U.S. Still Leading in Cyber Espionage, but China’s Digital Reach Grows, Says NSA Chief
Cyber Spy Race Heats Up

Overt Operator
August 11, 2023
The cyber-espionage race between the U.S. and China is heating up, but the United States still leads, according to the latest information provided by Army Gen. Paul Nakasone, the outgoing director of the National Security Agency and head of U.S. Cyber Command.
Despite alarming reports of successful Chinese hacks, the U.S. continues to maintain a competitive edge. Nakasone, speaking at the Center for Strategic and International Studies in Washington, did not hesitate to assert that America hasn't been eclipsed. However, he cautioned that China's cyber capabilities are improving.
China has been known for its ambitious digital activities. Over the years, it has been accused of stealing American intellectual property and conducting complex hacking operations. Recent examples include the breach of emails of senior U.S. officials and multiple intrusions into U.S. critical infrastructure.
Microsoft's warning in May of Chinese government espionage activities against key locations, including the island territory of Guam, illustrates the growing sophistication of Chinese hackers. This event reportedly set off an extensive search for malicious code by the Biden administration.
Japan's classified networks were also reportedly compromised this week, allegedly by Beijing-backed operators. This series of actions has prompted concern among U.S. defense officials and highlights the increasing stakes in global cyber warfare.
Nakasone's comments regarding China's strategy of "living off the land" - embedding itself within the country’s critical infrastructure to utilize in the future - highlight the risks of China's infiltration efforts. While he expressed significant concerns about these activities, he made clear that the actions were not merely for intelligence gathering. The implication is that China is positioning itself for more strategic moves.
The Pentagon has identified China as the nation's "pacing challenge," a term underscoring its significant geopolitical and technological threat. Nakasone emphasized that this threat is different from anything he's seen in his three decades of service. The challenge with China is a long-term one that will continue to affect future generations.