Background

Recent data leaks from iSoon, a Chinese security contractor have leaked information about Chinese hacking capabilities and surveillance technology which has been used against its own citizens aswell as foreigners. Chinese cyber attacks targeting the Dutch and Japanese governments have revealed cyber vulnerabilities in defence networks and government systems. Hackers who have often been accused of being directly supported by the Chinese state have targeted business, state infrastructure and government personnel. Chinese hackers have recently targeted both the Japanese and Dutch governments. Consequently, both governments have responded with stern diplomatic warnings. China, however, has rejected these as baseless. Instead they have responded by alleging that they have been the victims of US-based hacker groups. With Chinese cyber capabilities being increasingly developed they have the potential to disrupt and damage countries without firing a shot.

Key Judgement 1. China will highly likely launch more cyber attacks against foreign governments to gain access to defence and diplomatic information in the next 12 months.

Key Judgement 2. Chinese authorities are highly likely to invest in new and better cyber warfare capabilities in the next 12 months.

Key Judgement 3. US and European governments will highly likely strengthen critical infrastructure security in response to Chinese cyber attacks in the next 12 months