Cyber-Attack: Frequently Asked Questions (FAQ)

cyber-attackA common concern of anyone with a personal computer is that of viruses. Viruses can cause harm to the computer and steal information. But, are government and military systems vulnerable as well? What might be stolen? Could cyber-attacks be used to cause physical damage? What other vulnerabilities might be exploited in a cyber-attack? Could an attack disrupt infrastructure such as power grids? All these questions and more are answered in the FAQ below.

1. What is a cyber-attack?

2. How are cyber-attacks carried out?

3. What can be attacked?

4. What are the implications of a cyber-attack?

5. Who has the capability of doing this?

6. What can the government do about this?

7. What can businesses do about this?

8. What can you do about this?


1. What is a cyber-attack?

Source: http://www.gizmocrazed.com/2010/09/top-7-worst-cyber-attacks-in-history/

It is difficult to concisely define a cyber-attack. Not only is there a wide range of possible methods, but each method delivers the attack differently, with various speeds and types of destruction. According to the FBI, "the term was coined in the 1980s by Barry Collin who discussed this dynamic of terrorism as transcendence from the physical to the virtual realm and 'the intersection, the convergence of these two worlds.'" More broadly, a cyber-attack could be described as attack performed within the realm of cyberspace.

A cyber-attack is not a specific weapon; rather, it can be thought of as a strategy. As will be seen later, a cyber-attack is capable of performing a variety of functions, from stealing information and dispersing false information, to destroying a very limited amount of machinery and even causing large-scale blackouts. The former of these two ranges is more commonly referred to as cyber-espionage while the latter is called hostile attacks.  The graph below depicts the startling escalation in the number of cyber-attacks.

Source: http://online.wsj.com/article/SB123914805204099085.html

Simpler, less harmful types of cyber-attacks are, however, part of the everyday life of the majority of the United States population. Anyone who regularly connects to the Internet is exposed to various types of malware (malicious software) including viruses, spyware, worms, trojan horses, SQL injections (typically associated with “hacking”), etc. Such threats can become harmful attacks by simply clicking on unwanted pop-up advertisements or opening the wrong email or attachment. These can suddenly delete computer files, steal personal information or completely destroy a computer. These malicious pieces of software are spread through email, USB drives, downloads, networks and more.

Source: http://www8.hp.com/il/he/hp-news/article_detail.html?compURI=tcm:149-1052475&pageTitle=Manage-Risk-Sustainably-with-HP-Enterprise-Security-Solutions-%7C-HP-IT-Article

2. How are cyber-attacks carried out?

There are 3 basic parts to a cyber-attack:

  1. Access: a method to get inside or gain access to a network or system

  2. Vulnerability: some part of the system that the attacker can take advantage of or manipulate

  3. Payload: the purpose of the attack, namely, what exactly is the target and how significant will the damage be

A safe cracker, for instance, must know where the safe is and how to get into it. The vulnerability would require knowledge of the safe, its locking mechanism and what aspects may be exploited. The payload, in this case, would be a bag full of money. Given these three aspects, prior intelligence is needed to understand what access is available and what vulnerability can be exploited in order to attack precise targets.

A standard computer virus, probably the most common form of a cyber-attack, may gain initial access to a computer or system in two ways: remotely or proximately. Some viruses, such as Conficker, spread through a network of computers (remote access) by exploiting holes in the network security or by attaching an infected USB drive to a computer. Such a virus is not only capable of ruining services on the computer itself, but also of blocking certain websites that might enable the user to eliminate the virus. A virus, Trojan, worm, etc. is primarily the means of carrying out a cyber-attack (see chart above), while the real attack is the virus’ payload.

There are many other forms cyber-attacks may take. A denial of service attack occurs when “an attacker attempts to prevent legitimate users from accessing information or services.” This is typically accomplished when the attacker overloads a system with requests to view information. This would be an example of a remote attack. By extension, a distributed denial of service (DDoS) occurs when multiple computers are involved in a denial of service attack causing an even larger amount of traffic on the target website. This is the same concept as we’ve all experienced with cell phone disruption due to high usage.

Spearphishing is another simple method by which an attack may gain access to a computer system or network. Once some information about a target is acquired, an email is sent purporting to be from a legitimate company asking for information such as usernames and passwords to banking websites or network logins.

Backdoors, or hooks, are placed inside a computer or network in order to create a vulnerability that can be exploited later on.

If direct access is possible, tampering with basic electronics is a simple type of cyber-attack. It is also possible that such software or even hardware could be installed into electronics by the original manufacturer. Some fear that this is what is being done in Chinese-produced microchips for various American computer companies.

Here’s a look at how fast the number of threats have been rising this decade:

Source: http://sip-trunking.tmcnet.com/topics/security/articles/54168-taxpayers-beware-cyber-criminals-seek-intercept-irs-filings.htm

3. What can be attacked?

As cyber-attacks encompass a wide range of methods, they are also capable of affecting a very wide range of targets. Cyber-attacks can affect anything that is connected to a computer or a computer network. This would include not only single computers and network-connected computers but also USB storage devices and even machinery controlled by computer or network equipment. Due to the great diversity of possible targets for cyber-attacks, the next few sections will present several examples of cyber-attacks that have happened in the past.

Despite fear over cyber-attacks on airline services or nuclear facilities, the most common and arguably the most dangerous are attacks on critical infrastructure, as shown here:

Source: http://www.pwc.com/gx/en/transportation-logistics/tl2030

2007 saw the emergence of a Trojan-type virus that goes by the name Zeus. Zeus infects a computer through an email attachment attacking both personal computers and businesses. When opened, the virus installs itself on the computer and is able to log username and password information. As a user fills in information on private websites such as online banking, Zeus copies the entered information and sends it back to a designated location on the Internet. Not only has Zeus been responsible for the theft of $70 million as of 2010, it is still being developed to allow for new functionality and is available for sale around the Internet in “underground” circles. Zeus and other cyber-attacks like it are a large part of the reason that the United States has the most cyber-attacks of any nation.

Source: http://europol.easyred.com/

While causing problems for businesses and individuals, there are other threats capable of compromising our national security. The United States now strongly relies on the Internet across the board, including storing even the most sensitive military documents and technologies. According to an article in the Armed Forces Journal, published in 2008, “the Pentagon uses more than 5 million computers on 100,000 networks at as many as 1,500 sites in at least 65 countries worldwide.” With such a great reliance on this massive network, cyber-attacks have become increasingly useful as a weapon against the United States and any country relying heavily on integrated networks.

In 2008 and 2009, while investigating claims of China spying on institutions in Tibet, a vast and complex network of cyber-spionage was discovered. Dubbed GhostNet, this virus had infected at least 1295 computers in 103 countries and had even gained access to government computers from multiple nations. The virus spread inside an email attachment that appeared to be a valid file. Once inside a computer it provided full control of that computer to an outside source allowing searching and downloading of files from the computer.

In 2007 a coordinated experiment called Aurora, was run between the Idaho National Laboratories and the Department of Homeland Security. A cyber-team was given the task of breaking into a simulated electric generation control system and destroying a generator using only a computer and the Internet. In the end the team of hackers was able to bypass the security protocols of the generators safety system, instruct the generator to exceed its safety limits and, quite literally, tear itself apart.

Here’s a list of significant attacks just during July 2011:

Source: http://paulsparrows.wordpress.com/2011/08/02/july-2011-cyber-attacks-timeline/

In summary, anything relying on computer systems, even the most sensitive data, is capable of being attacked whether remotely over an Internet connection or in proximity through removable devices such as a USB drive.

4. What are the implications of a cyber-attack?

In the case of both cyber- and conventional espionage, plans can be discovered, strategies compromised and secrets stolen. During hostile attacks, systems can be shut down, communications cut off and infrastructure destroyed. An analysis of the many different types of attacks can be found here. Below is a chart showing which systems are the most dangerous and innovative:

Source: http://spectrum.ieee.org/static/hacker-matrix

Contrary to conventional warfare where the identity of the attacker is often known immediately or can easily be discovered, a cyber-attacker is much harder to discover. The Internet can easily provide an impenetrable shield for the attacker’s identity. Due to the size of certain computer networks, it can also be almost impossible to determine that a network is clean. This just adds further complication.

The following video is a controlled exercise demonstrating a cyber-attack on a chemical facility. The participants were divided into two teams: one to protect the replica chemical plant and one to attack it. In the end, the defending team was left with chemical contamination and no power.

The next video is a report of the Aurora experiment discussed above.

With results similar to those of an EMP attack, a large-scale cyber-attack could shut down a large percentage of the nation’s power grid, leaving entire cities in the dark and unable to carry out a large majority of normal business. Depending on the specific target of the attack within the power grid and the payload, power could be out in these locations for months.

Outside of controlled experiments there have been numerous real attacks that have given us an idea of what might be done in the future.

Estonia, like all modernized nations, relies almost entirely on the Internet for many of the most fundamental functions of business and government. Estonia has a government which, according to the following video, transacts all business online and a population who conducts 99% of banking transactions electronically. In 2007, protesting the relocation of a Soviet war memorial in Estonia, groups of Russian hackers devised and carried out plans creating a denial of service in all Estonian networks. The attacks began by shutting down the websites for the country’s president and parliament. The banking networks were also shut down for multiple days essentially cutting off communication of the Estonian banking system from the rest of the world.

In January of 2012, in response to the shutdown of file sharing websites by the United States and New Zealand governments, a hacker group named Anonymous used DDoS attacks to shutdown multiple government, copyright, music and film industry websites including the U.S. Justice Department’s website.

Source: http://gigaom.com/2010/12/15/lets-be-careful-about-calling-this-a-cyber-war/

PlayStation was attacked in April 2011. Many of its online users had credit card information stolen. Following refusal to enable their customers to donate to WikiLeaks, MasterCard and Visa were both shut down by irritated hackers. Google was hacked in 2010. Personal password information and access to accounts was revealed. There is speculation that the Chinese government carried it out in order to access the accounts of government dissidents. Predictably, there are countless more examples of this, but these are some of the highest profile attacks in recent years.

In 2010, the most innovative and physically destructive virus the world has known was unleashed. It was discovered that a virus had been “in the wild” (this refers to a virus being accessible on the world-wide, unsecured Internet) since mid-2009 but had for some reason remained inactive. Closer examination of this virus, Stuxnet, revealed that, while it was reporting back information about the systems it had infected, damage being done to the infected computer was unseen. Stuxnet spread, not through email or infected websites, but with proximity means either through local networks or USB drives. Stuxnet’s target was programmable logic controllers (PLCs) produced by Siemens that control the mechanical operation of many different items worldwide. Specifically, Stuxnet’s targeted the PLCs controlling the uranium enrichment centrifuges at the Natanz nuclear facility in Iran. Once inside the computer networks of Natanz, the virus spread to the PLCs. It instructed the PLCs to increase the rotation speed of the enrichment centrifuges far past operationally safe levels. While this happened, it intercepted warning signals from the controller, silenced alarms, and reported that all was well. Reports of the damage vary but anywhere from 10% to 20% of the centrifuges at Natanz were destroyed.

Source: http://thehackernews.com/2011/12/iran-government-websites-now-on-local.html

As was said before, the implications of a cyber-attack vary as widely as the payload it carries, from simple annoyances, to the theft of private or classified information, to the physical destruction of infrastructure.

5. Who has the capability of doing this?

Almost anybody has the ability to deliver a cyber-attack and they generally focus on the places with the most Internet users and most money:

Source: http://www.idgconnect.com/blog-abstract/304/patrik-runald-global-pointing-fingers-who-blame-cross-border-cyber-attacks

Technically speaking, the only requirement for the execution of a cyber-attack is access to a computer with an Internet connection. Using the Internet for hostile operations, whether against “soft targets,” like individuals or businesses, or against government and military targets, is of great strategic interest to any country. But this is of particular interest to attackers wishing to remain anonymous. Manipulating the route of the attack makes the point of origin very difficult to determine. Further, unlike in conventional warfare, cyber-attacks can be carried out not only remotely but also by small, scattered groups or even individuals. Featured in Wired magazine, a small Romanian town, fittingly nicknamed “Hackerville,” is home to some of the world’s best solo hackers. Though posing a small threat to governments, they have successfully stolen millions of dollars from individuals and businesses around the world.

