In a recent cyberbreach, Chinese government hackers targeted the US Treasury office that administers economic sanctions, it was reported by the Washington Post on Wednesday.
Earlier this week, the department divulged a “major incident” to Capitol Hill lawmakers after hackers gained access to the Treasury and stole unclassified documents. At the time, it did not specify which departments or users were affected. It has since been revealed that the office responsible for economic sanctions was among those targeted by the hackers.
Tensions between the US and China have been heightened in recent months, with China recently opening a probe into US chipmaker Nvidia as a series of escalating sanctions threatens to boil over. With President-elect and notorious China-skeptic Trump now just days away from taking office, the timing could not be worse.
Chinese Hackers Targeted Sanctions Office, Washington Post Claims
Chinese-sponsored hackers that gained access to the US Treasury Department in December specifically targeted the office responsible for economic sanctions, the Washington Post reports. The office of Treasury Secretary Janet Yellen, who refused to rule out sanctions on Chinese banks in December, was also targeted by the hacks.
Malicious actors gained access to BeyondTrust, the third-party cybersecurity company that provides remote technical support for Treasury employees. Through this, they were able to remotely access federal employees’ workstations and any documents that they maintained.
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China Blasts Cybercrime Charges
The news first came to light on December 8, 2024, when BeyondTrust notified the Treasury that it had begun working with the US Cybersecurity and Infrastructure Security Agency (CISA) and the FBI to gauge the impact of the breach. According to “available indicators,” the hack was likely to have been perpetrated by state-sponsored Chinese actors, it claimed.
In response to the allegations, Liu Pengyu, spokesperson for the Chinese Embassy in Washington, called the claims “irrational,” “without any factual basis,” and “smear attacks.” He went on to state that China “combats all forms of cyberattacks.”
Last month, Treasury Secretary Janet Yellen refused to rule out sanctions against Chinese banks that were found to be funding the Russian invasion of Ukraine. She stated: “I absolutely would not rule out the possibility we would sanction an individual bank if we had the necessary level of…evidence to be able to put sanctions on.”
US-China Tensions Heating Up as Trump Nears Oval Office
With Trump set to be sworn in as US President in just a few days, relations between the US and China are under considerable strain – and could be set to worsen even further.
In recent months, the two superpowers have levied several tariffs, sanctions, and probes against each other in an escalating grudge match. A month ago, the federal government published tips for broadband providers after relentless telecommunications breaches from China. Elsewhere, the imminent US ban on TikTok inches closer as a solution continues to elude the Chinese-owned ByteDance.
As an avowed China skeptic, there are fears that Trump’s second term could spell disaster for the already fractured relationship between the US and China. While Trump himself has moved to quell these concerns, reportedly inviting Chinese President Xi Jinping to his inauguration later this month, his first term was characterized by hostility towards the superpower.
