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Red-DragonRising.com©


中国人民共和国信息戰

LTCOL (RET) William Hagestad II MSc Security Technologies

MSc Management of Technology www.red-dragonrising.com

[email protected]

中華人民共和國網絡代碼衝突...

Who is the People’s Republic of China & Why Should the Gulf

Cooperation Council (GCC) Care?


The Middle Kingdom….



“21st Century Chinese Cyber Warfare”

“二十一世紀中國

網絡戰”

ISBN: 9781849283342 Red-DragonRising.com©

中華人民共和國

Red-DragonRising.com© Red-DragonRising.com©


Is China Really the Enemy?



Cyber Adversary Taxonomy


Cyber Threat Motive Targets of Opportunity Methodologies Capabilities

Nation States ~ Peace Time

Economic, Military, National Secrets, Political

Commercial Enterprises, Intelligence, National Defense, Governments, National Infrastructure

Military & Intel specific cyber doctrine, hacktivists

Asymmetric use of the cyber domain short of kinetic

Nation States ~ War Time

Economic, Military, Political

Commercial Enterprises, Intelligence, National Defense, Governments, National Infrastructure

Military & Intel specific cyber doctrine, hacktivists

Asymmetric use of the cyber domain including kinetic

Cyber Terrorists & Insurgents

Political Infrastructure, Extortion and Political Processes

Combination of advanced persistent threats (APT)

Developing – will be a concern in 2012

Cyber Criminals – Grey & Black Markets

Financial Intellectual Property Theft, Fraud, Theft, Scams, Hijacked Network & Computer Resources, Cyber Crime for Hire

Exploits, Malware Botnets, Worms & Trojans

Cell-based structure as an APT

Criminal Organizations – RBS

Financial Use of above with distinct planning

Highly professional, dangerous

Rogue Organizations – Anonymous, LulzSec

Financial Military, National Secrets, Political

Intellectual Property Theft, Direct & Indirect pressure on OGA Resources

Organic hacking capabilities unsurpassed

Organized yet de-centralized


The Middle Kingdom


GCC 'prime target' for cyber crime - experts - ArabianBusiness.com #紅龍

GCC, China agree on strategic relations, dialogue - Emirates 24/7 #紅龍

China-GCC strategic dialogue resumes | Arab News #紅龍

China, Gulf states outline 2014-2017 cooperation#紅龍 China decries US spending bill as harming its interests |

GulfNews #紅龍

http://www.arabnews.com/news/511401 http://www.emirates247.com/gcc-china-agree-on-strategic-relations-dialogue-2014-01-17-1.535078 http://www.fmprc.gov.cn/eng/zxxx/t1094376.shtml http://english.peopledaily.com.cn/90883/8516249.html http://gulfnews.com/business/technology/china-decries-us-spending-bill-as-harming-its-interests-1.1279321

http://english.peopledaily.com.cn/90883/8516249.html

http://english.peopledaily.com.cn/90883/8516249.html


中國人民解放軍 1949 Information Warfare

(IW)


毛泽东 Mao Tse-Tung


Chinese View…

16 AUGUST 2011


Chinese Perspective…. 16 AUGUST 2011 – People’s Tribune Magazine - (人民论坛杂志) publishes

several articles… 4 are very problematic for the United States….

– “A Sovereign Country Must Have Strong Defense” by Min Dahong, director of the Network & Digital Media Research Office @ China Academy of Social Sciences;

– “America’s ‘Pandora’s Box’ Cyber Strategy Confuses the World” by Shen Yi - Fudan University’s Department of International Politics;

– “Cyber Power ‘Shuffles the Cards’: How China Can Overtake the Competition” by Tang Lan, Institute of Information and Social Development Studies at the China Institute of Contemporary International Relations; and

– “How to Construct China’s Cyber Defenses” by Liu Zengliang, from the PLA National Defense University

Red-DragonRising.com© http://www.rmlt.com.cn/qikan/2011-08-16/

http://www.rmlt.com.cn/qikan/2011-08-16/28359.html





Red-DragonRising.com© http://www.chinasmack.com/2010/more/cannons-english-teacher-seduction-june-9th-jihad.html

http://www.chinasmack.com/2010/more/cannons-english-teacher-seduction-june-9th-jihad.html

http://www.chinasmack.com/2010/more/cannons-english-teacher-seduction-june-9th-jihad.html


誰是中國?


第一…中國共產黨 (CPC) 第二…人民解放军 (PLA) 第三… 中國國有企業 (SOE) 第四個…中國黑客 (Hacktivists)

中國黑客…. 4 Groups…Official & Unofficial….