Attacks against individuals and small targets can be accomplished much more easily than those against high profile, government targets. They most commonly are carried out through email.

Source: http://news.cnet.com/8301-1009_3-20001234-83.html

Through more difficult, attacks against the United States government yield a much greater reward. Here’s a brief overview of some of the cyber-attack history between the United States and other nations:

China

For more than a decade China has been working toward a full modernization of its military. The goal of this modernization is for China to become a force capable of conflicts not only in air, land, sea and space, but also in the cyber-realm, or “fifth domain.” As part of electronic warfare, the People’s Liberation Army (PLA) of China is devoting resources and personnel (“cyber-warriors”) that enable it to protect its own networks and also carry out cyber-attacks against foreign adversaries. 

Source: http://blog.thomsonreuters.com/index.php/tag/cyber-attacks/

Coordinating cyber-attacks with traditional warfare could include theft of strategic information from command centers, theft of technological secrets, sabotage of the defense system, etc. Some argue that China’s efforts in cyber war are “the single largest, most intensive foreign intelligence gathering effort since the Cold War,” and that “Chinese espionage in the United States, which now comprises the single greatest threat to U.S. technology, is straining the U.S. counterintelligence establishment. This illicit activity significantly contributes to China’s military modernization and acquisition of new capabilities.”

Russia

Russia's investment in and malicious use of the Cyber domain are not as extensive. However, the destructive abilities certainly do exist. The previously discussed denial of service attacks on Estonia as well as similar attacks on Georgia during the 2008 military invasion have both been attributed to Russia. However, further investigation suggested these attacks may not have been orchestrated by the Kremlin, but rather by groups of Russians working on their own. Notwithstanding, Russia appears to be making further efforts to develop the capacity for national “information warfare.” While Russia sees the benefit of espionage in cyber-attacks, it also sees the primary use of “informational warfare” as a political weapon that, rather than being used to steal information or destroy infrastructure, can be used to destabilize government and ruin general trust.

According to intelligence officials, both Russia and China have been able to infiltrate United States infrastructure, including the electrical grid. While it appears that no damage was done, successful penetration into such a system provides an opportunity for an attacker to plant a backdoor. Backdoors allow the attacker to return to the system at some point in the future.

Iran

Iran has had its share of dealing with cyber-attacks in the past, particularly with the attack by Stuxnet. Recently, Iran has invested $1 billion in new technology and personnel for use in cyber warfare and cyber defense. They have also been actively recruiting new members for a “cyber-army.” According to the Iranian government, the country is preparing for a full scale cyber war between Iran and Israel. It claims to have the capabilities for counter attacks against both the U.S. and Israel.

North Korea

North Korea has shown its ability to carry out cyber-attacks in the past. In 2009, North Korea was able to shut down the U.S. Treasury Department, Secret Service, Federal Trade Commission and Transportation Department websites as well as sites in South Korea. Far from being short outages, some of these sites were incapacitated for 24 hours or more, with the Transportation Department’s site being offline for 48 hours. According to North Korea, 100 world class hackers are trained every year to deliver cyber-terrorism operations particularly with the intent of causing chaos in South Korea. However, this claim by North Korea is believed to be an exaggeration.

Source: http://firmspy.com/spy-hq/7291/king-wood-mallesons-the-shape-of-things-to-come

6. What can the government do about this?

In late 2008, a signal was discovered attempting to reach an outside network from inside the US Central Command (CentCom). Given CentCom’s connection with all things pertaining to the wars in Afghanistan and Iraq, this raised great concern. The malware, later named Agent.btz, had also infected networks used by the United States to transmit top-secret information to U.S. officials around the world. Networks for this purpose as well as command networks like CentCom are usually “air gapped,” meaning they are completely isolated from the rest of the Internet. However, this does not mean they are not susceptible to attacks. Agent.btz likely entered these networks through proximity access from an infected USB drive that had been used in an unsecured computer. But critical information was not transmitted to outside computers. This attack led to the creation of a new division of the US Department of Defense, Cyber Command (CyberCom), to centralize the protection of the United States information security.

Because CyberCom allows the U.S. government extensive power over cyberspace, because its creation was a unilateral executive decision, and given recent SOPA and PIPA legislation proposals, many fear greater governmental invasion of individual privacy and liberty.

Source:http://www.odt.co.nz/news/technology/195087/hackers-retaliate-clampdown-piracy

On the other hand it is argued that the integrity of information and critical infrastructure is vital to national defense, and that therefore sufficient efforts and funds must be allocated to its protection.

7. What can businesses do about this?

Source: http://www.siliconrepublic.com/strategy/item/24856-daily-targeted-attacks-incr

The efforts businesses should put into effect are much the same as the efforts discussed regarding national defense. Unfortunately, given the high costs advanced security systems are often impractical for small businesses. Specifically the FCC outlines 10 important tips for businesses:

  1. Train employees in security principles
  2. Protect information, computers and networks from viruses, spyware and other malicious code
  3. Provide firewall security for your Internet connection
  4. Download and install software updates for your operating systems and applications as they become available
  5. Make backup copies of important business data and information
  6. Control physical access to your computers and network components
  7. Secure your Wi-Fi networks – if you have a Wi-Fi network for your workplace, make sure it is secure and hidden
  8. Require individual user accounts for each employee
  9. Limit employee access to data and information, and limit authority to install software
  10. Regularly change passwords

Though not always as useful or convenient as regular networks, networks with critical or confidential information are better secured on air-gapped systems. When critical infrastructure was built, the notion of cyber-attacks was unheard of, let alone a problem. But as the Internet became more widespread, these systems became integrated to enable remote operation. However, this led to vulnerabilities in their systems. Due to the great value and importance of these systems, it is necessary for utility companies like electric and water, to air-gap their networks and controlling systems.

8. What can you do about this?



Source: http://www.informationweek.com/news/170100709

The primary protections against attacks on personal computers are antivirus software and protections built into the computer's operating system (Windows, Mac OS, Linux etc.). Both your operating system and likely your antivirus software will contain firewalls which should always be active. Firewalls essentially serve as a barrier to incoming and outgoing network traffic through your computer.

  1. Conscientiousness is another very important means of keeping personal computers safe.
  2. Do not open suspicious emails and attachments or emails from unknown senders.
  3. Do not click links on the Internet that seem “too good to be true”.
  4. Update your software regularly.
  5. Do not provide personal information including usernames and passwords unless it is certain that the website is legitimate and secure.
  6. Moreover, use discretion even for established websites.
  7. Avoid dealing with companies that have a history of poor cyber-defense.

Source: http://blog.thomsonreuters.com/index.php/cyber-attacks-timeline-graphic-of-the-day/

But what about attacks on infrastructure and military information? Awareness of the issue is important in a discussion of cyber-attacks. Many people have heard about the risks of a cyber-attack on military information, and most have basic antivirus software installed on their personal computer. But too many are unaware of the most important risk to the proper functioning of the nation: critical infrastructure. While there is currently funding for cyber security within the military, such protections, as part of national defense, may need to be perpetuated in the face of budget cuts in order to protect the vital systems holding sensitive military intelligence.

Personal information, while held on personal computers is also held by many companies. Banks, credit card companies, online stores, and more all hold personal information. Because of this, the security of these companies can directly affect the consumer. It is of advantage to every consumer to do business with the more secure companies.

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"China is circumventing international sanctions against Iran by enlisting North Korea’s help in providing the Islamic state with its most advanced intercontinental ballistic missiles and the technical expertise to make those nuclear warhead-capable missiles operational. And now the Communist giant is threatening to come to Iran’s defense should the missile or nuclear sites be attacked."

"The number of unsafe consumer products removed from the European market increased by more than half last year [2007] and China remained the biggest source of potentially dangerous toys, appliances and other merchandise, according to a European Union report."

"Chinese state media lashed out at U.S. Secretary of State Hillary Clinton on Friday in the midst of her six-nation African tour, illustrating the struggle for influence between the U.S. and China over the resource-rich region."

"A senior cyber-security official in China said recently that the country wants to work with other nations to improve cyber security. Yet along with this pledge came another example of the back and forth between nation-states that has become a common feature of many public discussions about security. This time however, it was China pointing fingers at the United States."

The leaked pictures of China's stealth plane have once again put the spotlight on China's military modernisation.

Both governments are facing domestic pressure to take a tougher stand against the other on economic issues.

[A]ccording to the International Monetary Fund (IMF), the 'Age of America' will end and the U.S. economy will be overtaken by China’s economy in real terms by 2016.

"China's Communist Party concluded a generational shake-up of its military top brass Sunday when state media announced the appointment of an army general and a former air-force commander as vice chairmen of its Central Military Commission—the body that controls the armed forces."

"The statement by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products on Thursday was the latest salvo in an escalating battle between China and the U.S. over trade in the renewable-energy sector. Over the past three weeks, each side has accused the other of providing illegal subsidies to prop up its sector."

"The Chinese government has announced retaliatory measures over a planned sale of advanced US weaponry to Taiwan. China's defence ministry said it would suspend military exchanges with the US, impose sanctions on companies selling arms to Taiwan and review wider co-operation on international issues. The confrontation over the $6.3bn (£4bn) arms sale to Taiwan – a self-governing island that...

The US is playing down pictures that appear to show a working prototype of a Chinese stealth aircraft, invisible to radar.

"China has declared its one-party political system to be unshakeable and redoubled a campaign to suppress human rights in the wake of the award of the Nobel peace prize to Liu Xiaobo, the democracy activist."

"China appears to be within two years of deploying submarine-launched nuclear weapons, adding a new leg to its nuclear arsenal that should lead to arms-reduction talks, a draft report by a congressionally mandated U.S. commission says."

In the 1980s and early '90s, Japan bashing was the favorite pastime in Washington. Japan's sin: its large 'contribution' to a growing U.S. trade deficit.

In 2009, despite no cap-and-trade law, no carbon tax and no major reductions mandated by our EPA, U.S. carbon dioxide emissions dropped by 7.1%, more than in any year since they began tracking emissions in 1949.

"Lawmakers clashed with Chinese telecommunication executives Thursday in a high-profile grilling of two Chinese companies that U.S. officials say pose a foreign spying threat to the U.S."

"According to the State Oceanic Administration, 11 unmanned aerial vehicle bases will be built in 11 coastal provinces and regions to monitor the country's vast water areas, Legal Daily reported on Aug 27.

Unmanned aerial vehicles can fly in set routes, recording and sending back timely remote sensing data, improving China's capacity in water monitoring, said Yu Qingsong, director of...

President Obama's goal of creating American jobs has thrust the Chinese currency onto center stage in Washington, where an undervalued renminbi is blamed for the trade deficit with China, and the deficit is blamed for U.S. job losses.

"Chinese intellectuals have signed an open letter calling for a boycott of state television news programmes.

The letter says China's Central Television (CCTV) has turned its news and historical drama series into propaganda to brainwash its audience.

The author of the damning letter told the BBC that the action should at least serve as a health warning to the susceptible public...

"China's government said it will 'proactively' invest in energy projects abroad to secure reliable supplies for its expanding economy, a day after the announcement of two overseas acquisitions for $16.6 billion."

"Terming the South China Sea as a disputed region, China has warned India to refrain from undertaking oil exploration in the resource-rich Vietnamese blocks in order to ensure 'peace and stability' in the area."

"In a tit-for-tat move, China Wednesday warned that it will probe illegal EU subsidies to counter Brussels' reported decision to launch anti-dumping cases against Chinese telecom firms for receiving subsidies.

With the European Union reportedly poised to launch trade cases against telecom equipment makers in China, accusing them of getting subsidies, Beijing is investigating if the EU...

"Stereotypical or not, these are some of China's 'soft power' resources."

"The United States is shifting its focus from the Atlantic across to the Pacific. However, if an Arctic century is on the horizon, then China is at the forefront of it. While Washington enhances its relationships across the Asia-Pacific basin, Beijing is busy engaging Arctic Ocean coastal states en masse. The Middle Kingdom is apparently interested in the commercial viability of new shipping...

