrictions still hurt. Washington cut Huawei off from Google's Android operating system, which limits the appeal of Huawei handsets outside of China. Huawei and SMIC did not comment on the report. Another big story to look out for, a new battleground for the US-China power struggle, the ocean floor. That's where an undersea cable firm is secretly helping America take on China. What's inside Washington's latest strategy to compete? That report and more coming up on tomorrow's China In Focus. And that's all for today's China In Focus on YouTube. We're now sharing a shortened version of our program here after being demonetized for two years. Here's what to look out for in our second half. The latest numbers on China's economy are painting a grim picture. Prices of Chinese goods and services are falling at their fastest rate in over seven years. Of the consumer side, teeters on the edge of deflation. The public is now urging policymakers toward more stimulus to revive sluggish demand. What's the pulse on the world's second largest economy? We sat down with Brian McCarthy, Chief Strategist at MacroLens for details. The full episode is available on our partner platform, Epoch TV. Click the link down below. Thanks for watching China In Focus. I'm Don Ma. See you tomorrow.