► Codified cyber warfare in 2010… • In response to US Cyber Command 6 months earlier…

► Official Edict: “protect national infrastructure from external cyber threats” – President Hu Jin tao

► President Hu’s successor Xi Jin ping …. Motivations:

• Maintain & Retain Chinese Dream… • Ensure China’s Sovereignty… • Control Freedom of Search… • Ensure stable transition of Communist Regime…

中國共產黨 - CPC


► 500 BC Sun-Tzu’s Art of War – basis ► Sun Ping’s Military Methods ► 1995 - Major General Wang Pufeng – Founding father of Chinese Information Warfare (IW) ► 1999 - War Without Limits – PLAAF Senior Colonel’s

Qiao Liang & Wang Xiangsui ► 2002 - PLA's IW strategy spearheaded by Major

General Dai Qingmin -

人民解放军- PLA

Integrated Network-Electronic Warfare (INEW)


General Staff Directorate’s (GSD) Cyber Warfare ‘Princelings’…

General Zhang Qinsheng 章沁生 General Chen Bingde 陈炳德 General Ma Xiaotian 马晓天 Vice Admiral Sun Jianguo 孙建国 Major General Hou Shu sen 侯树森

Official Statement of Chinese IW

20 JUL 2010 – ‘ordered by President Hu Jintao to handle cyber threats as China enters the information age, & strengthen

the nation's cyber-infrastructure’

漢族…Han Chinese Communist…

Technologists… PLA Leaders…. &

中國人


目前中國網絡戰的戰術 China’s “Goal is to achieve a strategic

objective…over adversaries…” “You have to meet my political conditions

or your government will be toppled, or you promise to meet some of my political

conditions.”

• Major General Hu Xiaofeng, Deputy Director for the National Defense University Department of Information Warfare and Training Command

• Professor Meng Xiangqing, National Defense University Institute for Strategic Studies

黑暗訪問者, 2009; [Online] Available at: http://www.thedarkvisitor.com/category/uncategorized/

http://www.thedarkvisitor.com/category/uncategorized/


Originally supported by CPC & PLA • Now uncontrollable….Golden Shield Project? • Comment Group… • Elderwood Gang… • Use of known Chinese malware for commercial purposes

now… Reinforce PRC’s nationalism via the web

• Taiwan, the renegade Chinese Province • Punishing Japan for WWII war crimes, Daiyu Islands • Confronting Philippines, Oil near Huangyuan • Codera’s anti-Chinese web rhetoric

Capability to carry out Chinese State Policies without attribution….

黑客 - Hacktivists


"海洋石油 981"

CNOOC’s new deep-water drilling rig as China’s “mobile national territory” and a “strategic

instrument” for promoting the development of the country’s offshore oil industry…11 MAY 2012 Wall

Street Journal

HSY 981 able to drill to 3,000M of water…China

National Offshore Oil Corporation can extract Oil & Gas anywhere in the South China Sea


"海洋石油 981"

资料图：“海洋石油981”全景

“mobile national territory” and a “strategic instrument” for promoting the development of the country’s offshore oil industry

“China's first independent design, the construction of the sixth-generation deepwater semi-submersible drilling platform Offshore Oil 981 “ This indicates that the deep-sea strategy of China National Offshore Oil prelude of great strategic significance for the maintenance of China's energy security.”

中新社南海“981”深海钻井平台5月9日电(记者王丹鹰)中国首座自

主设计、建造的第六代深水半潜式钻井平台“海洋石油981”9日在南海正式开钻。这标志着中国海洋石油深海战略拉开序幕，对于维护中国能源安全具有重大战略意义

http://energy.people.com.cn/GB/17848393.html

2012年5月11日

http://energy.people.com.cn/GB/17848393.html


• China Telecom – owned by the CPC, operated by the PLA

• Huawei – owned by former PLA officer direct links to the PLA however NOT the CPC

• China Unicom – Hong Kong based now a Chinese SOE…100% lead back to military or government….

國有企業 – State Owned Enterprises

中华人民共和国工业和信息化部

• Commercial theme, profit oriented… • Research base, ties to Chinese Academy of Sciences (CAS)… • International interest & focus…developing countries… • No organic innovation capabilities… • Foreign cyber espionage capability via PLA (GSD) & MSS…

Common Themes…


Chinese Petro SOEs

China National Offshore Oil Corporation

China Natural Gas

China Oilfield Services Limited 中海油田服务股份有限公司

CITIC Resources Holdings Limited 中信資源控股有限公司

Shanghai Petrochemical 上海石油化工股份

Shenergy Company Limited 申能股份有限公司


PRC & Iraq….Oil China National Petroleum Company

or CNPC (CNPC) in Iraq “CNPC commenced oil negotiation with Iraq since 1997…

…contract on the development of Al-Ahdab Oilfield with the Iraq's Ministry of Oil in November 2008.


