Chinese Pursue State Sponsored Cyber Espionage

Thursday, November 18, 2010



Not surprisingly, China Telecom staunchly denies taking part in the redirection of nearly 15% of worldwide Internet traffic for an eighteen minute period last April.

The statement, issued by China's largest telecom company via email, runs counter to the report issued by the U.S.-China Economic and Security Review Commission's (USCC).

The report issued yesterday cites overwhelming evidence which "specifically concluded that the Chinese government, Communist Party, and Chinese individuals and organizations continue to hack into computer systems and networks in the U.S. and other countries."

The chain of events that caused the rerouting of information packets through China Telecom servers was said to have been initiated by IDC China Telecommunication, a relatively small Internet provider.

The USCC report documents multiple incidents where trffic originating from other countries has been mysteriously rerouted through Chinese servers, most likely by exploiting flaws in the Border Gateway Protocol (BGP).

The statement from China Telecom was brief, asserting only that "China Telecom Corporation Limited denied any hijack of Internet traffic."

Other reports have asserted that the Chinese government is actively using Chinese telecom companies to conduct cyber espionage against the United States, and questions have been raised about investments and partnerships with Chinese telecom companies and American corporations tied to Governor-elect Rick Snyder of Michigan.

Early in November, Congress killed a proposed deal between Sprint Nextel and Chinese telecommunications-equipment makers Huawei Technologies and ZTE over security concerns.

Sources:  Special thanks to Greg George of GTI Advisors

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