China's cyber-power surge: Hidden threat to global security

In recent years, China has rapidly increased its cyber capabilities, paralleling its growth in military power. From producing advanced warships and missiles to becoming a dominant force in the online world, China is reshaping the cyber landscape. A case in point: on March 4, 2025, the U.S. Department of Justice charged eight Chinese nationals with large-scale hacking operations that targeted government agencies, media outlets, and dissidents across the globe. These cyberattacks, allegedly orchestrated by the Chinese government through the company i-Soon, underline the escalating threat China poses in cyberspace.

As noted by Christopher Wray, former FBI Director, China’s hacking efforts have expanded so rapidly that, by 2023, their scale surpassed that of any other nation, marking a significant leap in global cybersecurity concerns. The article by The Economist highlights three key areas where China’s cyber prowess is making its mark: political espionage, potential sabotage in times of conflict, and the theft of intellectual property.

The first area, political espionage, is largely driven by the Ministry of State Security (MSS), China’s foreign intelligence arm. In one recent example, a group of Chinese hackers, known as Salt Typhoon, breached the systems of multiple American phone companies, gaining access to sensitive communications from key officials. This type of cyber-espionage echoes revelations from 2013, when Edward Snowden exposed massive surveillance by U.S. intelligence agencies. According to Ciaran Martin, former head of the UK’s National Cyber Security Centre, China’s efforts were similarly audacious, enabling it to “gain vast access to the nation’s communications.”

Second, China is increasingly focusing on hacking that could lay the groundwork for sabotage in times of crisis or war. The People’s Liberation Army (PLA), China’s military force, has orchestrated attacks like those from the hacking group Volt Typhoon. This group has infiltrated critical infrastructure across the U.S., including ports, factories, and water treatment plants. These efforts are not aimed at stealing information but at establishing a foothold that could be used for disruption in a future conflict.

Third, China’s cyber activities include industrial-scale theft of intellectual property. Since 2013, when Mandiant, a cyber-threat intelligence firm, exposed the PLA-linked hacker group APT1, China has been notorious for stealing business plans, manufacturing blueprints, and technological secrets. This wave of espionage resulted in what former NSA head Keith Alexander called “the greatest transfer of wealth in history.” Although a brief truce in 2015, during which China agreed not to engage in intellectual property theft, brought a temporary dip in these activities, commercial espionage is once again on the rise.

China’s cyber operations have undergone significant shifts in recent years. The MSS has taken center stage, focusing on political and commercial intelligence gathering, while the PLA has narrowed its focus to military intelligence and reconnaissance. In addition, Chinese hacking operations have become more sophisticated and subtle. As John Hultquist of Mandiant notes, Chinese hackers, once overt and prone to setting off alarms, have now become highly skilled and discreet operators.

Another notable shift is the increasing role of China’s private sector in supporting its cyber operations. Hackathons like the Tianfu Cup in Chengdu, backed by Chinese ministries, have become hubs for scouting cyber talent. Private firms also provide critical infrastructure, enabling China to carry out more covert and sophisticated attacks.

The scale and sophistication of China’s cyber activities represent a major shift in the global cyber threat landscape. While China has yet to cross the line into full-scale cyber warfare, its growing influence and capabilities are setting the stage for future conflicts in cyberspace. As The Economist notes, the scale of China's operations—embodied by groups like Volt and Salt Typhoon—has led to strategic compromises in the West on a scale unseen before. The growing cyber threat from China is not just a concern for the U.S. but for nations worldwide, and it’s clear that this digital battlefront is only set to escalate.

By Vugar Khalilov