"There's been an interesting new development in China's use of cyber space as an element in its intelligence and security operations. The People's Liberation Army (PLA) is reportedly funding a vast complex of part-time cyber-devotees to supplement and compliment the official structure of cyber interception and invasion.

Equally as interesting is the willingness of the Chinese...

China’s published defense budget does not include large categories of expenditure, including expenses for strategic forces, foreign acquisitions, military-related research and development, and China’s paramilitary forces.

"China's economic reforms have reached a critical point, and the economy designed to support the Communist Party's rule now calls that rule into question."

"China will overtake the US in the next four years to become the largest economy in the world, says a leading international thinktank."

Robert Kaplan discusses the topic of his article in the May/June 2010 issue of Foreign Affairs, the geography of China and the rise of its navy.

"China's first aircraft carrier has entered into service, the defence ministry says."

"It is evident when China's aircraft carrier carves it way through the waters of the Yellow Sea. It is written between the lines of its growth statistics. It is built into the gleaming walls of the African Union headquarters half a world away. As the country's might increases, China's maxim of 'keeping a low profile' looks increasingly irrelevant, even absurd, to many."

"Researchers in Toronto have released a document that describes what may be the first real evidence of a government-operated cyber-espionage network in action. In a ten-month investigation, the team documented the operation of what they dubbed GhostNet, and its various worldwide infection."

"A vast Chinese cyber-espionage network, codenamed GhostNet, has penetrated 103 countries and infects at least a dozen new computers every week, according to researchers."

Foreign ministers from 27 countries discussed ways to promote confidence-building at an annual Asian regional security forum in Vietnam last week....

"The family of China's next president has amassed a fortune running into hundreds of millions of pounds, according to a hugely damaging new report."

"China's military spending has been rapidly spiraling upward, and the growing amounts are unnerving Beijing's Asian neighbors and policy planners in the Pentagon, who are openly wary about the country's long-term intentions."

"China is using an increasing number of paid 'internet commentators' in a sophisticated attempt to control public opinion.

These commentators are used by government departments to scour the internet for bad news - and then negate it.

They post comments on websites and forums that spin bad news into good in an attempt to shape public opinion.

Chinese leaders seem aware that...

With India, Japan and Russia also investing heavily in defence, a new Asian arms race is under way.

The time has come to challenge all warm and fuzzy assurances that the Chinese Navy does not represent a steadily increasing threat to US interests.

"In just 35 years, China's ruling Communist Party has transformed the country from economic back-water to economic giant. Most Chinese have accepted its authoritarian and often brutal rule because they have grown richer and have seen their country's prestige restored. But as the Party prepares for a major leadership change, can such a rigid political system deliver the reforms China needs to move to the next stage of development?"

"Is the world's most populous nation about to get more crowded? Reports surfaced in international media last week that in an effort to slow the rapid graying of the workforce, couples in Shanghai — the country's most populous city — would be encouraged to have two kids if the parents are themselves only children. Shanghai officials have since denied any policy shift, saying this caveat is...

"Such image building in the nationalistic discourse of modern Chinese foreign relations is a lot further from the truth than the victimization depicted in Chinese discourse. China was oppressed by various powers for much of the 19th and 20th centuries. In contrast, the evidence of a moral, principled, and benign approach has been the exception rather than the rule in the zig-zags of the often...

"China is growing at its slowest pace since the recession -- a worrisome sign for the broader global economy."

"As China's economy slackens to its slowest pace in years, many U.S.-based multinationals are more dependent than ever on the country."

"I was recently invited to lecture at several Chinese universities about 'soft power'—the ability to get what one wants by attraction and persuasion rather than coercion or payment. Since the 1990s, thousands of essays and articles have been published in China on the topic, and the lectures drew large crowds."

"In the last year, America has sought to refocus its diplomatic and military attention to East, rather than Middle East. This reflects both the growing power of Asian economies, as well as the growth in military strength of China, especially through gains in what is known as anti-access and area denial (A2/AD) capabilities."

"Nationalist leader Chiang Kai-shek withdrew to Taiwan, with two million refugees, vowing the reclaim the mainland.

With the influx of so many refugees, resentment grew between the millions of native Taiwanese and the mainland newcomers. The conflict reached such a point that Chiang imposed a 'perpetual' martial law over the island for the next 38 years. Thousands of opponents were...

China and Taiwan, while in practice maintaining a fragile 'status quo' relationship, periodically grow impatient with the diplomatic patchwork that has kept the island separate from the Communist mainland since 1949.

"China should complete its transition to a market economy -- through enterprise, land, labor, and financial sector reforms -- strengthen its private sector, open its markets to greater competition and innovation, and ensure equality of opportunity to help achieve its goal of a new structure for economic growth."

"China is full of contradictions. The booming economy has lifted several hundred million people out of poverty, yet inequality has worsened and labor abuses are rampant. Rapid economic growth has made China a serious global competitor with the United States. Yet that economic success has also produced severe environmental problems, including a sharp rise in energy consumption. There is now a...

"NO MATTER how often China has emphasised the idea of a peaceful rise, the pace and nature of its military modernisation inevitably cause alarm. As America and the big European powers reduce their defence spending, China looks likely to maintain the past decade's increases of about 12% a year. Even though its defence budget is less than a quarter the size of America's today, China's generals...

"In the last year, America has sought to refocus its diplomatic and military attention to East, rather than Middle East."

China’s economy is the world’s second biggest, with a $5.8 trillion gross domestic product that eclipsed Japan in 2010. Will China pass the United States? When?

Chinese investment in the U.S. is commonly misunderstood, both the size of holdings and the forces behind them.

The People’s Republic of China (PRC) maintains the world’s largest military force, based on its manpower.

"In recent years, 'public opinion' in China has been accredited more and more often as a force driving China's foreign policy. For example, analysts inside and outside China have attributed Beijing's rising assertiveness in international relations in part to the need of the government to cater to rising nationalism at home. The logic of many of these analysts is that expressions of Chinese...

"The Chinese government reported its lowest quarterly GDP growth in three years, with second-quarter GDP growth at an annual rate of 7.6 percent. Even while the U.S. feels the economic headwinds from the European crisis across the Atlantic, this slowdown creates yet another weight on the American economy from the other side of the world."

"For the first time China is close to reaching a 'credible' nuclear deterrent based on land-based, submarine-launched and air-dropped nuclear weapons, a draft US report warned Friday."

"A Chinese-born engineer was convicted Thursday of stealing trade secrets critical to the U.S. space program in the nation's first economic espionage trial.

A federal judge found former Boeing Co. engineer Dongfan 'Greg' Chung guilty of six counts of economic espionage and other charges for taking 300,000 pages of sensitive documents that included information about the U.S. space...

"U.S. Secretary of State Hillary Clinton urged China and Southeast Asian nations to keep negotiating to resolve disputes in the South China Sea, despite Chinese efforts to keep the issue off the table in international talks."

"Secretary of State Hillary Rodham Clinton on Saturday ventured north of the Arctic Circle and urged international cooperation in a region that could become a new battleground for natural resources."

"The unexpectedly rapid expansion of China's Confucius Institutes since their inception in 2004 has prompted many to consider them a soft power success story.

But such a quick rise is bound to lead to a certain amount of scrutiny which, combined with the general apprehension surrounding China's increasing economic and political clout, has brought about a something of a backlash. Indeed...

"The following article adds to the growing corpus of material related to New Sinology published by China Heritage Quarterly. A crucial aspect of our approach to Chinese Studies is how, in an age of prosperity for China and concomitantly Chinese Studies, diversity of approach and of understanding of 'things Chinese' can be fostered and protected. The present essay highlights issues related to '...

"Here's an updated version of our Cyber Attacks graphic showing a world map and chart illustrating targeted cyber attacks on more than 70 companies, government bodies and organizations the last five years as compiled by software maker McAfee."

"The Pentagon has concluded that computer sabotage coming from another country can constitute an act of war, a finding that for the first time opens the door for the U.S. to respond using traditional military force.

The Pentagon's first formal cyber strategy, unclassified portions of which are expected to become public next month, represents an early attempt to grapple with a changing...

"When will China emerge as a military threat to the U.S.? In most respects the answer is: not anytime soon—China doesn’t even contemplate a time it might challenge America directly. But one significant threat already exists: cyberwar. Attacks—not just from China but from Russia and elsewhere—on America’s electronic networks cost millions of dollars and could in the extreme cause the collapse...

"The Chinese have called it their 'Underground Great Wall' — a vast network of tunnels designed to hide their country’s increasingly sophisticated missile and nuclear arsenal.

For the past three years, a small band of obsessively dedicated students at Georgetown University has called it something else: homework.

Led by their hard-charging professor, a former top Pentagon official...

"The digital terrestrial television (DTTV) network will cover all of China in three years according to Jiang Wenbo, president of the Academy of Broadcasting Planning under the State Administration of Radio Film and Television (SARFT), speaking at a recent broadcast forum.

DTTV deployment will be in two phases. The first phase will see HDTV and SDTV programmes being delivered to 37 major...

"Cyberspies have penetrated the U.S. electrical grid and left behind software programs that could be used to disrupt the system, according to current and former national-security officials.

The spies came from China, Russia and other countries, these officials said, and were believed to be on a mission to navigate the U.S. electrical system and its controls. The intruders haven't sought...

"It is time for policymakers in the United States and other countries to begin responding to today's reality for Chinese mercantilism represents a fundamental threat to not only the U.S. economy, but to the entire system of market and rules-based globalization."

"Hackers have attacked America’s defense establishment, as well as companies from Google to Morgan Stanley to security giant RSA, and fingers point to China as the culprit. The author gets an exclusive look at the raging cyber-war—Operation Aurora! Operation Shady rat!—and learns why Washington has been slow to fight back."

"Both parties have placed America's relations with the Asia-Pacific region at the center of their foreign policy priorities, with clear expectations that China's economic weight, strategic intentions, and military capabilities will increasingly impact on U.S. policy choices."

"For at least five years, a high-level hacking campaign—dubbed Operation Shady rat—has infiltrated the computer systems of national governments, global corporations, nonprofits, and other organizations, with more than 70 victims in 14 countries. Lifted from these highly secure servers, among other sensitive property: countless government secrets, e-mail archives, legal contracts, and design...

"As the fastest growing global super-power, China commands attention by all the super-powers and especially by the middle powers all over the world. Pundits ask whether Islamic Banking, which China looks upon favorably, will be a new challenge to Wall Street. Islamic banking will not pose a quantitative challenge in terms of nominal assets during our lifetime, but it has the potential to...

"As NASA retreats from an ambitious human spaceflight program for the foreseeable future, foreign countries are moving ahead with their own multibillion-dollar plans to go to the moon, build space stations and even take the long voyage to Mars.

Although most of the world still lags far behind the United States in space technology and engineering know-how, other nations are engaging in a...

"A Chinese woman who came to Canada to teach Chinese language at McMaster University in Hamilton says she was required to sign a statement promising not to practice Falun Gong in order to obtain her position.

Sonia Zhao says she was warned she would face punishment if she breached the agreement, which she said all volunteer teachers at Confucius Institutes are required to sign before...

"Cyber spies have once again hacked into a major US system – the target this time being the $300 billion joint strike fighter programme of the US forces and the British Royal Navy, which is aimed at homogenising the air defence needs of the two armed forces. The spy ring, widely dubbed GhostNet, is reported to be based in China, though the Chinese government has denied any involvement."

"The following graphic lists the ten most/least corrupt countries based on Transparency International’s Corruption Perceptions Index for 2011. The Corruption Perception Index assigns countries and territories with scores between 0 (highly corrupt) and 10 (very clean). New Zealand tops the list as the least corrupt country, while North Korea and Somalia are all the way at the bottom."

"Google moved quickly to announce that it would stop censoring its Chinese ­service after realising dissidents were at risk from attempts to use the company's technology for political ­surveillance, according to a source with direct ­knowledge of the internet giant's most senior management.

As the US intervened in Google's challenge to Beijing, the source told the Guardian the company's...

"Hackers seeking source code from Google, Adobe and dozens of other high-profile companies used unprecedented tactics that combined encryption, stealth programming and an unknown hole in Internet Explorer, according to new details released by the anti-virus firm McAfee."

"Once subtle in the making, we are watching the unfolding of a dramatic shift in international politics."

