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Chinese hackers’ attack on the computer of the U.S. Treasury Secretary Janet Yellen

Newswire / /

US Treasury Secretary Janet Yellen’s computer was breached, with unclassified files accessed as part of a broader cyberattack on the department attributed to Chinese state-sponsored hackers, according to two individuals familiar with the situation.

The attackers also infiltrated the computers of two of Yellen’s deputies, Deputy Secretary Wally Adeyemo and Acting Under Secretary Brad Smith, said the sources, who requested anonymity due to the sensitive nature of the information. According to one of the sources, fewer than 50 files were accessed on Yellen’s device.

The hackers appeared to concentrate on the Treasury’s functions related to sanctions, intelligence, and international affairs. However, they did not gain access to the department’s email or classified systems, according to a Treasury report previously reviewed by Bloomberg News.

In addition to breaching the computers of top Treasury officials, the hackers infiltrated more than 400 laptop and desktop devices. They obtained usernames, passwords, and over 3,000 files stored on unclassified personal devices, the report reveals.

The intruders also accessed “law enforcement sensitive” information and materials related to investigations by the Committee on Foreign Investment in the U.S., which evaluates the national security risks of certain foreign investments, according to the Treasury report.

BeyondTrust Corp., a software contractor, notified the Treasury on December 8 that hackers had exploited its networks to compromise the department. Treasury then sought assistance from the Cybersecurity and Infrastructure Security Agency, the FBI, and other intelligence agencies.

Investigators attributed the breach to a Chinese state-sponsored group known in cybersecurity circles as Silk Typhoon or UNC5221.

Chinese officials have consistently denied U.S. accusations of state-sponsored hacking. Last month, a spokesperson for China’s foreign ministry dismissed claims that the government was responsible for the Treasury breach as “unwarranted and groundless.”

“China has always opposed all forms of hacker attacks,” Mao Ning, a spokesperson for China’s foreign ministry, said at the time.

In 2023, China was also accused of breaching the email accounts of key U.S. government officials, including Commerce Secretary Gina Raimondo and U.S. Ambassador to China Nicholas Burns, as reported by The Wall Street Journal.

Chinese hackers’ attack on the computer of the U.S. Treasury Secretary Janet Yellen Read More »

Guide to Sustainable Policies of Major Financial Institutions

Research / /

The guideline, developed by Civic IDEA with the support of CAPS Unlock, provides an in-depth overview of the environmental and social policies adopted by major international financial institutions (IFIs) to promote responsible and sustainable development. It covers the frameworks established by the following IFIs:

World Bank (WB) Asian Development Bank (ADB) European Bank for Reconstruction and Development (EBRD) European Investment Bank (EIB) Asian Infrastructure Investment Bank (AIIB)

The guidebook outlines the policies these institutions require borrowers to follow, ensuring that projects minimize negative impacts on communities and the environment. It emphasizes sustainability by mandating comprehensive risk assessments and the implementation of safeguards to address issues such as biodiversity loss, pollution, and social disruption. A core focus is placed on transparency, stakeholder engagement, and responsible project management throughout the entire development process.

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US Investigation Finds China Using “Unfair” Practices In the Maritime Sector; What Could Happen Next?

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The Biden administration has determined that China employs “unfair policies and practices” to dominate the global shipbuilding, logistics, and maritime sectors, according to three sources familiar with the findings of a months-long trade investigation.

The U.S. Trade Representative (USTR), Katherine Tai, initiated the investigation in April 2024 following a petition from the United Steelworkers and four other U.S. unions. The probe was conducted under Section 301 of the Trade Act of 1974, which allows the U.S. to impose penalties on foreign nations engaging in practices deemed “unjustifiable,” “unreasonable,” or detrimental to U.S. commerce.

Investigators found that China specifically targeted the shipbuilding and maritime sectors for global dominance. They concluded that the country utilized “financial support, barriers for foreign firms, forced technology transfer, intellectual property theft, and procurement policies” to bolster its competitive edge, according to one source who spoke on the condition of anonymity. The report also highlighted that Beijing “severely and artificially suppressed China’s labor costs in the maritime, shipbuilding, and logistics sectors,” the source added.

Although the findings have not been officially confirmed or denied by U.S. officials, they come at a time of growing competition between the two largest economies and as Washington seeks to reduce reliance on Chinese manufacturing and supply chains by rallying allied nations.

Shipyards in Asia, including those in South Korea and Japan, may see some benefits if penalties are imposed on China’s shipbuilders. However, analysts and a senior executive from a major Chinese shipbuilding firm noted that China’s shipbuilding industry, due to its sheer scale and cost advantages, remains robust enough to withstand such measures in the short term. 

According to the data cited by the US probe, China’s share of global shipbuilding has expanded to over 50% in 2023.

“China’s shipbuilders have overtaken the Japanese and the Koreans and everyone under the sun,” said James Chin, a professor of Asian studies at the University of Tasmania.

