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The USA -China Cyber War : Methodologies, Weapons & Tactics

  • Writer: The DigitalBank Vault
    The DigitalBank Vault
  • 1 day ago
  • 4 min read

In the past 24 months, U.S. and Chinese cyber operations have escalated into a near‑constant, multi‑vector “grey‑zone” confrontation, blending espionage, sabotage preparedness, supply‑chain subversion, and disruptive attacks on telecommunications and critical infrastructure.


China‑nexus cyber activity surged by roughly 150% in 2024, propelled by groups such as Volt Typhoon, APT41 (“Winnti”), Salt Typhoon, Liminal Panda, and UNC3886 — while the U.S. has responded with indictments of APT‑for‑hire actors and court‑authorized botnet takedowns of Volt Typhoon implants in domestic routers


Taiwan’s government networks endured an average of 2.4 million daily probes from China‑linked actors in 2024, illustrating the scale of probing operations underway


Meanwhile, the “Salt Typhoon” campaign compromised multiple global telecom providers—harvesting metadata, call‑recordings, and SMS content—prompting FBI and CISA advisories urging carriers to harden their networks


Strategic Context


Both Beijing and Washington view cyberspace as a core domain for achieving strategic objectives without triggering open conflict. China’s cyber doctrine emphasizes long‑term intelligence gathering, economic espionage to support state industrial policy, and “pre‑positioning” for potential future sabotage of U.S. military and civilian infrastructure


The U.S., in turn, leverages its superior offensive cyber capabilities to deter Chinese aggression and protect critical supply chains—publicly naming and shaming intruders like APT‑for‑hire groups and conducting court‑approved botnet disruptions to impede ongoing campaigns


Methodologies & Tactics


Zero‑Day Exploitation & Supply‑Chain Intrusion


  • Zero‑Days: Chinese state‑backed groups regularly deploy undisclosed vulnerabilities in major enterprise products (e.g., Microsoft Exchange, Ivanti Connect Secure, Barracuda), enabling stealthy entry and long‑dwell espionage


  • Firmware Backdoors: In mid‑2024, UNC3886 implants on Juniper routers (via TinyShell‑derived backdoors) demonstrated how firmware compromises can evade traditional detection and persist across reboots


  • Supply‑Chain Attacks: Beijing’s operators have likewise targeted third‑party software updates and managed‑service providers, a tactic mirrored by U.S. campaigns against hostile foreign proxies


Spear‑Phishing, Vishing & Credential Theft


  • Social Engineering: Spear‑phishing remains a staple, now augmented by AI‑driven vishing, which surged by 442% in late 2024, allowing adversaries to trick executives into divulging MFA tokens or launching malicious payloads


  • Living‑Off‑the‑Land (LotL): Volt Typhoon and similar APTs eschew custom malware for built‑in Windows and network tools (e.g., PowerShell, WMI), minimizing forensic footprints and blending into normal traffic patterns





Industrial & Telecom Network Intrusion- The USA -China Cyber War : Methodologies, Weapons & Tactics


  • ICS/SCADA Infiltration: Q3 2024 saw multiple Chinese‑linked campaigns against industrial control systems—targeting electric utilities and water treatment plants via Modbus and DNP3 protocol exploits—underscoring China’s readiness to disrupt critical services


  • Telecommunications Exploits: The Salt Typhoon operation breached global carriers, exploiting SS7 flaws and custom malware to siphon SMS, call metadata, and even voice recordings from U.S. and allied networks T



Cyber Weapons & Malware Families


  • Winnti (APT41): A multitool framework for code‑signing abuse, proxying, and lateral movement, often used to steal intellectual property from software vendors and gaming firms


  • ShadowPad & PlugX: Modular backdoors enabling remote shell access, file exfiltration, and command execution, frequently delivered via trojanized installers


  • TinyShell Derivatives (UNC3886): Firmware implants on Juniper routers permit both passive sniffing and active remote code execution, all while disabling local logging


