Marriott breach traced to Chinese hackers; U.S. plans response

pulse

December 12, 2018 3:18 AM

The hackers are suspected of working on behalf of the Ministry of State Security. The discovery comes as the Trump administration plans a series of actions targeting China’s trade, cyber and economic policies.

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The cyberattack on the Marriott hotel chain that collected passport information or other personal details of roughly 500 million guests was part of a Chinese intelligence-gathering effort that hacked health insurers, other hotels and the security clearance files of millions more Americans, according to two people briefed on the preliminary results of the investigation.

The Justice Department is preparing to announce new indictments against Chinese hackers working for the intelligence and military services, according to four government officials who spoke on condition of anonymity. The Trump administration also plans to declassify intelligence to reveal concerted efforts by Chinese agents to build a database containing names of executives and U.S. government officials with security clearances.

And the administration is considering an executive order intended to make it harder for Chinese companies to obtain critical telecommunications equipment, a senior U.S. official with knowledge of the plans said.

The coordinated moves stem from a growing concern within the administration that the 90-day trade truce negotiated between President Donald Trump and President Xi Jinping in Buenos Aires, Argentina, two weeks ago may do little to change China’s behavior — including coercing American companies to hand over valuable technology if they seek to enter the Chinese market, as well as the theft of industrial secrets on behalf of state-owned companies.

The hack of Marriott’s Starwood chain is not expected to be part of the coming indictments. But two of the government officials said it has added urgency to the administration’s crackdown, given that Marriott is the top hotel provider for U.S. government and military personnel.

Geng Shuang, a spokesman for the Chinese Ministry of Foreign Affairs, denied any knowledge of the Marriott hack.

Trade negotiators on both sides of the Pacific Ocean have been working on an agreement that would involve a commitment by China to increase purchases of U.S. goods and services by $1.2 trillion over the next several years.

But while top administration officials insist the trade talks are proceeding on a separate track, the broader crackdown on China could undermine Trump’s ability to reach an agreement with Xi.

This article originally appeared in The New York Times.

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