"So from EU and American perspectives, China’s position on Iran has been neither as unhelpful nor as principled as feared. With the Communist Party’s ten-yearly leadership transition looming in the autumn, its leaders’ preoccupations lie at home. They do not want to find China caught in the middle of a huge international crisis. They have a genuine interest in maintaining peace, and will not...

"MUSCATINE, Iowa—This small city on the Mississippi River has long boasted that Mark Twain briefly called it home in 1854. Now, residents realize they have a more unusual bragging point: Muscatine played a minor but memorable role in the ascent of Xi Jinping, the man expected to become China's top leader this fall.

Twenty-seven years ago, Mr. Xi, then an up-and-coming official in a pig-...

In my latest Atlantic cover story, which is out now, I interview Secretary of State Hillary Rodham Clinton about America's response to the Arab Spring.

"American companies should avoid doing business with China's two leading technology firms because they pose a national security threat to the United States, the House Intelligence Committee is warning in a report to be issued Monday."

"Today Americans go to the polls to elect their next president. The Diplomat presents three different views from China, Australia and S. Korea."

What is the secret of China’s success? While the US, Europe and Japan have been struggling, China’s economy has doubled in size in real terms every seven to eight years for the past three decades.

"China's manufacturing advantage over the U.S. is actually due to a complex array of unfair trade practices, all of which are illegal under free-trade rules."

"Mohan says Indians watching how the U.S. presidential race shapes up show a growing appreciation of 'how political developments within the United States can affect Indian interests.'"

"China's economy, after prolonged signs of weakness, now appears to be stabilizing. Good news? That is not clear, because it is stabilizing at a lower rate of growth. The great, big boom years—14.2 percent growth at their rosiest, in 2007—may be over. This is important news for all of us and not necessarily what we want to hear."

"The U.S. debt was more than $14.3 trillion during the so-called debt crisis of 2011, when the level of borrowing reached its statutory limit and the president warned of a potential default if the cap wasn't raised.

So who owns all that U.S. debt?

About 32 cents for every dollar of U.S. debt, or $4.6 trillion, is owned by the federal government in trust funds, for Social Security...

"IN THE spring of 2011 the Pew Global Attitudes Survey asked thousands of people worldwide which country they thought was the leading economic power.

Chinese President Hu Jintao has said China has no interest in pursuing an arms race or exerting military dominance over other nations.

South Korea has abruptly backed off from signing a historic agreement to share military intelligence with Japan in a move that highlights the century-old tensions between the two countries.

"India is being pulled into a complex and increasingly tense territorial dispute in the South China Sea, with China repeatedly warning ONGC, the Indian state oil company, that its joint exploration plans with Vietnam amount to a violation of Chinese sovereignty."

"China is the future, as you may have heard. But that future has not quite yet arrived. And the fact is, in 20 years China won't be quite like any country in the West -- no matter how China evolves, it's not going to be some neophyte version of a stable Western country. It'll be a behemoth quite unlike any other developed nation in the world."

Take a look at how China tries to wage a "war on the dollar," and why they might be doing this.

"INS encouraged relatively free and open immigration during the eighteenth and early nineteenth centuries, and did not question that policy until the late 1830s. After certain states passed immigration laws following the Civil War, the Supreme Court in 1875 declared that regulation of immigration is a Federal responsibility. Thus, as the number of immigrants rose in the 1880s and economic...

"The impending cyber threat requires the immediate attention of Congress, according to a top intelligence official who singled out China, Russia and a failure of policy keeping up with the speed of technology as top threats to the nation’s critical networks."

"As China's economy and exchanges with the world have seen rapid growth, there has also been a sharp increase in the world's demands for Chinese learning. Benefiting from the UK, France, Germany and Spain's experience in promoting their national languages, China began its own exploration through establishing non-profit public institutions which aim to promote Chinese language and culture in...

"The foundation of Iran’s nuclear program can be traced to extensive Chinese and Russian cooperation in the 1990s, according to a former U.S. intelligence official who specialized on Tehran’s program."

"As has been widely reported, Mallesons partners voted last Wednesday to approve the merger with Chinese firm King & Wood. Not that we thought they’d do otherwise, despite our controversial editorial to the contrary."

"The Cold War taught us that inefficient planned economies can execute priority projects well. Think Sputnik, the Moscow Olympics, and Russian nuclear physics. Although its output never reached half that of the U.S., the Soviet Union held us to rough military parity until the end of the Cold War. China will choose a new leadership in 2012, culminating a power struggle between reformists and...

It may seem like the country that used to make everything is on the brink of making nothing. In January, 207,000 U.S. manufacturing jobs vanished in the largest one-month drop since October 1982 (see chart above).

"An electronic spy network, based mainly in China, has infiltrated computers from government offices around the world, Canadian researchers say.

They said the network had infiltrated 1,295 computers in 103 countries."

"The cyberattacks on Google and 30 other companies were the most sophisticated in years, according to the computer security company's CTO."

"The call to get tough with China came as Xi Jinping, the Chinese leader-in-waiting and the man Mr Romney would deal with if he elected in November, made a high-profile visit to the US.

'We can't base our policy on some theory about how we might be able to influence what goes on in China. We have to base it on the balance of power and what our interests are,' said Aaron Friedberg, a...

As the commander in chief of the massive People’s Liberation Army (PLA), President Hu Jintao plans to reinforce his leadership with his mandate to stamp out corruption among the force’s ranks.

"The economy is not producing nearly enough jobs to replace the ones that are being lost to a cheaper workforce overseas."

"A New Jersey man who allegedly misappropriated sensitive military technology and exported it to China was arrested by federal agents on Tuesday.

Sixing Liu, a 47-year-old Chinese-born permanent resident of the U.S., was charged with one count of exporting defense-related technical data without a license."

"An exclusive preview of an economic report on China, prepared by the World Bank and government insiders considered to have the ear of the nation's leaders, offers a surprising prescription: China could face an economic crisis unless it implements deep reforms, including scaling back its vast state-owned enterprises and making them operate more like commercial firms."

"In the latest step in its naval modernization and expansion, China recently announced that it is accelerating serial production of an advanced destroyer. This will tilt the regional balance of power at sea in its favor and put it in a stronger position to enforce its sovereignty claims over Taiwan and in the South and East China Seas."

"Newt Gingrich isn’t the only politician who’s freaked out by China and Russia’s online spying. But the new Republican presidential frontrunner may be the highest-profile political figure all but openly calling for cyberwar with Moscow and Beijing.

'I think that we have to treat state-based covert activities as the equivalent of acts of war,' Gingrich said in response to a question...

"For decades, Beijing has maintained that the Dalai Lama is a separatist, but Tibet's exiled spiritual leader once had a special relationship with the father of Xi Jinping, the man in line to become China's next president.

Few people know what Xi, whose ascent to the leadership is likely to be approved at a Communist Party congress later this year, thinks of Tibet or the Dalai Lama....

"The ability to visit a foreign country without the cost and hassle of obtaining a visa is a welcome bonus for any traveller. It is also a barometer of a country's international alliances and relations. A report released on August 25th by Henley & Partners, a consultancy, shows that Britons have the fewest visa restrictions of the 190-odd countries (and territories) for which data are...

"Only the Chinese government knows how many nuclear weapons China has. As in most other nuclear weapon states, the number is a closely held secret. Even so, it is possible to make best estimates of the approximate size that benefit the public debate.

A recent example of how not to make an estimate is the study recently published by the Asia Arms Control Project at Georgetown University...

"President Obama announced Tuesday the creation of a Trade Enforcement Unit, singling out China as a country that has had an unfair advantage over American competitors and requires more scrutiny."

"President Barack Obama declared Thursday that the United States will take an expanded role in shaping the Asian Pacific region, with an increased military presence one step of that policy.

'Our enduring interests in the region demand our enduring presence in this region,' Obama said in a speech to the Australian Parliament. 'The United States is a Pacific power, and we are here to stay...

"While there are numerous challenges for President Obama to tackle in his next administration, China does not have to be one of them."

"Asia's return to the center of world affairs is the great power shift of the twenty-first century. In 1750, Asia had roughly three-fifths of the world's population and accounted for three-fifths of global output. By 1900, after the Industrial Revolution in Europe and America, Asia's share of global output had shrunk to one-fifth. By 2050, Asia will be well on its way back to where it was 300...

In his State of the Union address, President Barack Obama urged Americans and Congress to embrace this generation’s Sputnik moment and spend more on technology and innovation to spur economic growth.

"Hackers who appear to be based in China have conducted a 'coordinated, covert and targeted' campaign of cyber espionage against major Western energy firms, according to a report expected to be issued Thursday by cybersecurity firm McAfee Inc."

"For decades, American manufacturers of everything from blue jeans to semiconductors have searched the world for the cheapest labor they could find.

It may have cost hundreds of thousands of American jobs, but it's made American products more affordable. Now, some of the most familiar companies -ones we deal with every day - are moving a whole new class of jobs overseas.

They...

"Americans encouraged relatively free and open immigration during the eighteenth and early nineteenth centuries, and did not question that policy until the late 1800s. After certain states passed immigration laws following the Civil War, the Supreme Court in 1875 declared that regulation of immigration is a Federal responsibility. Thus, as the number of immigrants rose in the 1880s and...

U.S. intelligence agencies estimate it could take Beijing at least two more years 'to produce a modern force capable of defeating a moderate-size adversary.'

"The president of the Philippines made a direct pitch to the White House Friday to help bolster his country's relatively weak defenses as the island nation increasingly finds itself tangled in territorial conflicts with China."

"This weekend, leaders from the United States and China will gather in Cambridge to examine challenges facing the financial sectors of the two countries."

"India's massive power outages last week shocked many people who thought that India was on course to become a new economic super power, like China, where such outages are unheard of. NPR's Julie McCarthy and Frank Langfitt join guest host Linda Wertheimer to discuss attitudes toward infrastructure in the two emerging economies."

"As the 2012 State of the Union approaches, the public continues to give the highest priority to economic issues. Fully 86% say that strengthening the economy should be a top priority for the president and Congress this year, and 82% rate improving the job situation as a top priority. None of the other 20 issues tested in this annual survey rate as a top priority for more than 70% of Americans...

"U.S. economic growth picked up in the third quarter, boosted by stronger consumer spending, an improving housing sector and increased defense spending."

"The announcement that China's Cnooc Ltd. intends to buy Canadian energy producer Nexen for $15.1 billion invites many questions. One surprisingly likely to be overlooked is whether this deal makes business sense for China. To get the ball rolling, we'll start with something more basic still: Why does Cnooc exist?"

On May 17th, after four years of research, the Conference Board, a research group, unveiled a new monthly index of leading indicators, which aims to foretell China’s immediate economic future.

"A WEEK before President Hu Jintao's visit to America on January 18th the appearance of a giant bronze statue of Confucius on the east side of Tiananmen Square caused a stir in the Chinese capital. He is the first non-revolutionary to be commemorated on the hallowed ground of Chinese communism. The party, having once vilified the ancient sage, now depends on him in its attempts at global...

"A decade after its entry into the World Trade Organization (WTO), China has become the United States' fastest-growing export market and one of the nation's largest trading partners. The past ten years have witnessed significant progress in China, including strengthening its global cooperation, enhancing its integration into the world economy, and rapidly increasing its participation in...

"Someday, U.S. economic dominance will be a distant memory. A new report is showing just how soon that might be."

"Hackers in China are the world’s 'most active and persistent perpetrators' of economic cyber espionage, and Russian spy agencies are actively seeking to steal U.S. technology, according to a report released by American intelligence services on Thursday.

The 2011 report by the Office of the National Counterintelligence Executive (ONCIX) included a focus on cyber threats for the first...

"By one well-known (if fictitious) criterion, the purpose of a space programme is to boldly go where no man has gone before. China, however, has a different plan: to boldly go back where men have already been. Specifically, with the release on December 29th of an official space-policy paper, it has said it wants to send people to the moon."

"RSA has traced the attack against its network, resulting in the compromise of sensitive information relating to its two-factor SecurID authentication system, to two groups, working for one nation state."

"The Middle East is undergoing a historic transformation. Parts of the region are up in flames, and Asia's primary powers either have no role or a destructive one."

