Congress investigates China's cyber incursions targeting US critical infrastructure

In a pivotal meeting on February 25, 2025, the U.S. House Committee on Financial Services confronted the escalating threat posed by Chinese cyber actors infiltrating critical infrastructure. The session highlighted alarming revelations from agencies like CISA, NSA, and the FBI, confirming that hackers sponsored by the People's Republic of China (PRC) have successfully breached U.S. networks, targeting vital sectors such as water, energy, and communications.

The discussion centered on the activities of two notable hacking groups: Veil Typhoon and Flax Typhoon. These groups are reportedly positioning themselves within IT networks to facilitate disruptions and have launched extensive botnet attacks on American and Taiwanese systems. In response to these threats, the U.S. Treasury has implemented a series of sanctions aimed at curbing the aggressive cyber activities of these state-sponsored actors.

Congressman Garberino pressed for strategies to mitigate the impact of these incursions, prompting expert testimony on the necessity of reinforcing basic cybersecurity measures. Mr. Miller emphasized the importance of end-to-end encryption, multi-factor authentication, and enhanced visibility into network assets to understand the scope of breaches. He acknowledged that while sanctions can hold bad actors accountable, they are not a standalone solution to the persistent and evolving nature of cyber threats.

The meeting also touched on the broader implications of U.S. competitiveness in the global market, particularly in the nuclear energy sector, where the U.S. aims to reclaim leadership against rivals like Russia and China. Experts underscored the need for robust domestic supply chains and innovation to enhance export capabilities.

As the committee wrapped up, the urgency of addressing these cybersecurity challenges was clear. The discussions underscored a critical moment for U.S. policy, as lawmakers and experts alike recognized that the fight against cyber threats from China is ongoing and requires a multifaceted approach to ensure national security and economic stability.