China’s Covert War in Europe: Cyber Espionage to Strategic Dominance

Editor’s Note: In the latest edition of our Industry News – Cybersecurity Beat, we cover the intricate web of cybersecurity challenges and geopolitical maneuvers that underscore the current international landscape. “China’s Covert War in Europe: Cyber Espionage to Strategic Dominance” unveils the unique strategies employed by China to assert its influence and technological supremacy across Europe, posing significant threats to Western security and democratic integrity. Through comprehensive insights from NATO allies’ security reports, intelligence revelations, and expert analyses, this article highlights the urgent need for heightened cybersecurity vigilance, international cooperation, and strategic foresight among cybersecurity, information governance, and eDiscovery professionals. As China’s endeavors to embed its influence in key infrastructures and the digital domain become increasingly apparent, the piece emphasizes the key role of robust defense mechanisms and the critical importance of safeguarding democratic values and technological sovereignty in the face of evolving global threats.

Industry News – Cybersecurity Beat

China’s Covert War in Europe: Cyber Espionage to Strategic Dominance

ComplexDiscovery Staff

Threats to the West: China’s Push for Political Influence and Technological Hegemony

A wave of security reports from multiple NATO allies paints a stark picture of intensified geopolitical challenges led predominately by Chinese efforts to embed its influence in European infrastructure and the daily lives of Western citizens. A recent annual report by the Norwegian intelligence agency highlighted the pervasive activities of Chinese intelligence networks across Europe, engaging in political intelligence, industrial espionage, and leveraging cyberspace as their primary arena. “Chinese intelligence services operate all over Europe” and remain concealed by utilizing “commonly available tools and digital infrastructure,” the report states.

The Netherlands faced a tangible manifestation of this threat when Chinese state-backed hackers infiltrated a Dutch military computer network by introducing malware last year. Further corroborating this coordinated attack, the FBI revealed last month it disrupted a sophisticated botnet, established by Chinese sanction-backed hackers, intended for ‘critical infrastructure’ targets. This international concern was echoed by intelligence chiefs from the U.S., U.K., Canada, Australia, and New Zealand, who pointed out Beijing’s unprecedented scale of intellectual property theft.

The implicating activities extend beyond the cloak of cyberspace to encompass the economic realm, raising alarm over reliance on value chains where control is markedly skewed. The Norwegian report voiced unease over dependencies notable in the mineral refinement technologies, significantly controlled by China. This disproportionate influence offers China “the ability and the will” to leverage such dependencies to exert political pressure, particularly in light of international sanctions on Russia, thereby challenging the current world order.

Further south, Estonia’s Foreign Intelligence Service, in its annual report, spotlighted the expanding threat of Chinese technology. The report cautions how Chinese state-owned companies, already nudged out from 5G networks, are targeting new sectors like the electrical grid. These encroachments are part of larger strategic efforts “to enhance its political influence” while “exporting its standards,” as summarized by the Estonian spy agency’s chief, Kaupo Rosin.

Both nations are gravely concerned about the regions close to their borders; Norway with the Arctic and Estonia with the Baltic Sea. Their reports imply that Russia, another common adversary, intends to gain military predominance in the Baltic. Estonia’s strategic evaluation predicts a future where NATO could confront a mass army, reminiscent of the Soviet era, demanding heightened preparedness and capability.

Heightening the cyber threat stakes, FBI Director Christopher Wray, at the Munich Security Conference, stressed the alarming scale of cyberattacks hailing from China. The menace, reaching a “fever pitch,” involves Chinese hackers targeting U.S. oil and natural gas companies since as early as 2011. Wray advocated for substantial U.S. investment in cyber capabilities as a measure to counter this pervasive threat.

This narrative of cyber warfare and espionage is reinforced by a joint report from Microsoft and OpenAI, which outlines the employment of advanced artificial intelligence tools by adversaries such as Russia and China to enhance their hacking prowess. In this digital combat arena, large language models (LLMs) are being utilized for tasks ranging from researching vulnerabilities to formulating attack strategies.

The unwavering efforts of these rivals are manifested in a plethora of pursuits as described by Microsoft’s threat intelligence strategic director, Sherrod DeGrippo. For instance, Russian teams are focusing on satellite and radar technologies relevant to warfare, while North Korean and Iranian hackers probe experts on military capabilities and seek sophisticated methods to dupe and dodge electronic detection. The intent is lucid: to undermine Western dominions and, as Wray puts it, to advance China’s hacking program which dwarfs that of all other major nations combined.

The very fabric of democracy is at stake, according to experts who fear the malicious potential of AI in amplifying disinformation. This is notably critical as numerous nations head toward elections, posing risks not only to individual security but also to the integrity of democratic processes.

While the West grapples with the multifaceted nature of these threats, the overarching goal remains clear: the need to bolster defense mechanisms, fortify international alliances, and secure the technological frontiers that have become the new battlegrounds in this covert war.

News Sources

• Microsoft: Iran, N. Korea, China Trying to Weaponize AI
• Microsoft reports details AI use by China, Russia, North Korea, Iran
• Chinese Cyberattacks Are Reaching a “Fever Pitch,” Says FBI Chief
• China ‘penetrating’ electrical grids, NATO ally spy agency warns
• China’s Spies Operating ‘All Over Europe,’ Intelligence Report Warns

Assisted by GAI and LLM Technologies

Additional Reading

• The Cyber Siege: China’s Expanding Digital Dominance and US Response
• EU Cybersecurity Investment Trends: Insights from the NIS Investments Report 2023

Source: ComplexDiscovery OÜ