"It was the week before Christmas, and D.A. Henderson was alarmed about germs. He isn't easily rattled: Dr. Henderson led the successful worldwide effort to eradicate smallpox in the 1970s, and he directed the U.S. Office of Public Health Emergency Preparedness after the deadly anthrax letter attacks and the destruction of the World Trade Center in 2001. But recently not just one but two...

"China's efforts to assert its claims to the disputed South China Sea got a boost as regional talks to resolve the issue broke down despite U.S. support, even as Beijing made fresh moves that underscore its increasing presence in the region."

"Security experts say Google, along with dozens of other major companies, was the victim of a concerted espionage effort that they say came from within China and exploited flaws in e-mail attachments to get into networks of major financial and technology firms.

At least 34 companies, including Adobe, Symantec, Yahoo and Dow Chemical, were attacked, according to industry sources. On...

"In a rare bipartisan vote, the Senate on Monday voted 79 to 19 to take up a bill that would punish China for manipulating its currency, risking a potential trade war with the economic giant.

Though prospects for the bill in the House are seen as uncertain, jobs lost due to competition with China is a blistering issue for voters, especially in the nation’s industrial heartland.

...

"A massive advanced persistent threat (APT)-type attack campaign has been ongoing worldwide for five years that has stolen intellectual property from 70 government agencies, international corporations, nonprofits, and others in 14 countries, according to a new published report in Vanity Fair.

The so-called 'Operation Shady Rat,' which is detailed in a new report by McAfee, has mostly...

"On Thursday, the U.S. Commerce Department issued a preliminary decision levying steep tariffs against Chinese solar manufacturers, finding they illegally dumped cheap photovoltaic cells on the American market."

"The solar trade war heated up Thursday when China's Commerce Ministry published a preliminary finding that state renewable energy polices in the U.S. violate free-trade regulations."

"From democratic Mongolia to once-hostile Vietnam and long-isolated Laos, Secretary of State Hillary Rodham Clinton this week faced governments eager to embrace the United States as a strategic counterweight to China's expanding military and economic dominance of the region, while still lukewarm about American demands for greater democracy and rule of law."

"The U.S. Department of State is backing down from its insistence that 600 Chinese-language schoolteachers affiliated with university-based Confucius Institutes leave the country by the end of June because of visa problems. ...

The State Department issued a policy directive a week ago to the roughly 80 American universities that host Confucius Institutes, the Chinese-government-...

"More than a decade and a half after the Cold War ended, the world's combined stockpile of nuclear warheads remain at a very high level: more than 20,500. Of these, some 4,800 warheads are considered operational, of which nearly 2,000 U.S. and Russian warheads are on high alert, ready for use on short notice."

"More malware is now coming out of China than from any other country, according to a new report from Symantec.

The United States still leads the world in the number of malware attacks sent from mail servers. Symantec's report found U.S. mail servers responsible for distributing 36.6 percent of all global malware in March, followed by China at 17.8 percent and Romania at 16.5 percent....

This article reports on the aerial attacks ending a nominal truce in the Syrian conflict. Different international views on the Syrian regime have kept the U.N. from imposing tougher sanctions on the region.

"Tensions between China and other nations bordering the South China Sea are escalating, with the oil and gas resources that lie beneath those waters playing a central role."

"Throughout the nineteenth century, China's emperors had watched as foreigners encroached further and further upon their land. Time and again, foreigners forced China to make humiliating concessions. Foreign regiments, armed with modern weapons, consistently defeated entire imperial armies. Now, as a new century was about to begin, Tsu Hsi, empress dowager of the Ch'ing Dynasty, searched for a...

This brief article describes the events of the Boxer Rebellion and the role the United States played in it.

"China may have no intentions of using its growing military might, but that is of little comfort for Western countries. From the World Trade Organization to the United Nations, Beijing is happy to use its soft power to get what it wants -- and it is wrong-footing the West at every turn."

"AT A meeting of South-East Asian nations in 2010, China's foreign minister Yang Jiechi, facing a barrage of complaints about his country's behaviour in the region, blurted out the sort of thing polite leaders usually prefer to leave unsaid. 'China is a big country,' he pointed out, 'and other countries are small countries and that is just a fact.' Indeed it is, and China is big not merely in terms of territory and population, but also military might."

"IF EVER a clash was inevitable between one country's commercial law and another's business culture, it would be between America's Foreign Corrupt Practices Act (FCPA), which seeks to punish firms that bribe government officials, and China, where many businesses are owned by the government and bribery is endemic."

"The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has signed an agreement with ACCION International, a US-based nonprofit organization, to invest USD 1 million in ACCION’s Chinese affiliate, ACCION Microfinance China (AMC). The investment will enable AMC to expand financial services in its primary region of operation, inner Mongolia, with loans...

"China's navy appears on the verge of creating a new class of warship. It could eventually alter the balance of naval power in the region."

"Last year, the U.S. Navy bought 59,000 microchips for use in everything from missiles to transponders and all of them turned out to be counterfeits from China.

Wired reports the chips weren't only low-quality fakes, they had been made with a 'back-door' and could have been remotely shut down at any time.

If left undiscovered the result could have rendered useless U.S. missiles...

"'The week that changed the world,' as President Nixon called his historic 1972 visit to China, made for a eight-day television extravaganza — and a public relations coup for hosts and guests alike. For eight days and nights, American television audiences tuned in to a spectacular parade of images from China, the first they had seen in more than twenty years."

The United States began to implement a more open policy with China in the 19th century. This was particularly the case in the realm of trade. Though immigration between the two nations was still minimal, the trade agreements help strengthen diplomatic ties.

"The growing emphasis on Asia as a focus of U.S. national security planning, known as the 'pivot to the Pacific,' is discussed in a new report from the Congressional Research Service."

"When China’s president, Hu Jintao, visits here next week, the exchange rate between Chinese and American currency will inevitably become a big topic of conversation.

China has been holding down the value of its currency, the renminbi, for years, making Chinese exports to the United States cheaper and American exports to China more expensive. The renminbi’s recent rise has been too...

"Pakistan and India are upgrading their Cyber War capabilities, partly by calling on allies for help. India has become a big customer of Israeli military equipment, and this now includes assistance in protecting themselves from Cyber War threats, especially from Pakistan. Meanwhile, Pakistan has found China to be a useful source of Cyber War technology. While Israel has some of the best...

"Since World War II, despite the costly flare-ups in Korea and Vietnam, the United States has proved to be the essential guarantor of stability in the Asian-Pacific region, even as the power cycle shifted from Japan to the Soviet Union and most recently to China. The benefits of our involvement are one of the great success stories of American and Asian history, providing the so-called second...

"Throughout history new technologies have revolutionised warfare, sometimes abruptly, sometimes only gradually: think of the chariot, gunpowder, aircraft, radar and nuclear fission. So it has been with information technology. Computers and the internet have transformed economies and given Western armies great advantages, such as the ability to send remotely piloted aircraft across the world to...

Rock music icon Bob Dylan avoided controversy Wednesday in his first-ever appearance in Communist-led China, eschewing the 1960s protest anthems that defined a generation and sticking to a song list that government censors say they preapproved....

"On Feb. 27, a diplomatic process will begin in Geneva that could result in a new treaty giving the United Nations unprecedented powers over the Internet."

"The latest U.S. trade figures contain some good news for the U.S., in the short term at least. In 2010, the U.S. trade deficit was $497.8 billion, which is up from $374.9 billion in 2009 but still almost 30 percent below the 2008 trade deficit of $698.8 billion. The 2010 trade balance comprised a trade in goods deficit of $646.5 billion and a trade in services surplus of $148.7 billion. While exports of goods were up $222.1 billion over 2009, imports were up $352.4 billion. Exports of services were also up $40.5 billion in 2010 compared to the increase in services imports of $23.8 billion."

"Back in January, we featured a post where we looked at who are the largest holders of the U.S. national debt. Since that time, the U.S. Treasury has revised their data, specifically to identify who the real foreign owners of the U.S. national debt are."

"The United States and China are gearing up for a trade war that could catch American users of solar energy in the crossfire."

"China's allegation that renewable- energy subsidies in five U.S. states violate free-trade rules ratchets up a potentially costly trade war between the world's two largest economies."

The moral issue in the U.S.-China crisis is being widely ignored. There should be no mistake about the ultimate responsibility for the collision between the American reconnaissance plane and the Chinese jet fighter.

"A hole in the ground means different things to different people. But what about a complex network of caverns more than 3,000 miles in length, deep underground, wide enough for two or three train cars, and used to keep nuclear weapons?

Prompted by a recent report by a Georgetown University professor, a debate has emerged among academics and arms control policy wonks about what that...

"So, America has decided. President Barack Obama has been returned for another term. Now it is China's turn. In the space of one week the world's two great powers decide their immediate futures."

"Solar companies Suntech Power Holdings Co Ltd (STP.N) and Trina Solar Ltd (TSL.N) said their first-quarter margins were squeezed as they set aside money to offset anti-dumping tariffs imposed by the U.S. government on solar panel imports from China.

The U.S. Commerce Department set punitive tariffs last Thursday after ruling in favor of the local firms that said Chinese exporters were...

The two countries are holding a Strategic and Economic Dialogue (S&ED) in Beijing, and U.S. Secretary of State Hillary Clinton said they would cover many of the contentious commercial and foreign policy issues between the countries.

"The United States seeks to build a positive, cooperative, and comprehensive relationship with China by expanding areas of cooperation and addressing areas of disagreement, such as human rights. The United States welcomes a strong, peaceful, and prosperous China playing a greater role in world affairs and seeks to advance practical cooperation with China in order to build a partnership based...

"China almost certainly would mount a cyberattack on the U.S. in the event of a conflict, and the U.S. has no clear policy to determine how to respond appropriately, a congressional advisory panel is set to warn on Thursday."

"A White House letter promising the U.S. would give 'serious consideration' to selling Taiwan new F-16 fighter jets has reopened the sensitive topic of weapons sales to the island ahead of top-level U.S.-China meetings next week."

"The U.S. trade deficit rose in March at the fastest rate in 10 months."

"The Obama administration on Friday warned China against further moves to tighten control over a disputed section of the South China Sea, as tensions rose in the flashpoint region."

"China and the U.S. made little visible progress in resolving thorny diplomatic disputes during a visit by Secretary of State Hillary Clinton on Wednesday, as both sides stuck to long-standing positions on issues from regional territorial claims to violence in Syria.

Meanwhile, the Chinese government stayed silent on why Vice President Xi Jinping unexpectedly pulled out of a planned...

"The U.S. government should block a bid by China's state oil company CNOOC for Canadian oil company Nexen until China's government provides fair access for U.S. companies that want to invest in China, a top Democratic senator plans to tell Treasury Secretary Timothy Geithner on Friday."

"While Beijing pushed for Pyongyang to open up to foreign investors, Washington announced new sanctions that would inevitably impede such plans. Beijing is concerned that North Korea’s deep economic crisis will compound the political instability surrounding any handover of power. According to the Chinese media, discussions between Kim and Chinese leaders focussed on Beijing’s demand for...

China must be given a seat at the top-table of world economic affairs, the US treasury secretary, Timothy Geithner, said yesterday as he moved to reassure China that its investments in the US dollar were safe.

"In the recent past, China has defended its investment in US Treasury bonds. Meanwhile, there is concern that its position as the biggest investor in US debt may become political as well as economic. Treasury bonds are how the US - and all governments for that matter - borrow money: they issue government securities, which other countries and institutions buy. So, the US national debt is owned...

"A vast electronic spying operation has infiltrated computers and has stolen documents from hundreds of government and private offices around the world, including those of the Dalai Lama, Canadian researchers have concluded.

In a report to be issued this weekend, the researchers said that the system was being controlled from computers based almost exclusively in China, but that they...

"Operation Aurora, the moniker given to the attacks on Google and several others, has developed into a security nightmare and political chess game. With so many questions left unanswered, there is still no clear proof that Aurora was a government attack. In truth, public information points not to a sanctioned attack by the Chinese government, but Malware kits and criminals keeping with...

"As the scandal surrounding Bo Xilai and his wife Gu Kailai has spiralled into the biggest crisis confronting Beijing for years, US officials repeatedly refused to comment on the power struggle."

