China Now America's Number One Cyber Threat – US Must Get Up to Speed

At a recent RSA Conference in San Francisco, retired Rear Admiral Mark Montgomery warned of a growing threat that has shifted the balance of power in the world of cyber warfare: China. According to Montgomery, who served as the former director for transnational threats for the US National Security Council, China has become the primary adversary facing the United States online.

Montgomery pointed to the Volt Typhoon attacks against the US last year as a significant turning point in this shift. The subverted companies supporting US critical infrastructure were among those targeted by Chinese hackers. In December 2024, Montgomery confirmed reports that Chinese officials had been open with the Biden administration about their role in these attacks.

"I think the Chinese Communist Party has gotten wicked good at this," Montgomery said, emphasizing the growing sophistication of China's cyber capabilities. "We've preached about China's intellectual property theft and joint venture theft for two decades, but now we see them as a major player." He noted that China's Typhoon penetration was an opportunity for their hackers to demonstrate their abilities.

Montgomery highlighted the disparity in staffing levels between the US military and China. In 2015, the US military recruited 6,400 people for cyber offense, with 2,100 coming from the Navy. However, Montgomery suggested that Chinese offensive staffing levels had increased by around 1,000 percent over the same timeframe.

The former national security director also noted that while American military bases are relatively safe and well-protected, commercial systems are not. This means that if China were to launch a cyber attack on US critical infrastructure, it could have significant consequences for the country's safety and security. Montgomery emphasized the importance of securing private sector networks, which currently account for around 82-86 percent of US critical infrastructure.

"Mathematically, we've now determined it is somewhere between 82 and 86 percent owned and operated by the private sector, state, and local governments," Montgomery said, referencing a mistake made in the 1990s when the true figure was supposedly around 85 percent. He noted that this lack of transparency has led to inadequate cybersecurity measures being implemented.

Montgomery predicted that China could use its cyber powers to retaliate against tariffs with a Typhoon attack. The most likely scenario would be if China decided to take Taiwan, aiming to lower the US public's confidence in the government and their appetite for involvement in a crisis. By compromising critical systems like power grids, water treatment plants, and transportation networks, China could undermine the American way of life.

In response to this growing threat, Montgomery called for immediate action by the US. He suggested recruiting more offensive online operators to the US military, potentially utilizing the National Guard's unused talent. Additionally, he promoted extending the 2002 Sarbanes-Oxley Act to require greater cybersecurity preparation and reporting from companies.

"CEOs aren't going to put spending into hardening critical infrastructure security unless they are forced to," Montgomery concluded. "They need to be." By taking these steps, the US can build resilience against China's cyber threats and protect its critical infrastructure.