Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Australian Security Intelligence Organisation (ASIO) Director-General Mike Burgess warned on Wednesday that hackers linked to China’s government and military have probed Australia’s telecommunications networks and critical infrastructure. He cautioned against the significant risk of economic disruption due to potential cyber sabotage, a claim swiftly dismissed by Beijing as a “false narrative.”
Cyber Espionage Allegations
Burgess, speaking at a business conference in Melbourne, highlighted the activities of Chinese hacking groups “Salt Typhoon” and “Volt Typhoon.” He described these groups as operating on behalf of Chinese government intelligence and its military, actively investigating possibilities for disruption.
He cited “Salt Typhoon” for penetrating U.S. telecoms systems in a strategic spying operation and indicated similar probing of Australian telecommunication networks. “Volt Typhoon,” he added, has demonstrated an intent to disrupt operations, having compromised U.S. critical infrastructure in preparation for potential sabotage.
The spy chief emphasized the severe implications of widespread telecoms disruption, which could affect sectors such as banking, transport, and essential services like water and power supplies. He stated these were not hypotheticals, as foreign governments possess elite teams exploring such capabilities.
Economic Impact and Broader Threats
Burgess also noted that espionage cost Australia an estimated A$12.5 billion ($8.1 billion) last year, including A$2 billion in lost trade secrets and intellectual property. He suggested other scenarios could involve crippling Australian companies as trade competitors or causing panic during elections.
China’s Response
In Beijing, Chinese foreign ministry spokesperson Guo Jiakun responded to Burgess’s remarks, stating they “spread false narratives and deliberately provoked confrontation.” Guo confirmed that China had lodged representations with Australia regarding the allegations.
Burgess revealed that Chinese officials frequently lodge complaints with the Australian government and private sector whenever he publicly discusses China, including after a recent speech at the Lowy Institute in Sydney last week. He affirmed that such complaints would not deter his resolve.
Ongoing Tensions
The exchange underscores escalating tensions between Australia and China over cybersecurity, with Canberra asserting a direct threat to its critical infrastructure from state-backed actors, while Beijing maintains a firm denial, characterizing the accusations as confrontational.
