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1. 2
It’s About Culture
Cyber + Espionage
A Commentary on Chinese Hacking
It Will Get Worse Before It Gets Better
· David Swan, Executive Vice President, CSCSS Defence and Intelligence Group
CSCSS / Centre for Strategic Cyberspace + Security Science
1
There are a lot of people who are
sick of news stories about Chinese
Hackers. They don't believe that
there is any impact on their world.
The impact of hacking in general, and the
Chinese hacking in particular, has reached
everyday life. Worse, the effects will get
worse before they get better.
The scope of Chinese activity ranges from
stealing ideas from business startups to
stealing plans for jet fighters. Coca-Cola
admitted they were hacked – it cost them the
opportunity to purchase a Chinese beverage
company. An expert Chinese Hacker was
identified – as a professor at a Military
University. Most recently, at least 140
computer attacks against American
companies have been traced to a Chinese
Army Unit. Companies in Silicon Valley, Wall
Street, Bay Street, and rural Saskatchewan
have been hit by Chinese Hackers.
2
The Chinese are one of the oldest cultures on
earth. They have been attacked countless
times, over thousands of years and often the
attackers were successful. The result is a
culture that is concerned about being
attacked again.
This is not about 'rational thought' but a deep
cultural (genetic?) sense that there are many
enemies who want to take what China has.
The result is that the Chinese think differently
at a basic level and therefore behave
differently. When a western company
competes with a Chinese company, they are
competing against the company, plus all the
families of those companies, plus all the
extended relationships, plus a protective
government, PLUS THE CULTURE which
says that China MUST be protected. The
result is like one person trying to play against
an entire football team. The Chinese have
stacked the odds in their favour.

2. 3
Why Chinese Hacking
Will Get Worse
1
What the Chinese have done is apply lessons
from their Master Strategist Sun Tzu. Hacking
to the Chinese is collecting information on the
enemy ( us ), learning our strengths and
weaknesses – and learning our plans. This is
NOT business, this is the application of
thousands of years of history and culture, and
we are the target.
The Chinese understand that in a global
economy they are competing against the
world. Thousands of years of Chinese history
tells them that they WILL be attacked again
and that they must be ready. Chinese Master
Strategist Sun Tzu taught that in order to
protect themselves they must know the plans
of allies and enemies. The easiest way to get
that information is hacking.
The next issue is that the Chinese have not
been “caught”. Most computer security
operators don't have any Intelligence or
forensic investigation training, so they stop at
the end of the electronic trail. Even when the
trail visibly leads to China, no one wants to
lose ( or offend ) the business potential.
The Chinese have never been punished for
hacking. Over thousands of events, mere
hundreds of attacks have been publicized
and few reports have made the mainstream
western media. Few people have any
concept of how rampant the Chinese hacking
efforts are, so the Chinese continue to get
away with claiming they are victims.
Bottom line: the Chinese have been taught
they must collect all information on allies and
enemies alike, hacking has produced superb
results so far with no significant
repercussions. The Chinese will continue to
use hacking as an effective tool of choice.
2
Conclusion
Any person or organization who believes
that they can 'do business' with the Chinese
is ignoring Chinese culture. Its not 'about the
money' its not about business' and it never
will be. Politicians who believe the Chinese
will agree to treaties and conventions, or that
diplomacy can resolve disputes, are ignoring
Chinese history. Any person who believes
that Chinese hacking has had no impact on
their world has not been paying attention.
CSCSS Defence Intelligence Group
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Defense Intelligence Group regarding
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