China’s overseas investments in the upstream oil and gas sector in 2009 have been dominated by CNPC’s deal, in partnership with BP, to develop the Rumaila field in Iraq. CNPC & BP agreed to raise production at Rumaila from 1 mbpd to 2.85 mbpd within 7 years at an estimated cost of $20 bn over the 20-year life of the project.

http://www.ogj.com/articles/2011/01/bp--cnpc-increase.html







Iran….Oil

中國


PRC & Iran….Oil CNPC signs deals developing northern & southern parts of the Azadegan field. Investment of $4.26 bn, boosts aggregate production greater than 400,000 bpd.


China’s Interests in the GCC

Entry Date Country Project Chinese SOE

2002 Oman Block 5 (36,500b/d) CNPC (Petrogas)

2004 Saudi Arabia Gas Exploration, Empty Quarter)

Sinopec (Saudi Aramco)

2009 Qatar Exploration License, Block BC

CNOOC (Total)

2012 Qatar Exploration License, Block 4 & B

PetroChina (GDF Suez)

2014 Saudi Arabia 400,000 b/d Yasref refinery & patchems

Sinopec (Saudi Aramco)

N/A UAE Invited to prequalify for ADCO concession

CNPC

GCC & China NOCs


• 2001 …. Insider plants data exfiltration trojan

• Corporate executives targeted….

• Leadership avoids ignores warnings of threat

• Telecommunications Intellectual Property data theft continues unabated…for TEN years

• Market valuation and position lost…

• 2011 … Nortel ceases to exist as a Canadian Company….

• Chinese State Owned Enterprises…Huawei ZTE suddenly take global leadership in telephony….

Nortel Case Study…


Short & Long Term Moves for GCC

Strategy/Move Who What/Why How When Cost

BS, CS, & IS - Define specific Intellectual Property Targets

GCC Corporate & Legal Leadership

What are most likely targets of economic espionage by China

Work with commercial industry to assist defining possible loss of business if they lost their intellectual property to China

Immediately, then quarterly

Nominal to High

BS, CS & IS – Educate employees about possibility of data exfiltration

Business & Corporate leadership – Chief Information Security Officers

Awareness of persistent threat of economic cyber war

Design educational awareness programs to address identifying, reporting and mitigating foreign information exfiltration threats

Immediately, then monthly Nominal

BS, CS & IS – Create a universal defense-in-depth policy

GCC CISO, Staff ICW security software & hardware manufacturers

Protect critical information infrastructure against Chinese Cyber Threats

Design & implement defense-in-depth standard that protects worldwide GCC Corporate info infrastructure

Immediately, then ongoing

Nominal to High

BS, CS & IS – Liaise & dialogue w/Chinese NOCs & SOEs; CNPC, etc

Business & Corporate leadership – Chief Information Security Officers

Define Corporate GCC trade secrets & critical IP – AirGap or $ELL!

Protect the information which defines GCC Worldwide…what, if lost, would compromise & keep your Board of Directors awake?

Immediately, then quarterly and semi-annually

Very High

Short & Long Term Focus on addressing high risks of the Chinese Cyber Threat

BS = Business Strategy CS = Corporate Strategy IS = Innovation Strategy GS = Government Strategy


結束狀態

1) Cyber-espionage is state sponsored; yet direct attribution is an illusion…. 2) 中華人民共和國 plans cyber-espionage – defensively & offensively; 3) Cultural, economic, historical & linguistic threads中國 cyber-espionage; 4) 中國, although advocating citizen hacking, no longer controls it; 5) Commercial enterprises worldwide are permeable to中國cyber hacking in all

form & methods; 6) 中國malware, RATs, Botnets are undiscoverable…. 7) Mandarin Chinese (complex and simple) are an exceptional form of

cryptography… 8) All Western InfoSec Technology are ineffective against中國 attacks; 9) Companies cannot defend adequately from the various alleged Chinese

information warfare threats of Next Generation Warfare; 10) Offensive Cyber Capabilities must be developed…..protect your IP & Network 11)中華人民共和國 cyber-espionage threat serious & only become much

worse…..


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