China Cyber Indictments: What Happens Next?

China Cyber Indictments: What Happens Next?

May 21, 2014 09:40 am | Simon Hansen

Simon Hansen
Cyber Security, Chinahttp://nationalinterest.org/blog/the-buzz/china-cyber-indictments-what-happens-next-10504
Earlier this week, the U.S. Department of Justice indicted five People’s Liberation Army officials for hacking into the computers of U.S. companies to steal trade secrets. The indictment alleges that the PLA Five stole information that would be useful to the companies’ competitors in China, including state-owned enterprises (SOEs). This is a significant development, as the U.S. is directly accusing China of stealing information and using it to undermine the competitiveness of U.S. companies. The charges signal that the U.S. sees the theft of intellectual property as a national security threat and is resolved to hold those responsible to account. It also reaffirms a distinction the U.S. makes between spying for profit, which is wrong, and spying for political purposes, which is acceptable.  Ultimately, the indictment is aimed at influencing China’s behavior in cyberspace. It’s unlikely to prove effective.
The fifty-six page indictment (PDF) is backed by substantial evidence and describes the methods and motives behind the hacks. In the case of nuclear power plant manufacturer Westinghouse, the company was negotiating in 2010 to build four power plants in China when conspirator Sun Kailiang stole design specifications for pipes, pipe supports, and pipe routing. That information would enable a Chinese competitor looking to build a similar plant to save on research and development costs.
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