"In reality, any threat from China will take a far less antiquated [atomic bomb] form. Just as it is already a world leader in future technologies - such as solar panels - so it has invested deeply in cyberwarfare, which it routinely uses to steal sensitive industrial materials such as blueprints.

If it ever clashed with the US (and a naval conflict in the North Pacific is the most...

"China shocked the world this weekend when it announced its largest trade deficit in more than two decades."

Investors and pundits alike have shown unbounded excitement, and some anxiety, about China’s economic growth. Extrapolating current trends, some forecasters predict that China’s economy will vault ahead of America’s in 15 years.

"Accusations of currency manipulation are causing tension, and world leaders are hoping the contentious topic won't turn this week's G-20 gathering in Seoul into an all-out global brouhaha.

But a fiery debate may be unavoidable, now that the world's two largest economies, the United States and China, are in an international spat over the issue.

The United States has accused China...

"Xi Jinping, ethnic Han, native of Fuping, Shaanxi Province, born in June 1953. Joined the CPC in January 1974 and began working in January 1969. Graduated from the School of Humanities and Social Sciences of Tsinghua University, majoring in Marxist theory and ideological education. With an on-the-job postgraduate education. LLD.

Member of the Standing Committee of the Political Bureau...

"In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reform. In an effort to awaken a dormant economic giant, it encouraged the formation of rural enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. By nearly all accounts, the strategy has worked spectacularly."

"After an extended period of calm, leaders in Tokyo and Beijing are again allowing their relations to be dictated by domestic politics.

Nationalism once again threatens to undermine the relative calm in the China-Japan relationship that has prevailed since the 2010 Senkaku crisis."

"This morning I sat down to create some graphs showing GDP for the U.S. and China."

"In November 2011, President Obama stood before the Australian Parliament and issued a veiled challenge to China's ambitions in Asia: 'As a Pacific nation, the United States will play a larger and long-term role in shaping this region and its future.'"

"Details of a highly organized, sustained campaign of computerized attacks against businesses and governments across 14 countries were disclosed yesterday by the security company McAfee.

The attacks stretch back almost five years, and ranged in duration from one month to 28 months. They affected 32 types of organizations, including government agencies and defense, construction,...

This article highlights a White House visit between President Barack Obama and China's future president Xi Jinping. It touches on the changing attitude toward China in light of their economic rise.

"He would like to bet that China's dollar GDP (calculated at market exchange rates) will NOT surpass America's in 2018."

"Consumers in the U.S. might have heard of ZTE because of a recent U.S. congressional report that called the Chinese company a national security threat."

Chart or Graph

By official accounts, the composition of China's defense expenditure in 1997 was as follows....

"Major credit cards, gaming platforms, governments, banks and news organizations have all been the victims of cyber attacks."

"China's concerted nuclear expansion began with the National Development and Reform Commission's (NDRC's) Tenth Economic Plan for the years 2001-2005."

China’s sovereign wealth is sure to grow. Figure 2 shows that at the end of 2006, China owned foreign assets worth $1.63 trillion, with most of those in the form of foreign exchange reserves.

"The graphic depicts China official defense budget since 1994, and associated Defense Intelligence Agency estimates of actual defense expenditure. All figures in 2006 US Dollars."

A slowdown in industry [in China], which produces nearly three-fifths of GDP, was the main cause of last year’s slower GDP growth on the output side.

GhostNet had a frightening range that spread all over the globe. Though the United States was not heavily infiltrated by the worm, there were a handful of companies affected.

"Some companies completely refuse to produce their products in or transfer their intellectual properties to countries they believe pose a threat."

"Amnesty's 2010 Death Penalty Report named China as the top executor with thousands of executions."

An explanation of China's currency manipulation. China is paid for goods in U.S. dollars, with which China eventually buys U.S. debt, which is ultimately used to buy more Chinese goods.

This map gives us a picture of cyber-attacks by country.

"Certain countries are emerging as clear sources of threats to sensitive data, in particular to intellectual property."

The military branch in charge of China’s nuclear arsenal has acknowledged building a network of tunnels more than 3,000 miles long. For the past three years, a team of Georgetown University students has studied those tunnels, led by their professor, a former senior Pentagon strategist.

"When asked which country represents the greatest danger to the U.S., more Americans volunteer Iran (28%) than name any other country, though nearly as many (22%) name China."

Here's a full list of all GhostNet infections around the world.

This chart compares the changes in GDP for the U.S., China and Japan over the last three decades. While America stands well above the other two, China has already been able to eclipse Japan.

With its wealth spread among roughly 1.4 billion people, per capita income in China remains low at around $4,200 — representing an immense potential for the country to extend development to its poorer regions.

"Here’s an updated version of our Cyber Attacks graphic showing a world map and chart illustrating targeted cyber attacks on more than 70 companies, government bodies and organizations...."

"The following graphic lists the ten most/least corrupt countries based on Transparency International’s Corruption Perceptions Index for 2011. The Corruption Perception Index assigns countries and territories with scores between 0 (highly corrupt) and 10 (very clean)."

"There are all kinds of fascinating figures in there. But the most telling is per capita GDP."

"Respondents estimated that intellectual property worth approximately $17 million per firm is stored, accessed and managed overseas."

"The recent tensions over Iran’s nuclear program and disputes between the U.S. and Iran in the Persian Gulf have garnered a good deal of public attention."

In the recent past, China has defended its investment in US Treasury bonds. Meanwhile, there is concern that its position as the biggest investor in US debt may become political as well as economic.

"China currently is capable of targeting its nuclear forces throughout the region and most of the world, including the continental United States."

Military expenditure data provide an easily identifiable measure of the scale of resources absorbed by military activities. Military expenditure is an input measure.

This chart compares the military size of key countries in the Pacific.

This index, based on indicators from electricity generation to passenger traffic, is more timely than the official GDP figure. It is also more volatile, perhaps because China’s official data tend to smooth things out.

"Details of a highly organized, sustained campaign of computerized attacks against businesses and governments across 14 countries were disclosed...by the security company McAfee."

"Operation Shady RAT shares many similarities with the Operation Aurora and Night Dragon large-scale compromises also uncovered by researchers at the security firm, most notably in that Chinese hackers are again the prime suspects."

China’s size makes it a major supplier of a great many goods, but trade with the U.S. is nonetheless concentrated.

"[P]ublicly available information and occasional leaks make it possible to make best estimates about the size and composition of the national nuclear weapon stockpiles...."

"This map depicts notional coverage based on the range of the Russian-designed S-300PMU2 system equipped with the SA-20 SAM."

"A vast electronic spying operation has infiltrated computers and has stolen documents from hundreds of government and private offices around the world, including those of the Dalai Lama, Canadian researchers have concluded."

"Back in January, we featured a post where we looked at who are the largest holders of the U.S. national debt. Since that time, the U.S. Treasury has revised their data, specifically to identify who the real foreign owners of the U.S. national debt are."

As of 2009, the U.S. and Russia had roughly the same number of military personnel, with about 1.5 million each. Both are sizably outnumbered by China.

The slump in exports caused by the global recession bottomed during the first half of 2009 (Figure 3.9.6), and export growth was back in positive territory by December.

The top [chart] … shows that the Chinese emit about five times as much carbon dioxide per unit output as does the U.S.

In the last 37 years, manufacturing output in real dollars has more than doubled, while manufacturing employment has dropped by more than 26% ....

Using slightly different data than the AP article, the chart above shows U.S. Manufacturing Output (Gross Value) from The Federal Reserve, and U.S. Manufacturing Payroll Employment from the BLS (via Economagic), monthly from 1972-2009.

"Analysis of projections made by the U.S. intelligence community during the past decade for the growth in Chinese ICBM warheads shows that they have so far been too much too soon (see figure ... [above])."

Trading inequality. United States imports from China dwarf its exports... The trade deficit with China was a record $268 billion in 2008.

"The ability to visit a foreign country without the cost and hassle of obtaining a visa is a welcome bonus for any traveller."

Tonnes of uranium production by country from 2001-2011. The data for this chart is taken from the World Nuclear Association.

Analysis Report White Paper

"This Report sets forth the Commission’s analysis of the U.S.-China relationship in the topical areas designated by the Commission’s Congressional mandate; these are the areas the Commission is to consider, and about which it is to make recommendations to the Congress."

Growing numbers of human rights activists were imprisoned, put under house arrest or surveillance, or harassed.

"The United States has done much over the last 30 years to encourage and facilitate China’s national development and its integration into the international system. However, much uncertainty surrounds China’s future course, particularly regarding how its expanding military power might be used."

"Shanghai officials have since denied any policy shift, saying this caveat is nothing new, but the contradictory reports are another manifestation of ongoing rumors that Beijing is rethinking the controversial one-child policy that has for the past three decades helped spur economic growth — but exacted a heavy social cost along the way."

[T]his article argues that U.S. China policy ... began more than a half century before the Open Door notes and was in fact reflected in the treaty of Wangxia.

The annual Asian Development Outlook provides a comprehensive analysis of economic performance for the past year and offers forecasts for the next 2 years for the 45 Asian economies that make up developing Asia.

Aggressive fiscal and monetary stimulus in the People’s Republic of China (PRC) in 2009 offset much of the impact of the global recession.

"Until now, China's trains had always been a symbol of backwardness."

The Boxers, or 'The Righteous and Harmonious Fists,' were a religious society that had originally rebelled against the imperial government in Shantung in 1898.

"USTR's Office of China Affairs is responsible for managing the formulation and implementation of U.S. trade policy for China, Hong Kong, Macao, Taiwan and Mongolia, with the goal of increasing access for U.S. products and services in these markets and ensuring that the World Trade Organization (WTO) and other commitments are enforced."

China possesses nuclear weapons, a range of ballistic missile capabilities, and the ability to develop chemical and biological weapons. A key uncertainty is how current military modernization efforts will ultimately reshape China's strategic nuclear capabilities.

This thesis examines the connections between the Johnson administration’s concerns about China and the escalation of the Vietnam War in early 1965.

The relationship between China, ... is significant not only for the two peoples but also for the future of the whole world.

The current debates taking place in Washington over the impact of trade on jobs should make every economist cringe.

This article explains Chinese military thought that supports their cyberattack activities.

Chinese strategies rely on electrons in unanticipated ways to fulfill stratagems such as 'kill with a borrowed sword' or 'exhaust the enemy at the gate and attack him at your ease.'

China now stands at a historical moment, and its future and destiny have never been more closely connected with those of the international community.

"The tensions are a particular worry for China, the biggest buyer of Iranian oil, followed by India and Japan. Only Saudi Arabia and Angola sell more crude than Iran to China."

"A series of high-profile events in 2010 and 2011 highlighted the increasing and multifaceted threat of cyberattacks."

Contrary to the predictions of its supporters, China's entry into the World Trade Organization (WTO) has failed to reduce its trade surplus with the United States or increase overall U.S. employment.

"There is real risk to both the bilateral relationship and to China’s relations with the rest of the world. The issue is not war, but cyber espionage. Cyber espionage exacerbates tensions and the situation will get worse until this changes."

"On April 8, a front page article was published in the Wall Street Journal on the dangers posed by cyberspies to the U.S. electrical grid. According to senior intelligence officers who spoke with the Journal, 'Cyberspies have penetrated the U.S. electrical grid and left behind software programs that could be used to disrupt the system.'"

"The American military faces a growing threat of potentially fatal equipment failure—and even foreign espionage—because of counterfeit computer components used in warplanes, ships, and communication networks."

"The rise of China poses grave challenges to U.S. security. Beijing implements a mercantilist trade policy and artificially sets a low value on its currency to promote exports, thus creating a large U.S. trade deficit with China year after year."

"Hackers have attacked America’s defense establishment, as well as companies from Google to Morgan Stanley to security giant RSA, and fingers point to China as the culprit. The author gets an exclusive look at the raging cyber-war—Operation Aurora! Operation Shady rat!—and learns why Washington has been slow to fight back."

Americans buy a huge quantity of goods— ranging from audio-video equipment to clothing—made, or at least assembled, in China.

