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US report blasts China, Russia for cybercrime

By Lolita C. Baldor

Associated Press

Published: Thursday, Nov. 3 2011 4:33 p.m. MDT

WASHINGTON — U.S. intelligence officials accused China and Russia on Thursday of systematically stealing American high-tech data for their own national economic gain.

It was the most forceful and detailed public airing of U.S. allegations after years of private complaints. U.S. officials and cybersecurity experts said the U.S. must openly confront China and Russia in a broad diplomatic push to combat cyberattacks that are on the rise and represent a "persistent threat to U.S. economic security."

But experts said solving the problem won't be easy.

In a report released Thursday, U.S. intelligence agencies said "the governments of China and Russia will remain aggressive and capable collectors of sensitive U.S. economic information and technologies, particularly in cyberspace."

Speaking at a forum at the National Press Club, Robert Bryant, the national counterintelligence executive, said the U.S. is finally making the charges public because China and Russia are stealing sensitive U.S. technology data.

If Russia and China build their economies on stolen U.S. data, "that's not right," Bryant said. "We want to basically point out what the issue is. We want to be worried and we want to be careful, but we also want there to be an awareness and, frankly, drive that toward solutions where we work together to bring this under control."

The report is part of an increased effort by U.S. officials to highlight the risks of cyberattacks in a growing high-tech society. People, businesses and governments are storing an increasing amount of valuable and sensitive information online or accessing data through mobile devices that may not be as secure as some computers.

The Obama administration has urged individuals and the corporate world to better protect their data. Thursday's report is a clarion call, cybersecurity experts said.

"We should have done this years ago," said James Lewis, cybersecurity expert and senior fellow at the Center for Strategic and International Studies. "We've pretended it hasn't been happening, but that's not the case. I hope this is the first in a series of documents that lays out the huge problem the U.S. is facing."

The U.S. points fingers at Russian and Chinese intelligence services and corporations based in those countries or tied to the governments.

The intelligence report, however, did not say how many of the cyberattacks are government-sponsored and would not name other countries that pose similar but lesser threats. It suggested that U.S. allies may be using their access to American institutions to acquire economic and technology information.

China had no immediate response to the report, which was issued after normal business hours Thursday in Beijing.

China has consistently denied engaging in cyberspying and, at a regularly scheduled news briefing Wednesday, Foreign Ministry spokesman Hong Lei reiterated Beijing's insistence that it also has been attacked.

"China is a major victim of hacking," Hong said. "China is ready to build, together with other countries, a peaceful, secure and open cyberspace order."

He added, "As for the remarks from certain quarters, I would point out that hacking attacks have no boundaries and are anonymous. Speculating on the origin of the attacks without investigation is neither professional nor responsible."

China has been linked to a number of high-profile breaches.

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