The United States on Monday charged five members of a shadowy Chinese military unit for allegedly stealing trade secrets as it vowed to ramp up the fight against hacking.
In the first-ever prosecution of state actors over cyber-espionage, a federal grand jury indicted the five on charges they broke into US computers to benefit Chinese state-owned companies, leading to job losses in the United States in steel, solar and other industries.
Attorney General Eric Holder called on China to hand over the five men for trial in the steel city of Pittsburgh and said the United States would use "all the means that are available to us" if, as expected, Beijing refuses.
President Barack Obama's administration "will not tolerate actions by any nation that seek to illegally sabotage American companies and undermine the integrity of fair competition," Holder told reporters.
"This case should serve as a wake-up call to the seriousness of the ongoing cyber threat," Holder told reporters.
The grand jury indicted each of the five --Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu and Gu Chunhui -- on 31 counts, which each carry penalties of up to 15 years in prison.
Prosecutors said that the five officers belonged to Unit 61398 of the People's Liberation Army. A report last year by security firm Mandiant said that the unit had thousands of workers operating out of a non-descript, 12-story building on the outskirts of Shanghai where they pilfer intellectual property and government secrets.
Loss of US jobs
US officials said they investigated the unit for several years and believed that the hacking had contributed to "substantial" job and profit losses in the United States.
Hackers stole secret designs from Westinghouse, the US nuclear plant giant owned by Japan's Toshiba, just as it was negotiating with a Chinese state-owned company, said John Carlin, the assistant attorney general for national security.
He said that hackers also stole pricing information from the computers of company SolarWorld to help Chinese competitors in the solar energy sector, in which China has invested heavily.
"It is not conduct that most responsible nations within the global economic community would tolerate," Carlin said.
David Hickton, the US attorney for the western district of Pennsylvania, called cyber-espionage "21st-century burglary."
The indictment said that victims also included industry titans Alcoa and US Steel as well as the United Steelworkers labor union.
Officials declined to put a financial cost on the hacking. A report led by former US officials estimated last year that cyber espionage -- overwhelmingly by China -- was costing the US economy more than $300 billion each year, equivalent to what the United States sells each year to Asia.
Stepping up the fight
President Barack Obama has directly raised hacking concerns with Chinese President Xi Jinping.
Defense Secretary Chuck Hagel, on a visit to Beijing last month, urged China to be more open about cyber capabilities to reduce the chances of inadvertent conflict.
Beijing has hit back that Washington is hypocritical as it conducts sweeping surveillance around the world, as revealed by former government contractor Edward Snowden.
Snowden's leaks have indicated that the United States has hacked into Chinese telecom giant Huawei -- whose own attempts to penetrate the US market have been blocked by lawmakers' concerns on national security.
The United States has invested heavily in cyber-warfare, with the Pentagon setting up a dedicated command, and is widely suspected to have worked with Israel to infect Iran's nuclear program.
Holder insisted that the US activities were different, saying: "All nations are engaged in intelligence gathering."
"What I think distinguishes this case is that we have a state-sponsored entity -- state-sponsored individuals -- using intelligence tools to gain commercial advantage," he said.
AFP
Mon May 19 2014
US charged five members of a shadowy Chinese military unit for allegedly stealing trade secrets. -AFP Photo
Samples obtained by Chinese spacecraft show moon's ancient volcanism
The material provides new insight into the moon's geological history including the oldest evidence to date of lunar volcanism.
The scamdemic targeting the young and vulnerable
Teenagers and young adults are becoming prime targets for a new wave of cyber scams, a trend raising alarm bells across Southeast Asia.
Japanese manicurist takes on plastic pollution, one nail at a time
Before global leaders address plastic pollution, a Japanese manicurist highlights the issue by incorporating it into her nail designs.
What to watch for ahead of US presidential inauguration
Here's a timeline of events between now and inauguration day.
The battle to reduce road deaths
In Malaysia, over half a million road accidents have been recorded so far this year.
Pro-Palestinian NGOs seek court order to stop Dutch arms exports to Israel
The Dutch state, as a signatory to the 1948 Genocide Convention, has a duty to take all reasonable measures at its disposal to prevent genocide.
How quickly can Trump's Musk-led efficiency panel slash US regulations?
Moves by Trump and his appointees to eliminate existing rules will be met with legal challenges, as many progressive groups and Democratic officials have made clear.
2TM: Consultations on PTPTN loans, admission to IPTA at MOHE booth
Consultations on PTPTN loans and admission to IPTA are among services provided at the Higher Education Ministry booth.
Kampung Tanjung Kala residents affected by flooded bridge every time it rains heavily
Almost 200 residents from 60 homes in Kampung Tanjung Kala have ended up stuck when their 200-metre (m) long concrete bridge flooded.
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.