November 21, 2008

WASHINGTON (AFP) – China has developed a sophisticated cyber warfare program and stepped up its capacity to penetrate US computer networks to extract sensitive information, a US congressional panel warned.

"China has an active cyber espionage program," the US-China Economic and Security Review Commission said in its annual report to the US Congress. "China is targeting US government and commercial computers."

In its 393-page report, the panel also criticized Beijing for exercising "heavy-handed government control" over its economy and "continuing arms sales and military support to rogue regimes" such as Sudan, Myanmar and Iran.

The commission also issued a warning about China's space program. "China continues to make significant progress in developing space capabilities, many of which easily translate to enhanced military capacity," it said.

"Although some Chinese space programs have no explicit military intent, many space systems -- such as communications, navigation, meteorological, and imagery systems -- are dual use in nature," the commission said.

The commission, which was established by Congress in 2000 to analyze the economic and national security relationship between the two nations, said China was investing heavily in cyber warfare.

"Since China's current cyber operations capability is so advanced, it can engage in forms of cyber warfare so sophisticated that the United States may be unable to counteract or even detect the efforts," the commission said.

It said Chinese hacker groups may be operating with government support.

"By some estimates, there are 250 hacker groups in China that are tolerated and may even be encouraged by the government to enter and disrupt computer networks," the commission said.