5 January 2025

The Biden administration said Monday that China was behind a “major” hack of the Treasury Department, gaining access to unclassified documents and government employee workstations.

After a year full of hacking all government agencies, China experts I say it's time to get serious about thwarting enemy espionage.

“The latest intervention should come as no surprise. For too long, the Chinese Communist Party has paid no real price for its increasingly aggressive intrusions into our homeland and our networks,” said Rep. John Moolenaar, R-Mich., speaker of the House of Representatives. The committee told Fox News Digital.

“It is time for Congress and the next Trump administration “To impose escalating costs to deter the Chinese Communist Party.”

It is not yet clear what exactly the hackers were looking for. The Treasury Department contains sensitive data about global financial systems, as well as estimates about China's faltering economy. It is also implementing sanctions on Chinese companies, as well as on companies that help it Russia in the war against Ukraine.

“Even though the Treasury Department says the Chinese only obtained unclassified documents, we have to remember that the Treasury hack sends shivers not just across the United States, but around the world. Countries depend on the dollar, so can you count on stability? In the American financial markets? Chinese expert Gordon Zhang said.

China directs the largest military buildup since the 1930s against Nazi Germany, according to expert warnings, citing a Pentagon report.

"For too long, the Chinese Communist Party has paid no real price for its increasingly aggressive intrusions into our homeland and our networks," representative. John Moolenaar told Fox News Digital

“For too long, the Chinese Communist Party has paid no real price for its increasingly aggressive intrusions into our homeland and our networks,” Rep. John Moolenaar told Fox News Digital. (Al Drago/Bloomberg via Getty Images)

The Treasury Department was notified by the service provider of the breach on December 8, and all affected systems were taken offline. China described the accusations that it was behind the act as “baseless” and said it “consistently opposes all forms of piracy.”

Despite China's denials, the Treasury Department insisted that a Chinese state-sponsored actor was behind the attack. Zhang suggested that Xi may have intended to be arrested to send a message to the world.

“We can't actually rule out the possibility that the Chinese wanted to be caught because they actually wanted to create uncertainty around the world. They wanted to show the world that the United States is not safe — their networks are not good, and the Chinese control them at will.”

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Just a few weeks ago, President-elect Donald Trump appeared to be trying to smooth relations with China An invitation to President Xi Jinping For his inauguration. But the latest hacking attempt suggests that such efforts may be futile, according to Zhang.

“American presidents have tried to make pre-emptive concessions to China for decades. These concessions have not yielded benefits for us. The reason is that the Chinese do not reciprocate,” he said.

Earlier this year, Chinese intelligence intercepted the communications of Commerce Secretary Gina Raimondo while she was making decisions on new export controls on semiconductors and other key technologies. The same hacking group also targeted officials in Department of State and members of Congress.

Treasury frieze

The Treasury Department was notified by the service provider of the breach on December 8, and all affected systems were taken offline (AP Photo/Patrick Szymanski)

Xi Jinping with soldiers behind him in parade formation

China, led by President Xi Jinping, denied involvement in the hack (Florence Low-Paul/Getty Images)

The Treasury hack comes as the Biden administration faces one of China's largest attacks on US infrastructure in history, dubbed the Salt Typhoon.

A Chinese intelligence group has hacked into nine US telecommunications giants, gaining access to the private text messages and phone calls of Americans, including senior government officials and prominent political figures.

The Salt Typhoon hackers also gained access to a comprehensive list of phone numbers that the Department of Justice had tapped to monitor people suspected of espionage, giving them insight into Chinese spies captured by the US who they could not detect.

The cyberattacks have sparked frustration – and raised questions – about cybersecurity and why America's adversaries are able to infiltrate US government systems on a regular basis.

“The American people should be angry at the Chinese for hacking our accounts, but they should be angry at our political leaders because our political leaders know what's going on. They have the means to protect us, and they've decided not to.” Zhang said.

last week, Incoming National Security Advisor Rep. Mike WaltzThe Republican representative from Florida pointed out that the United States needs not only to play defensively, but also to attack attacks.

Mike Waltz at the podium

Rep. Mike Waltz, a Republican from Florida, speaks during a news conference after an all-House briefing on Afghanistan at the U.S. Capitol in Washington, D.C., U.S., Tuesday, August 24, 2021. (Stephanie Reynolds/Bloomberg via Getty Images)

“We have to stop trying to play better and play better defense,” he told Fox Business' Maria Bartiromo. “We have to start attacking.”

“We need to start imposing consequences on those who steal our technology, spy on us, and now with a program called Volt Typhoon, electronic time bombs are being placed on our critical infrastructure, like our water, our grid and our ports.” He said.

“America cannot afford to just play defensively on the Internet anymore,” he added on X. “We have to go on the offensive and impose costs on those who steal our technology and attack our infrastructure.”

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Trump proposed imposing a 60% tariff on US imports from China. Last month, the Biden administration issued its toughest crackdown yet on China's semiconductor industry aimed at crippling its ability to develop artificial intelligence for modern military uses.

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