Chin added that Chinese shipbuilders are “safe in the near term – up to roughly 24 months – from any measures that the U.S. might take.”

US Investigation Finds China Using “Unfair” Practices In the Maritime Sector; What Could Happen Next? Read More »

The Road to Dependency: Chinese Banks Eyeing Georgia

New, Research / /

A new report by Civic IDEA examines a key development stemming from the Sino-Georgian strategic partnership: the potential entry of Chinese banks into the Georgian market.

The report highlights recent meetings between the central banks of Georgia and China, during which the National Bank of Georgia consistently expressed interest in the presence of Chinese state-owned banks in Georgia.

It also addresses the risks and challenges linked to Chinese financial institutions, citing examples of “debt-trap diplomacy” in countries such as Sri Lanka, Tajikistan, and Montenegro.

The Road to Dependency: Chinese Banks Eyeing Georgia Read More »

EU-China Trade Tensions

Newswire / /

Beijing has criticized the European Union for imposing unfair trade barriers on Chinese companies, as the world’s second-largest economy prepares for the possibility of new U.S. tariffs following Donald Trump’s anticipated return to the White House at the end of January.

China’s Ministry of Commerce has published the findings of an investigation, claiming that the European Commission’s selective enforcement of competition policy unfairly discriminates against Chinese companies. In October, the EU increased tariffs on electric cars made in China. Beijing argues that the definition of “foreign subsidies” is subjective and causes unfair harm, warning that it should anticipate retaliation.

A 20-page report from the Chinese Ministry of Commerce indicates that the European Commission has consistently warned companies about potential retaliatory actions for violating regulations and has threatened them with substantial fines. Furthermore, the report claims that some Chinese companies were forced to cancel projects to have investigations against them dropped. According to the Chinese Ministry of Commerce, this has resulted in losses exceeding 15.6 billion yuan, equivalent to approximately $2.13 billion.

Last year, the European Union initiated an investigation into a Chinese train manufacturer that planned to supply trains to Bulgaria. The scope of the investigation was later expanded to include Chinese-owned solar panel companies attempting to build a photovoltaic park in Romania. Additionally, European authorities conducted raids on the Dutch and Polish offices of Nuctech, a Chinese security equipment supplier. In response, Beijing launched its own trade investigation into European products, which could result in increased tariffs on luxury car imports from the EU.

China and the European Union share a strong “symbiotic” economic relationship, and President Xi Jinping expressed hope that the bloc can become a “reliable partner for cooperation” during his conversation with European Council President Antonio Costa on Tuesday. The EU official emphasized the need for Beijing to play a role in contributing to a just and lasting peace in Ukraine.

The EU’s foreign subsidy regulation is designed to safeguard businesses within the bloc’s 27 member states from unfair competition. The regulation grants Brussels the authority to investigate instances where state subsidies are suspected of distorting market conditions.

EU-China Trade Tensions Read More »

China-Russia trade relations reach record highs amid US sanctions

Newswire / /

In 2024, the trade volume between China and Russia increased significantly. The value of Chinese imports and exports to Russia in 2024 was 1.75 trillion yuan ($237 billion), a record high. The value of China-Russia bilateral trade has reached 244.8 billion dollars in 2024, which is 4 billion more than the previous year.

According to the General Administration of Customs of China, China-Russia yuan-denominated trade value increased by 2.9% in 2024 compared to 2023, although this growth was much slower than in 2023. At the same time, the supply of Chinese goods to Russia in 2024 increased by 5% in yuan terms in 2024 compared to the previous year, which is sharply below the 53.9% increase in 2023.

Such close economic ties between China and Russia have long been a subject of attention for America. Back in July 2024, Biden made a clear statement that China and Xi Jinping would definitely have to be held accountable for providing Russia with a lot of help in the fight against Ukraine.

According to Russian President Vladimir Putin, the main challenge for trade between China and Russia is the agreement on settlement and payment methods for each other. Despite this, Putin emphasized that in 2024 the relations between the two states reached an unprecedented level, which he assessed as a positive process. In his New Year’s greetings to Putin, Chinese President Xi Jinping expressed a similar position and said that China and Russia have always “hand in hand” moved forward in the right direction. Russia’s state news agency RIA also reported a promise made by Moscow’s ambassador to Beijing in December that Xi Jinping would visit Russia in 2025.

Increased trade between China and Russia is due to Western sanctions against Russia. As Alfredo Montuffar-Helou, head of the China Center of the Conference Board, a US-based think tank, states, Russian consumers have fewer alternatives to choose from in the domestic market due to Western sanctions, which increases the demand for Chinese goods. According to his prediction, the trade between these two states will continue in 2025 as well, as China becomes a bigger market for Russian exports, Chinese products fill the deficit caused by the limited supply of products from Western countries to the Russian market.

However, this bilateral trade will face a big test in 2025. On January 10, the US Treasury Department announced the imposition of additional sanctions against the Russian energy sector. The sanctions target Gazprom Neft and Surgutneftegaz, two of Russia’s most important oil producers and exporters, as well as block 183 vessels to cut Moscow’s energy revenues. The States believe that the energy industry is the Kremlin’s main source of income, which allows it to finance military aggression in Ukraine.

