Throughout 2024, Chinese state-sponsored hacker groups like Volt Typhoon and Salt Typhoon orchestrated a series of cyber offensives, targeting everything from U.S. telecommunications to Guam’s critical infrastructure.
Rahul Pawa
On a December morning in 2024, a silent invasion unfolded—unseen, unheard, yet profoundly destabilising. The U.S. Treasury Department, the nerve center of American economic power, fell victim to a meticulously planned cyberattack attributed to the Chinese Communist Party (CCP). This was no ordinary breach. It was a calculated strike targeting the Office of Foreign Assets Control (OFAC) and the Office of the Treasury Secretary—both critical enforcers of sanctions against Chinese entities embroiled in cyber operations and arms deals with Russia.
As the sun rose over Washington, D.C., officials scrambled to assess the damage. Anne Neuberger, the U.S. Deputy National Security Advisor for Cyber and Emerging Technologies, stood before the press, her tone somber but resolute. “This was not just espionage. This is part of a broader strategy to undermine our critical infrastructure and economic sovereignty,” she declared. Behind her words lay months of escalating cyber conflict, a crescendo that had been building since the CCP’s hybrid tactics first gained traction.
The December breach was merely the tip of the iceberg. Throughout 2024, Chinese state-sponsored hacker groups like Volt Typhoon and Salt Typhoon orchestrated a series of cyber offensives, targeting everything from U.S. telecommunications to Guam’s critical infrastructure. Volt Typhoon, dismantled in January, had covertly commandeered hundreds of routers across the United States, laying the groundwork for attacks on water treatment facilities, electrical grids, and transportation systems. Meanwhile, Salt Typhoon focused on high-profile targets, infiltrating devices used by key political figures, including Donald Trump and his running mate, Senator J.D. Vance.
Salt Typhoon’s activities, described by Neuberger as “an unparalleled espionage operation,” breached nine major U.S. telecom providers, stealing sensitive data and leaving behind dormant malware—a ticking time bomb designed to cripple American defences at a critical juncture. “This is not about immediate damage,” explained Rob Joyce, the National Security Agency’s cybersecurity director. “It’s a long game—preparing to paralyse us when we’re most vulnerable, perhaps during a conflict over Taiwan.”
While the United States grapples with the looming specter of a cyber Armageddon, Taiwan stands as the front line of Beijing’s digital onslaught. In 2024, Taiwan’s National Security Bureau reported an average of 2.4 million cyberattacks daily, a staggering escalation from the 1.2 million daily incidents the previous year. These attacks targeted military systems, government networks, and critical infrastructure, all under the shadow of Taiwan’s January elections.
Beijing’s strategy is clear: to undermine Taiwan’s democratic process and weaken its defences ahead of a potential invasion. The CCP’s disinformation campaigns, deployed in tandem with cyberattacks, sought to erode trust in Taiwan’s institutions. Yet, as Taiwanese President Tsai Ing-wen reaffirmed her nation’s commitment to sovereignty, the island’s resilience became a rallying cry for democracies worldwide.
Compounding the threat is China’s deepening partnership with Russia in cyber and information operations. Ukrainian intelligence reports from 2022 revealed CCP-linked spyware embedded in over 600 Ukrainian defense ministry websites—an ominous precursor to Moscow’s invasion. By 2024, this synergy had expanded to include the exchange of malware and tactics, raising alarms in Washington about the potential for coordinated cyberattacks on the U.S. homeland.
“Imagine a cyber Pearl Harbor, but orchestrated by two of our greatest adversaries,” warned Senator Mark Warner, Chair of the Senate Intelligence Committee. His words echoed the growing fears in Washington: that Beijing and Moscow’s digital axis could escalate from sabotage to all-out cyber warfare.
The battle isn’t confined to cyberspace. In January 2024, Taiwan’s northern coast faced an economic lifeline’s severance when the Shunxin 39, a vessel with ties to Hong Kong-based Chinese interests, allegedly damaged a vital undersea telecom cable. Weeks later, the Yi Peng 3, a Chinese-flagged vessel, severed cables in the Baltic Sea, raising suspicions of deliberate sabotage.
Beijing denies these incidents are acts of war, dismissing them as accidents. However, the frequency and precision of these events suggest otherwise. For Taiwan, already reeling from cyberattacks, these disruptions are a chilling reminder of its vulnerability.
As the CCP’s cyber arsenal grows, the United States finds itself in an uncomfortable reality: unprepared for the scale and sophistication of Beijing’s hybrid tactics. The December Treasury hack, focused on intelligence gathering, underscores the need for a robust cyber defense strategy. OFAC, a linchpin in the U.S. sanctions regime, had sanctioned multiple Chinese firms in 2024 for their role in supplying arms to Russia and conducting cyberattacks. By breaching OFAC, Beijing sought to anticipate and counter future sanctions.
The broader implications are stark. Guam, home to vital U.S. military installations, has emerged as a prime target. The island’s infrastructure was repeatedly probed in 2024, likely as a rehearsal for disrupting American operations in the Pacific. “Guam is the canary in the coal mine,” Joyce remarked. “If we can’t protect it, how can we hope to defend Taiwan?”
As President-elect Trump, takes office, he has vowed to “bring the fight to Beijing.” Yet, the path forward is fraught with challenges. Building a resilient cyber defense infrastructure, forging alliances, and holding adversaries accountable will require a Herculean effort. The Treasury breach is a sobering reminder of what’s at stake. It’s not just about stolen data or disrupted systems; it’s about the erosion of trust in institutions, the weakening of defences, and the existential threat to democratic governance. As Anne Neuberger aptly put it, “Cybersecurity isn’t just a technical issue—it’s a national security imperative. And in this battle, complacency is not an option.”
(Author is Research Director at Centre for Integrated and Holistic Studies, New Delhi based non-partisan think-tank)
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