  • Liminal Panda Tools: A mix of custom proxy utilities and public‑domain staging frameworks used to pivot between telecom core servers, harvest subscriber IMSI data, and intercept SMS/MMS traffic


  • Salt Typhoon Payloads: Custom C2 droppers and metadata harvesters that leverage compromised carrier infrastructure to obtain roaming data and call records


Notable Incidents (2023–2025)


  • FBI Disruption of Volt Typhoon (Jan 2024): The FBI removed Volt Typhoon implants from U.S.‑based internet routers in a court‑authorized operation, temporarily curbing Chinese espionage on critical communications links


  • Singtel Telecom Breach (Jun 2024): Microsoft and Bloomberg reported a Volt Typhoon compromise at Singapore’s largest carrier, which Singtel later “eradicated” from its systems


  • Winter Games Accusations (Feb 2025): China’s Harbin authorities publicly accused the U.S. NSA of cyber‑sabotage against Asian Winter Games infrastructure, naming alleged agents in a rare, reciprocal attribution


  • Treasury Department Hack (Dec 2024): U.S. sanctions targeted Beijing‑based Integrity Technology after Chinese APTs accessed Yellen’s desktop and exfiltrated Treasury documents, marking one of the highest‑profile breaches to date


  • Taiwan Daily Probes (2024): Attacks on Taiwan’s government infrastructure averaged 2.4 million per day, reflecting persistent reconnaissance and intrusion attempts by Chinese cyber forces


  • Indictments of APT‑for‑Hire Hackers (Mar 2025): U.S. authorities charged multiple Chinese “hacker‑for‑hire” networks implicated in breaches of critical U.S. agencies and private firms


Consequences & Impact


  • Intellectual Property Loss: CSIS and industry reports estimate tens of billions in annual losses from theft of trade secrets and proprietary R&D data by China‑linked APTs


  • Operational Risk to Critical Services: The infiltration of utilities and telecom networks raises the specter of blackouts, water‑contamination events, and communications outages during crises


  • Geopolitical Tensions: Mutual accusations, sanctions, and public attributions have hardened cyber postures, increasing the risk of miscalculation or escalation into kinetic confrontations





Defensive Measures & Counter‑Operations


  • Zero‑Trust Architectures: Both nations are mandating stricter identity verification, micro‑segmentation, and continuous authentication to limit lateral movement


  • Threat Intelligence Sharing: CISA, FBI, and Five Eyes partners regularly issue joint advisories on IOCs and TTPs for groups like Volt Typhoon and APT41


  • Botnet Takedowns: U.S. court‑approved actions to disrupt Volt Typhoon routers illustrate the use of judicial tools to combat state‑sponsored botnets on domestic soil


  • Supply‑Chain Audits: Organizations are required to vet third‑party code and firmware, echoing U.S. executive orders on software integrity and SBOM (Software Bill of Materials) mandates


Future Outlook-The USA -China Cyber War : Methodologies, Weapons & Tactics


  • AI‑Powered Attacks: Generative‑AI will accelerate phishing, image‑based deepfakes for social engineering, and automated reconnaissance—trends already forecast by CrowdStrike’s 2025 Threat Report


  • Global Cyber Norms: Growing calls for an international framework to limit peacetime cyber operations mirror efforts in conventional arms control—but enforcement remains elusive


  • Escalation Risks: Continued “push‑button” escalation capabilities underscore the need for robust crisis communications channels to prevent inadvertent conflict in cyberspace.


In sum, the U.S.–China cyber “grey‑zone” rivalry has matured into an ever‑present, highly technical contest stretching from carrier backbones to nuclear‑adjacent industrial systems — with both sides wielding an expanding arsenal of zero‑days, supply‑chain backdoors, and living‑off‑the‑land toolsets. The ultimate balance of power will hinge on resilience: how effectively each side can detect, attribute, and neutralize incursions before they cross the threshold into open conflict.

 
 
 

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