Cui Dongshu, the general secretary of the China Passenger Car Association, told Chinese media that in 2025, the export of cars to Russia may even decrease, which is caused by the increase in taxes.

US Treasury Secretary Janet Yellen warned Chinese Vice Premier He Lifeng during the talks that Chinese firms would face repercussions and consequences if they provided material aid to Russia against Ukraine.

China-Russia trade relations reach record highs amid US sanctions Read More »

EMERGING CONCERN Chinese Surveillance Cameras in Georgia

New, Research / /

A new report by Civic IDEA explores an emerging dimension of China-Georgia law enforcement cooperation: the procurement of Chinese surveillance technology by Georgian government institutions.

Drawing on publicly available data, the report examines state procurement of Chinese surveillance cameras between 2019 and 2024, revealing a growing trend in the acquisition of this technology by Georgian authorities.

The report’s final section highlights the significant challenges associated with Chinese surveillance technology, including data insecurity, vulnerability to cyber-attacks, human rights concerns, and close ties to the Chinese Communist Party. These issues have led to the banning of Chinese surveillance technology in several Western countries.

CHINESE SURVEILLANCE CAMERAS REMAIN A GLOBAL CONCERN

EMERGING CONCERN Chinese Surveillance Cameras in Georgia Read More »

Chinese cyber-espionage campaign reached the US Foreign Investments Office

Newswire / /

According to CNN, Chinese hackers breached the US government office, which assesses foreign investment in the context of national security. This action underlines the Chinese interest in American institutions that have the power to block Chinese investments in the US once more.

The targeted office of the hacking campaign, the US Foreign Investment Committee (CFIUS), expanded its authority to learn about the sales of real estate near the US military bases extensively since national security experts believe that China or its proxies could purchase the lands to spy on said bases.

Aside from CFIUS, the hacking campaign reached the Office of Foreign Assets Control as well, which is responsible for sanctions enforcement. Notably, the office recently sanctioned a Chinese company for alleged involvement in cyber attacks.

According to an article published by Bloomberg, Silk Typhoon, a Chinese group, is behind these cyber attacks. The group was involved in an attack on Microsoft Exchange Server as well.

The Chinese embassy in Washington, D.C., spokesperson Liu Pengyu denied Chinese involvement in hacking operations once again.

Chinese cyber-espionage campaign reached the US Foreign Investments Office Read More »

CHINESE COMPANY CRTG: SECURITY RISKS AND INFRASTRUCTURE FAILURES

Research / /

“Civic Idea” is pleased to present a new publication examining the recent entry of the Chinese state-owned company, China Railway Tunnel Group (CRTG), into the Georgian market.

The report delves into the controversies and challenges surrounding CRTG, which is overseeing two critical infrastructure projects: the Kvesheti-Kobi highway connecting Georgia to Russia and the Stepantsminda-Gveleti connecting road.

This study highlights key concerns, including security risks, infrastructure deficiencies, and the company’s history of serious international violations. It provides an in-depth analysis of CRTG’s operations in Georgia and explores its track record in other countries.

CHINESE COMPANY CRTG: SECURITY RISKS AND INFRASTRUCTURE FAILURES Read More »

Biden extends sanctions on Hong Kong officials

Newswire / /

US President Joe Biden has signed legislation extending the Hong Kong Human Rights and Democracy Act of 2019 for another five years. The Act authorizes sanctions on key Chinese officials and authority figures, justified by violations of Hong Kong’s autonomy and the suppression of fundamental rights, including freedom of expression and assembly.

The legislation is included in the annual National Defense Authorization Act (NDAA), which outlines the budget and U.S. military policy for the upcoming fiscal year. Alongside the extension of the Hong Kong Act, the Reciprocal Access to Tibet Act and the Uyghur Human Rights Policy Act were also renewed.

Hong Kong and Beijing have condemned the U.S. sanctions, warning Washington that such measures are ultimately detrimental to the United States itself. They argue that the sanctions risk undermining the longstanding trade relationship between the U.S. and Hong Kong.

The severity of U.S. sanctions is reinforced by the dominant influence of the U.S. dollar in the global financial system. Individuals targeted by these measures face both financial restrictions and travel bans, amplifying the impact of the sanctions.

Hong Kong’s current Chief Security Officer, Carrie Lam, has stated that she evaded U.S. sanctions by receiving her salary in cash and keeping it at her residence.

In addition to the above, the U.S. State Department announced further sanctions in November, primarily focusing on visa restrictions.

The decision to impose these measures was made by the U.S. after 45 opposition representatives were arrested in Hong Kong on charges of attempting to overthrow the government.

In response, China is imposing sanctions on American individuals whose actions (concerning Hong Kong) it deems unfavorable.

Biden extends sanctions on Hong Kong officials Read More »

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