China denies hacking US Treasury, says claims of Chinese state-sponsored hackers baseless

China has strongly denied allegations of being behind a cyber breach at the US Treasury Department, dismissing the claims as unfounded. The accusations, which point to a Chinese state-sponsored hacking group, have further strained the already tense relations between the two nations.

The US Treasury revealed the breach occurred earlier this month through a third-party cybersecurity provider. Hackers reportedly accessed a critical key used by the vendor, allowing them to bypass certain system controls. This access enabled unauthorised entry to workstations and unclassified documents, according to a letter sent by the Treasury to lawmakers.

China pushes back on accusations

Beijing responded on Tuesday through its foreign ministry, firmly rejecting the accusations and labelling them as politically motivated falsehoods. The ministry reiterated that China opposes all forms of hacking and denounced the claims as lacking evidence. A spokesperson emphasised that China had consistently maintained this stance against baseless accusations.

The incident has reignited concerns in the US over alleged Chinese government-backed cyber activity. The Treasury Department’s preliminary findings have attributed the breach to a state-sponsored advanced persistent threat (APT) actor, a term describing sustained, covert cyber-attacks by sophisticated groups.

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Treasury’s investigation underway

The US Treasury, alerted by its third-party provider, swiftly involved the Cybersecurity and Infrastructure Security Agency (CISA) and law enforcement to assess the damage. The compromised service has since been taken offline, and officials reported no evidence of continued access to Treasury systems.

While details on what exactly was affected remain sparse, the Treasury promised further updates in a supplemental report. A department spokesperson stressed the agency’s commitment to protecting its systems and data from potential threats.

Longstanding cybersecurity concerns

The breach is the latest in a series of allegations against Chinese-backed cyber actors targeting governments, businesses, and critical infrastructure worldwide. In 2023, Microsoft reported that Chinese hackers accessed email accounts of 25 US government agencies. Earlier, US authorities had dismantled a Chinese-linked network accused of targeting public sector infrastructure, including water and transportation systems.

These incidents have fuelled ongoing tension, with the US repeatedly pointing to China as a major player in global cyber espionage. Beijing, however, continues to reject such allegations, asserting its commitment to combating cyber-attacks and maintaining cybersecurity standards.

The unfolding Treasury breach and its implications highlight the persistent challenge of cyber threats in an increasingly interconnected digital world.