"This pattern of protest and repression—with an emphasis on the latter—was echoed elsewhere in the world as news of the Arab uprisings spread beyond the Middle East and North Africa."

This paper explores the view that there are situations in which people in business must confront the possibility that they must compromise some of their important principles or values in order to protect other ones.

"The present essay is an effort to clear away some of the underbrush surrounding the problem of the effects of imperialism in China, in the hope of helping to make discussion of this important issue as sophisticated and empirical as the present state of research allows."

"The United States is in Asia to stay. The graphics that follow help to demonstrate why. A quick glance is enough to demonstrate the dynamism of the region. Asia is home to more than half the world’s population. Freedom and tyranny live side by side across the region, as do economic opportunity and poverty. East and South Asia have some of the best places in the world to do business, but they...

With China hosting its first-ever Olympics, the country has seen a surge in national pride. But Chinese are angry at what they see as the West trying to spoil their party.

"- Mainland China has 14 nuclear power reactors in operation, more than 25 under construction, and more about to start construction soon."

How the United States deals with China is one of the greatest foreign policy challenges Americans face in the 21st century.

"On January 14, 2010 McAfee Labs identified a zero-day vulnerability in Microsoft Internet Explorer that was used as an entry point for Operation Aurora to exploit Google and at least 20 other companies. Microsoft has since issued a security bulletin and patch."

Robert Kaplan, correspondent for The Atlantic and author of Monsoon: The Indian Ocean and the Future of American Power, is interviewed by Foreign Affairs on China and how America's relations with it might look in the near future.

"...I have often been asked by our worldwide customers if they should worry about such sophisticated penetrations themselves or if that is a concern only for government agencies, defense contractors, and perhaps Google . My answer in almost all cases has been unequivocal: absolutely."

"The South China Sea dispute between China and some of its South East Asian neighbours – Vietnam, the Philippines, Malaysia and Brunei – has reached an impasse."

"This report, intended as a background overview, briefly summarizes U.S. political history with Taiwan and discusses the complications it has for current U.S. policy and for congressional actions."

How did the three powers in the Asia-Pacific region—the United States, China, and Japan—adjust their relations in the uncertain environment after Tiananmen (June 4, 1989) and the end of the Cold War?

Space warfare will be an integrated part of battle planning by the Chinese People's Liberation Army (PLA) in any future conflict.

China’s substantial holdings of U.S. government debt and the creation of a sovereign wealth fund (SWF) are causing concern that U.S. economic and national security may be at risk.

This article addresses three aspects of the civilian and military use of China’s Internet.

As a fight against Communism, the Korean War caused friction between the United States and Communist China. This military history article describes the engagement between these two countries in the early 1950s.

Whether or not China's experience provides useful lessons depends on whether the nature and cause of the problems that China and other transition economies attempt to solve are similar.

"By outsourcing some aspects of operations, U.S. businesses and multinational corporations have been able to increase the amount of value built into products compared to the same dollars expended domestically and have further been able to diversify market holdings in Asia after reaching saturation points in U.S. and European markets."

"Computer network exploitation represents the leading edge of signals intelligence in the information age. The proliferation of computer systems throughout governments, businesses, and civic organizations represents a boon for would-be cyber spies."

The rise of democracy in South Korea and Taiwan attests to the power of the market in generating political liberalization.

"As we face one of the worst recessions in recent memory, protecting a company’s critical information assets like intellectual property and sensitive data has never been more important, yet challenging. A single breach or loss can cause irreparable financial damage to a company’s reputation, its share price and customer confidence."

Video/Podcast/Media

China presents a complex puzzle to the United States. It is simultaneously a crucial trading partner, a major holder of U.S. debt, an independent diplomatic player, and a strategic competitor.

Daniel J. Ikenson discusses the effect changes in the value of the Chinese currency has on the American economy.

"Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about Chinese exchange rate policy and the claim that China keeps the value of its currency artificially low...

In March, Secretary of State Hillary Clinton said the U.S. is on the losing side of a global information war, pointing out the successes of state funded international news networks like Al Jazeera.

Stefan Halper talks about his book "The Beijing Consensus” and about liberty and reforms in China.

Daniel Griswold talks about the nuanced nature of the U.S.’s trade with China.

"Charlie Rose and Erica Hill speak with Steve Kroft about a cyber attack that crippled the Iranian nuclear program for a time."

This video features the events of AEI's annual dinner and its guest speaker, Martin Feldstein.

"In this address, Bruce examined the future of cyber war and cyber security. Mr. Schneier explored the current debate on the threat of cyber war, asking whether or not the threat had been over-stated. He then explored the range of attacks that have taken place, including the Latvian DOS attack and the Stuxnet worm. The address concluded with an exploration of the future of international...

Sen. Wyden (OR-R) and the Senate Intelligence Committee, ask an intelligence panel about Iran's nuclear threat and U.S. terrorists threats, particularly with regard to the theft of 'intellectual property' and 'economic secrets.' Bottom line: US. must expand intelligence and military agency policies to prevent 'corporate espionage.'

"It isn't easy, running China, with its 1.3 billion people and 56 officially recognized ethnic nationalities. It's a vast mix of languages, living standards, beliefs and customs. Run it successfully, and you have a prosperous, innovative, powerful empire to rival any the world has seen. Make mistakes, and the chaos will be vast and terrible.

China is run by the Communist Party, which...

"China's women have always been under pressure: from men, from family, from work. Now more and more are under new pressure -- from themselves -- to take control of their lives; to get an education; to have a career; to marry for love. It's a slow, difficult process, and it is changing China.

Mass migration from the countryside to the cities is increasing prosperity, but fracturing...

"China is trying to feed 20 percent of the world's population on 7 percent of the world's arable land. A third of the world uses water from China's rivers. But rapid industrialization and climate change have led to bad air, polluted rivers and drought. Environmental activists, Party officials, academics and scientists are in a daily struggle over the damage to nature in China.

...

"How free are the Chinese people? How free to worship as they please? To learn the truth from the media? To hear the truth from the Communist Party and the government? How can people with a grievance negotiate with the state?

Tibetan Buddhism has long been feared as a rallying point and cover for Tibetan independence. Worship is permitted on the Party's strict terms -- neither...

James Fallows interviews Damien Ma (an official who oversees the investment of United States Government bonds).

In late 2011, the Asian Arms Control Project at Georgetown University released a report on the nature of China's underground tunnels. Declaring these tunnels to be a "key component of ... [China's] burgeoning nuclear deterrence infrastructure," this video uses a variety of Chinese video footage to explain the historical development of the tunnels and China's missile program.

“When Chairman Mao died in 1976, he left China in chaos and poverty. He was succeeded by Deng Xiaoping, who overturned Maoism and taught the Chinese to love capitalism, creating special investment zones for the West. But Deng's crash course in capitalism went wrong when inflation grew and workers lost jobs.

By 1989, China faced disaster. Now, 20 years after the tragic events in...

A panel of experts discuss the state of cyber-security in the United States and certain measures that may be taken to improve the system. At time 1:18:00 the discussion becomes especially relevant.

"The U.S. government is about to declare a new war, but this time the enemy is a virtual one. A string of attacks on government websites by hackers has driven American policy-makers into a state of high-alert over a so-called terrorist threat. But some doubt the danger even exists, as RT's Lucy Kafanov reports."

President Ronald Reagan arrived in China on April 26, 1984, to start a six-day visit - the first by an American president since President Nixon in 1972.

"Professor Howard Schmidt, ISF President and one time security adviser to the White House discusses how and why corporate espionage is taking place."

"The author of 'Monsoon' explains why an attack won't be necessary, and why China is just like the U.S. in the late 19th century."

What can the Stuxnet worm accomplish? Who can use it? Does it threaten Americans?

China now has one of the largest rural-urban income gaps in the world, with the vast majority of its 120 million extreme poor living in the countryside.

Looking at all aspects of culture, science, and economics the great divergence between China and Europe was further back than was traditionally thought.

Cato Institute Vice President for Defense and Foreign Policy Studies Ted Galen Carpenter evaluated the U.S./China relationship during Policy Day held May 14, 2010.

Primary Document

The question of how the United States should respond to China’s military modernization effort, including its naval modernization effort, has emerged as a key issue in U.S. defense planning.

The Senate and House of Representatives of the United States of America in Congress approved an act banned transportation of 'coolies' in ships that were either owned or not owned by citizens of the United States of America.

The Senate and House Representations of the United States of America in Congress approved a law stating that any immigration of Chinese, Japanese, or any Asian country, to the United States must be free and voluntary.

The Scott Act extended Chinese exclusion laws indefinitely.

The 1917 Immigration Act, also known as the Asiatic Barred Zone Act, was a law passed by Congress that restricted the immigration of 'undesirables' from other countries...

This act repealed the Chinese Exclusion Act of 1882, established quotas for Chinese immigration, and allowed Chinese nationals in the U.S. to become naturalized citizens.

This Act amended previous Acts controlling Chinese immigration, in particular the Magnuson Act passed on December 17, 1943...

The following report covers the areas of: proliferation practices, economic transfers, energy, United States capital markets, regional economic and security impacts ...

"REFORM--DUBBED CHINA'S 'SECOND REVOLUTION'--was one of the most common terms in China's political vocabulary in the 1980s. Reform of the Chinese Communist Party and its political activities, reform of government organization, reform of the economy, military reforms, cultural and artistic reforms, indeed, China's post-Mao Zedong leaders called for reform of every part of Chinese society. The...

The parties shall cooperate in the use of nuclear energy for peaceful purposes in accordance with the provisions of this agreement.

This hearing transcript provides an extensive look into China's "One-Child Policy."

This address was delivered to Congress during a time when the U.S. was engaged in the Korean War.

This piece provides brief descriptions, compiled by the U.S. Department of State, of China’s political, economic, and social institutions.

The Boxer Rebellion was waged in China at the turn of the twentieth century due to the increased influence of the United States and other nations in Chinese territory and affairs.

As we announced yesterday, the Secretary leaves tomorrow for a very important trip to Tokyo, Shanghai, Beijing, and Seoul.

This treaty strengthened relations between the U.S. and China in the mid-1800s.

"The gathering and the distribution of news have long since ceased to be a local and individual occupation. They have become identified with great organizations have their representatives in all parts of the country and their publications in every important center. This service could only be performed by a mutual exchange of the most inclusive nature. How rapid and complete has been the growth...

This paper presents a comprehensive open source assessment of China’s capability to conduct computer network operations (CNO) both during peacetime and periods of conflict.

Following the implementation of the Chinese Exclusion Act, the Chinese gentleman represented in this case attempted to return to the United States under his original authorization.

"USTR's Office of China Affairs is responsible for managing the formulation and implementation of U.S. trade policy for China, Hong Kong, Macao, Taiwan and Mongolia, with the goal of increasing access for U.S. products and services in these markets and ensuring that the World Trade Organization (WTO) and other commitments are enforced.

It also includes working closely with USTR's Office...

"Although there is no authoritative statement of policy from the Chinese government on the Arctic, scientists and academics in China are increasingly showing interest in the region, and suggesting policies and actions for the nation. Given that the United States is an Arctic littoral state* with interests in the region, this memo seeks to provide an overview of Chinese environmental, energy,...

"This report provides an overview of U.S.-China trade ties and major issues."

Despite apparently consistent statements in four decades, the U.S. 'one China' policy concerning Taiwan remains somewhat ambiguous and subject to different interpretations.

The coming of Chinese laborers to the United States be, and the same is hereby, suspended; and during such suspension it shall not be lawful for any Chinese laborer to come.

"This report is prepared annually to provide Congress with official, unclassified, quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years for use in its policy oversight functions. All agreement and delivery data in this report for the United States are government-to-government Foreign Military...

President Nixon explains to a group of Congressional leaders, ... the importance of restoring communication with China as a way of mitigating suspicion and miscalculation, which could lead to war.

In terms of size, scope, and magnitude, trademark counterfeiting in China is considered by many to the most serious counterfeiting problem in world history.

"Cyberwarfare raises issues of growing national interest and concern. Cyberwarfare can be used to describe various aspects of defending and attacking information and computer networks in cyberspace, as well as denying an adversary's ability to do the same. Some major problems encountered with cyber attacks, in particular, are the difficulty in determining the origin and nature of the attack...

