China’s strengthening cyber capabilities will complicate U.S. efforts to defend itself against industrial espionage and possible military confrontations in places such as Taiwan, according to a new congressional report released on Thursday.
The report was written by defense contractor Northrop Grumman for the U.S.-China Economic and Security Review Commission, which was set up by Congress in 2000.
It paints a grim picture for the U.S., whose defense and high-tech companies including Google have been successfully breached by suspected China-based hackers.
The U.S. faces risks from attackers who seek to infiltrate the supply chains forelectronics such as chips or integrated circuits, which could be modified to intentionally fail, the report said.
“The supply chain for microelectronics and telecommunications-relatedhardware in particular is extremely diffuse, complex, and globally dispersed, making it difficult for U.S. firms to verify the trust and authenticity of theelectronic equipment they purchase,” it said.