WIDE LENS REPORT

China’s Escalating Cyber Threat: A Digital Pearl Harbor Looms

19 Apr, 2025
2 mins read

For decades, China’s spies, hackers, and state-backed enterprises have exploited vulnerable American companies, lured by the promise of the vast Chinese market, to siphon off intellectual property through forced technology transfers. This systemic theft has gone largely unchecked, with U.S. businesses grudgingly accepting it as the cost of operating in China. But in the past two years, the Chinese Communist Party’s cyber operations have taken a far more dangerous turn, posing a direct threat to America’s ability to prevail in any potential conflict.

China’s cyberattacks have evolved into a sophisticated, multidimensional assault on U.S. interests, with two alarming advancements at the forefront. The first, dubbed “Salt Typhoon” by Microsoft, is a massive data-collection operation rivaling the capabilities of the U.S. National Security Agency. Directed by China’s Ministry of State Security, and in collaboration with its Ministry of Public Security, this campaign has reportedly breached at least nine U.S. telecommunications giants, including Verizon and AT&T. By exploiting its expertise in quantum cryptography, China is fortifying its own systems against U.S. penetration while harvesting vast troves of American data. The FBI has responded by urging all Americans—not just government employees—to adopt end-to-end encryption for their communications.

Even more perilous is the second development: “Volt Typhoon,” also known as “Vanguard Panda.” This operation involves the covert insertion of malware into the computer systems that control critical U.S. infrastructure—water systems, power grids, ports, and transportation networks. Designed to lie dormant until activated, this malware could unleash chaos during a future military confrontation, such as a Chinese move against Taiwan or the Philippines. The discovery of malicious code in Guam’s water supply systems, a hub for vital U.S. military assets in the Indo-Pacific, underscores Beijing’s strategic intent.

“We’ve been playing better and better defense when it comes to cyber,” said Mike Waltz, then a congressman, in a December 2024 CBS News interview shortly before his appointment as national security adviser. “We need to start going on offense and start imposing higher costs and consequences… that are literally putting cyber time bombs on our infrastructure.”

The potential impact of Volt Typhoon is catastrophic. Jen Easterly, former director of the U.S. Cybersecurity and Infrastructure Security Agency, warned that such an attack could be “everything, everywhere, all at once.” A coordinated strike could cripple U.S. communications, logistics, and defense manufacturing, delaying or preventing an effective military response. The resulting chaos could give China a decisive window to achieve its objectives, such as seizing Taiwan, while eroding global confidence in America’s ability to project power.

China’s cyber ambitions are no secret. Shared intelligence with allies like the United Kingdom and Australia confirms that Beijing’s malware may already be embedded in critical U.S. systems. The stakes are clear: a successful attack could not only disrupt America’s war-fighting capacity but also advance China’s broader goal of supplanting the U.S. as the dominant power in the Indo-Pacific—and beyond.

The incoming Trump administration faces an urgent task. President Trump has already deployed six B-2 bombers to the U.S.-U.K. base in Diego Garcia, signaling a muscular response. Further steps could include expediting arms deliveries to Taiwan and urging the island to prepare for conflict. A cabinet-level push to bolster the resilience of U.S. infrastructure, coupled with a rigorous audit of cyber vulnerabilities, is essential.

Some experts advocate a bolder approach: taking the fight to China’s own cyberspace. Targeting entities like the Cyberspace Administration of China could disrupt Beijing’s command-and-control networks. As Waltz emphasized, imposing costs on adversaries is overdue. With the specter of a digital Pearl Harbor looming, the U.S. must act swiftly to secure its defenses—and prepare to strike back.

Don't Miss

Chinese ‘Bitcoin Queen’ Sentenced in Britain’s Largest Money Laundering Case

LONDON — In a case that has exposed the global reach of

India’s Principled Partnership with Africa: A Model for South-South Cooperation

NEW DELHI — As Africa navigates an increasingly contested geopolitical landscape in