The recent sanctions imposed by the U.S. Treasury Department on a Chinese individual and a cybersecurity company shed light on the escalating cyberthreat landscape that the United States faces from foreign adversaries. The Chinese national in question, Yin Kecheng, has been branded a “cyber actor” with ties to China’s Ministry of State Security (MSS) and is believed to have played a significant role in the breaches of the U.S. Treasury Department’s networks. These breaches have been linked to a state-sponsored threat group known as Salt Typhoon, which has targeted several U.S. telecom companies, including major players like AT&T, Verizon, and T-Mobile.
This series of sanctions reflects the U.S. government’s ongoing efforts to counter cyberattacks originating from China and other countries like Russia, Iran, and North Korea. The Federal Communications Commission (FCC) also took significant steps by issuing a declaratory ruling that mandates communications services providers to bolster their network security under Section 105 of the Communications Assistance for Law Enforcement Act. Additionally, the FCC proposed new rules requiring these providers to submit annual certifications validating the implementation and updating of their cyber-risk management plans.
Former CISA Director Jen Easterly emphasized the importance of such measures in safeguarding the nation’s critical telecommunications infrastructure against threats posed by foreign actors like China. These actions come on the heels of President Biden’s recent cybersecurity Executive Order, which underscores the administration’s commitment to enhancing national cybersecurity defenses.
The Treasury Department’s sanctions extend beyond Yin Kecheng to include Sichuan Juxinhe Network Technology Co., a Chinese cybersecurity firm implicated in the exploitation of U.S. telecommunications and internet service provider companies. The company’s direct involvement with the MSS and its association with Salt Typhoon underscore the sophisticated nature of the cyber threats facing the U.S. The ongoing hacks into telecom companies that resulted in the theft of metadata of U.S. citizens have sparked widespread concerns among policymakers, with one senator labeling it as the “worst telecom hack in our nation’s history.”
The urgency to address these threats is evident in the FCC’s swift response, spurred by the vulnerabilities exposed by Salt Typhoon. Former FCC Chairwoman Jessica Rosenworcel emphasized the need to update existing rules to align with current cyber threats, highlighting the imperative of fortifying defenses against state-sponsored cyberattacks. The Office of the Director of National Intelligence’s assessment of national security threats in 2024 reiterated China’s status as the most active and persistent cyber threat to U.S. networks, emphasizing the need for proactive measures to counter Beijing’s cyber espionage pursuits.
As the U.S. grapples with the evolving cyber landscape and the growing threat posed by foreign adversaries, the recent sanctions and regulatory actions underscore the government’s commitment to bolstering cybersecurity defenses. The collaboration between federal agencies, private sector entities, and international partners will be crucial in mitigating cyber risks and safeguarding critical infrastructure against malicious actors seeking to exploit vulnerabilities in the digital domain.