As of January 1, 1979, the United States of America recognizes the People's Republic of China as the sole legal government of China.

This statement reports on efforts to release "American airmen and other United Nations personnel detained in Red China."

"The final thing, a subject that I want to open up personally before we go to the questions, is merely the Korean question.

I wrote a letter to Mr. Rhee in which I earnestly tried to express what is my understanding and, I believe, the American understanding of how we got into that war, what we were trying to achieve, where we are now, and what we are trying to do. In no case have we...

This emigration treaty followed the infamous "Chinese Exclusion Act."

This executive order deals with "the appropriateness of unconditional most-favored-nation (MFN) trading status for the People’s Republic of China."

A Chinese Christian, Fei Ch’i-hao recounts the Boxer War from his perspective.

The issue of American/Chinese relations was one of the many topics addressed by President Harrison in this speech.

This note addresses Germany's trade relations with China and also expresses the desire of the U.S. to do the same.

This news conference contains President Bush's remarks on the events in Tiananmen Square.

This resolution gives a brief outline of the events between China and Tibet. The resolution then goes on to make several statements about the United States' position on the matter.

In this speech, President Harry Truman outlines the American war effort in Korea. Truman frames the conflict by describing the efforts in Korea as an attempt to prevent "world war III."

Mr. Chairman and distinguished Members of the Commission, it is my pleasure to have the opportunity to discuss China’s efforts in the realm of human rights, the rule of law and the environment and the prospects for U.S.-China cooperation on this critical issue.

"The House Permanent Select Committee on Intelligence (herein referred to as 'the Committee') initiated this investigation in November 2011 to inquire into the counterintelligence and security threat posed by Chinese telecommunications companies doing business in the United States."

United States senator J. William Fulbright of Arkansas supported the 1964 Gulf of Tonkin Resolution, which allowed President Lyndon Johnson to expand U.S. military involvement in the Vietnam War (1959-1975).

Following the growth of ties between China and the U.S. in 1978, the two countries established full diplomatic relations effective January 1, 1979.

President Richard Nixon of the United States of America visited the People's Republic of China at the invitation of Premier Chou Enlai of the People's Republic of China from February 21 to February 28, 1972.

In 1961, President John F. Kennedy met with China's Vice President, Mr. Chen. This statement describes the details of their discussion.

"Former Secretary of State Henry Kissinger discusses what it was like the first time he visited Beijing in 1971, the nation's economic rise, and whether U.S. worries about China are justified."

A list of Lenin’s writings selected by the Editors of the Lenin Internet Archive for their political influence and significance, historical value and reflection of Lenin’s beliefs.

This letter eventually set into motion the "Treaty of Wangxia." In it, President Tyler expressed his desire to establish a fair and honest trade system between the U.S. and China.

The 'Manifesto of the Communist Party' was written by Marx and Engels as the Communist League’s programme on the instruction of its Second Congress ..., which signified a victory for the followers of a new proletarian line during the discussion of the programme questions.

The document describes the monetary aid that the United States gave to China, while also extending praise and encouragement to the Chinese citizens who were sacrificially fighting the Japanese.

An unfortunate accident in 1927 between an American naval ship and a Chinese boat resulted in the death of a Chinese citizen. This document seeks to make amends for the incident in the form of a $500 payment.

This message announced a nuclear energy agreement between the U.S. and China.

China has made great progress in its pursuit of economic growth and development, which has allowed China to achieve higher living standards for the Chinese people and has increased China’s international profile.

China’s rapid rise as a regional political and economic power with global aspirations is an important element of today’s strategic environment – one that has significant implications for the region and the world.

"China’s rapid rise as a regional political and economic power with global aspirations is an important element of today’s strategic environment – one that has significant implications for the region and the world. The United States welcomes the rise of a peaceful and prosperous China, and it encourages China to participate as a responsible international stakeholder by taking on a greater share...

"People's Republic of China (PRC) leaders have outlined national strategic objectives in a series of 'white papers' on China's foreign policy, national defense, and arms control. However, such documents offer only limited insights on the motivations behind the objectives, or the specific strategies to achieve them. The linkages between the occasional strategic pronouncement and actual policy...

This treaty between America and China was ratified in order "to declare publicly and formally their sense of unity and their common determination to defend themselves against external armed attack.

A political report made by Chairman Mao Tse-tung to the Seventh National Congress of the Communist Party of China.

This statement represents House Speaker Nancy Pelosi's views on Chinese control of Tibet.

This trade agreement between America and China seeks "to enhance friendship between both peoples" and to "develop further economic and trade relations between both countries."

"The Philippine Government faces threats from several groups, some of which are on the US Government's Foreign Terrorist Organization list. Manila has waged a decades-long struggle against ethnic Moro insurgencies in the southern Philippines, which has led to a peace accord with the Moro National Liberation Front and on-again/off-again peace talks with the Moro Islamic Liberation Front. The decades-long Maoist-inspired New People's Army insurgency also operates through much of the country. The Philippines faces increased tension with China over disputed territorial claims in the South China Sea."

This testimony notes the details in regard to China's acceptance into the World Trade Organization in 2001. Freeman then goes on to describe how Chinese imports to countries such as the U.S. have increased since then.

"Good morning. Laura and I are pleased to welcome President Hu Jintao and his wife, Madame Liu, to the White House. (Applause.)

The United States and China are two nations divided by a vast ocean -- yet connected through a global economy that has created opportunity for both our peoples. The United States welcomes the emergence of a China that is peaceful and prosperous, and that...

According to this document, the leaders of each America and China consented to a more open trade agreement in which trade duties were lifted on some imports and exports.

Trade between the United States and China has expanded significantly even though China has maintained restrictions on market access for U.S. exports and investment.

'Quotations from Mao Tse Tung" is comprised of excerpts from the Chinese leader's speeches and writings from 1927 through 1964

In the Fall of 1964, "Communist China exploded a nuclear device on an isolated test site in Sinkiang." President Johnson condemned the incident, declaring that China's "nuclear pretensions are both expensive and cruel to its people.

Commenting on his discussion with the president of China, President Clinton expressed a desire to be friendly with the nation, but only if they agreed to address some serious issues such as human rights and other common concerns.

As the title suggests, this document contains President Nixon's comments after his trip to China.

It is a great honor to welcome you to the first meeting of the Strategic Economic Dialogue between the United States and China.

In the Spring of 2001, an American aircraft landed in China and was unwillingly detained for 11 days. ... This document contains President Bush's remarks after the crew had been released by the Chinese government.

"I would like to thank Cambodia for hosting this meeting of the ASEAN Regional Forum. This institution has matured in recent years, emerging as a cornerstone of an increasingly effective regional architecture for the Asia-Pacific. Today is an opportunity for all of us to gather in one place and grapple with the most important challenges to our common security and prosperity. I would like to briefly touch on three of these issues and then say a few words about the future of this body."

This document announces President Nixon's intentions to make his now famous trip to China.

In this address, President Reagan reflects on the diplomatic progress that was made between America and China because of his trip.

Travelogue of Chinese pictures from Robert Henry Chandless.

This piece provides a brief, historical overview of the United States' Open Door Policy in the early 1900s.

This speech describes the opening and expansion of Chinese sea ports due to a treaty between England and China. President John Tyler hoped to capitalize on these developments to achieve more trade between China and America.

Excerpts from a speech given by Chairman Mao Tse-tung at China’s Supreme State Conference in 1958.

This site provides an extensive archive of the speeches delivered at the Democratic National Convention of 2008, sorted by speaker or topic.

In an attempt to formulate better relations between America and China, President Nixon made the suggestions in this document. One of the initiatives is the authorization of "direct imports of designated items from China."

In the midst of the Korean conflict, President Truman issued the following statement on conflict between the Chinese mainland and the island of Formosa.

This piece describes U.S. policy with China following the conclusion of WWII.

This speech marked the culmination of a trade agreement with China.

"The dominant political issues continue to be the relationship between Taiwan and China - specifically the question of Taiwan's eventual status - as well as domestic political and economic reform."

It is the policy of the United States to preserve and promote extensive, close, and friendly commercial, cultural, and other relations between the people of the United States and the people on Taiwan.

"In 1979, official U.S. relations with Taiwan (the Republic of China) became a casualty of the American decision to recognize the government of the People's Republic of China (PRC) as China's sole legitimate government. Since then, U.S. unofficial relations with Taiwan have been built on the framework of the Taiwan Relations Act (P.L. 96-8) and shaped by three U.S.-China communiqués. Under...

A program of cultural exchange between the U.S. and China for the period 1984 and 1985.

The appeal involves a consideration of the validity of the Act of Congress of October 1, 1888, prohibiting Chinese laborers from entering the United States who had departed before its passage, having a certificate issued under the act of 1882.

As a result of our wartime alliance with China, this act was passed by the U.S. Congress to repeal the ... Chinese Exclusion Act of 1882 and subsequent acts, allowing for the first time in 60 years the legal immigration of Chinese into the U.S.

The history of Chinese immigration in the United States is a somewhat peculiar one.

The First 'Open Door Note' by John Hay, U.S. Secretary of State to Andrew D. White

An act to prohibit the coming of Chinese persons into the United States.

It is the purpose of the following chapters to trace the part of the United States in the first division of the second period, i. e., the years before 1844.

One of the most remarkable achievements of the foreign policy of the United States was not to appear until seventy-six years after the promulgation of the famous Monroe Doctrine. It was the Open-Door Policy.

This state of the union address was given shortly before the start of the Civil War. One of the many things President Buchanan discussed was a recent treaty with China.

Selected dispatches from U.S. military and diplomatic officials related to the capture of the city of Tientsin during the Boxer War.

There shall be, as there always has been, peace and friendship between the United States of America and the Ta-Tsing Empire, and between their people respectively.

The Wangxia treaty sought to establish "a perfect, permanent, and universal peace and a sincere and cordial amity between the United States of America on the one part, and the Ta-Tsing Empire on the other part.

"The U.S. officials announced meaningful progress on key elements of the U.S.-China trade relationship, but also underscored that much more work remains to be done to open China's market to U.S. exports and investment."

"In 1979, the United States changed its diplomatic recognition from Taipei to Beijing. In the U.S.-P.R.C. Joint Communique that announced the change, the United States recognized the Government of the People's Republic of China as the sole legal government of China and acknowledged the Chinese position that there is but one China and Taiwan is part of China. The Joint Communique also stated that within this context the people of the United States will maintain cultural, commercial, and other unofficial relations with the people on Taiwan."

This CRS Report, updated as warranted, discusses the agreement on civilian nuclear cooperation with the People’s Republic of China (PRC) by focusing on congressional roles in crafting and carrying out the agreement.

"For decades, Taiwan has been of significant security, economic, and political interest to the United States."

We are here today to share some good news with each other. With the four agreements that we are about to sign, the normalization of relations between the United States of America and the People's Republic of China is at last complete.

This letter announces "The Agreement on Trade Relations" and gives the President's thoughts on the benefits of the agreement.

This testimony relates the struggles of an American company trying to work with its subsidiaries in China.

In this testimony, Wu encourages the U.S. to "push China to make a genuine improvement in its human rights."

One of the most important actions you and your colleagues can take to help us protect our intellectual property rights in China is to continue to call attention to the Chinese authorities that you consider the theft of US intellectual property a high priority.

Books

FAQs

Could cyber-attacks be used to cause physical damage? What other vulnerabilities might be exploited in a cyber-attack? Could an attack disrupt infrastructure such as power grids? All these questions and more are answered in the FAQ below.

Is the threat of an EMP a legitimate concern? What kind of infrastructural damage is an EMP capable of? How long would the consequences of such an attack last? All these questions and more will be answered in this FAQ.

One of the most serious threats to national security, individual privacy, and protection of one's assets comes from Intellectual Property (I.P.) espionage. What kind of information may be stolen? Who is or has the capability of engaging in effective I.P. espionage? Has this already happened? What can the United States do? All these questions and more are answered in this FAQ.

Missile defense. It's been talked about for decades, some of us even grew up watching Patriot missiles shoot down Iraqi Scud missiles in the first Gulf War. But where do things stand today? Is it still needed? Should I care? Those questions and more are answered in the FAQ below.

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