Published on: January 7, 2025
The US Treasury Department has imposed sanctions on Beijing-based Integrity Technology Group, accusing the cybersecurity firm of involvement in state-sponsored hacking campaigns targeting critical American infrastructure. The move has drawn sharp condemnation from China, escalating tensions between the two nations over cybersecurity disputes.
On Jan. 3, 2025, the Treasury’s Office of Foreign Assets Control sanctioned Integrity Technology Group, also known as Yongxin Zhicheng Technology Group. The sanctions block the company’s access to US assets and financial systems, forbidding American entities from conducting business with it.
The US alleges the firm is linked to “Flax Typhoon,” a hacking campaign believed to be backed by the Chinese government, targeting US critical infrastructure. This operation follows a pattern of alleged cyber activities attributed to Beijing, including a broader campaign, dubbed “Salt Typhoon,” which US officials say compromised the private communications of numerous Americans and impacted eight telecommunications companies worldwide.
China has vehemently denied the allegations. Foreign Ministry spokesperson Guo Jiakun accused the US of exploiting cybersecurity issues to “defame and smear” China. “For some time now, the US has been playing up so-called Chinese cyberattacks and has even initiated illegal unilateral sanctions against China,” Guo said at a press conference.
The Integrity Technology Group echoed this sentiment, calling the US accusations baseless. In a statement to the Shanghai Stock Exchange, the company claimed it does not operate in the US or hold assets there, minimizing the sanctions’ immediate impact on its business.
The sanctions come on the heels of reports detailing a separate breach of the US Treasury Department’s systems. Hackers believed to be backed by China accessed unclassified workstations and sensitive documents. This attack exploited a vulnerability in third-party software, highlighting growing concerns over supply chain cybersecurity.
While the US government has taken steps to mitigate these risks, cybersecurity experts warn that such breaches may have far-reaching implications for national security and global relations.
This latest development adds fuel to the ongoing cyber tensions between Washington and Beijing. Both sides have traded accusations of digital espionage and hacking, complicating broader diplomatic relations.
As the situation unfolds, analysts predict further retaliatory measures from both nations, potentially impacting global cybersecurity cooperation. For now, the Integrity Technology Group sanctions signal a firm US stance on safeguarding critical infrastructure from foreign cyber threats.