Chinese hackers breached US miltary contractors

Senate report suggests 20 acts of Chinese cyber-espionage took place in one year, with poor communication in US government also partly to blame

Chinese government-backed computer hackers repeatedly breached the networks of US military contractors including airline, shipping and technology firms involved in the movement of soldiers and equipment, an investigation by the US Senate has found.

Released by the Senate Armed Services Committee following a year-long investigation, the report suggests there were 20 infiltrations into networks of military contractors between June 2012 and May 2013. The information accessed included details about military strategy and logistics which could be used to disrupt US forces operations.

The Senate investigation also suggests poor practice surrounding reporting requirements within the US government is at least partially responsible for the authorities remaining unaware that the computer networks of their contractors had been compromised.

Speaking at the launch of the report, Carl Levin, Democratic Senator of Michigan and chairman of the Senate Armed Services Committee, suggested it is still impossible to know if hackers from China or elsewhere are currently accessing US networks.

"Do I have confidence that the Chinese are stopping? No," he said. "Do we have determination that we're going to take steps to defend ourselves against these intrusions? Yes."

Levin also warned that the report provides clear evidence that Chinese authorities are actively attempting to engage in cyber-espionage.

"These peacetime intrusions into the networks of key defence contractors are more evidence of China's aggressive actions in cyberspace," he said.

A statement by the FBI said the organisation "continues to aggressively investigate cyber intrusions emanating from state-sponsored actors and other criminals."

"We remain committed to working with our interagency partners to identify threats, protect the nation's infrastructure from potential harm, and hold accountable those groups and individuals that pose a threat in cyberspace," the statement added.

However, Geng Shuang, spokesman for the Chinese embassy in Washington, questioned the findings of the Senate's report, insisting that China isn't involved in any sort of cyber-espionage.

"Judging from past experience, those kinds of reports and allegations are usually based on fabricated facts and groundless," Shuang said in a statement reported by Bloomberg.

Speaking earlier this year, US ambassador to China Max Baucus insisted that the US government must act to stop cyber crime of Chinese origin.

"We won't sit idly by when a crime is committed in the real world, so why should we when it happens in cyberspace? We will continue to use diplomatic and legal means to make clear that this type of behaviour must stop," he said.