China Accuses Taiwan of Running US-Backed Cyber Operations Network

Taiwan’s Government Cyber Units Allegedly Target Chinese Infrastructure with US Support, Report Claims

Key Facts

• China’s National Computer Virus Emergency Response Center claims Taiwan has conducted cyber operations with US support through five APT groups
• The report identifies specific APT groups including APT-C-01, APT-C-62, APT-C-64, APT-C-65, and APT-C-67, each with distinct targeting objectives
• Taiwan’s cybersecurity market projects 11.10% CAGR growth from 2025-2030, driven by increased security demands

Introduction

China has unveiled detailed allegations of a sustained cyber offensive by Taiwan, supported by the United States, according to The Register. The accusations, detailed in “Operation Futile,” spotlight Taiwan’s Information, Communications, and Electronic Force Command (ICEFOM) as the central actor in these alleged operations.

Key Developments

The report outlines five Advanced Persistent Threat (APT) groups allegedly operating under Taiwan’s direction. APT-C-01 and APT-C-62 conduct phishing campaigns targeting government and scientific institutions. APT-C-64 has reportedly attempted system infiltrations since 2006, while APT-C-65 monitors critical infrastructure during sensitive political discussions.

APT-C-67 specializes in surveillance system compromise, focusing on geographic intelligence gathering. However, China characterizes these groups as possessing limited technical capabilities, mainly relying on known vulnerabilities rather than sophisticated attack methods.

Market Impact

The revelations have catalyzed significant shifts in Taiwan’s cybersecurity landscape. Private sector organizations are accelerating their digital defense investments, while government agencies enhance their security protocols. The cybersecurity market shows robust growth, particularly in cloud-based security solutions and AI-driven technologies.

Banking, healthcare, and government sectors lead the demand for enhanced security measures, particularly in Identity and Access Management (IAM) solutions and Extended Detection and Response (XDR) systems.

Strategic Insights

China’s characterization of Taiwan’s cyber capabilities as “low-level” appears strategically calculated. The report emphasizes the groups’ reliance on public resources and commercial tools, suggesting limited independent capabilities for developing cyber weapons.

Expert Opinions and Data

Security analysts note that the timing of these revelations coincides with increased regional tensions. Industry experts suggest that China’s dismissal of Taiwan’s cyber capabilities as “an ant trying to shake a tree” may be aimed at undermining Taiwan’s technological credibility.

Market research indicates that Taiwan’s investment in cybersecurity infrastructure continues to grow, with particular emphasis on cloud security and artificial intelligence integration. The projected market growth reflects mounting concerns about data protection and regulatory compliance.

Conclusion

The allegations highlight the complex interplay of cybersecurity and geopolitical tensions in the region. While China portrays Taiwan’s cyber operations as ineffective, the impact on regional cybersecurity markets and technological development remains significant. The situation underscores the growing importance of cyber capabilities in modern geopolitical dynamics.