Category Archives: China aggression

President Trump and ZTE

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There has to be an explanation for President Trump’s interest in saving jobs at ZTE.

In Concession, Trump Will Help China's ZTE 'Get Back Into ... photo

Could it be part of a trade issue with China to ensure China continues pressure on North Korea? Could it be to keep American intellectual property protected in some obscure plot where China continues to steal intelligence to eventually control all 5G?

The 2019 NDAA includes a provision to prohibit ZTE and Huawei use in the United States.

Reuters: “I hope the administration does not move forward on this supposed deal I keep reading about,” Republican Senator Marco Rubio said. Bilateral talks between the world’s two biggest economies resume in Washington this week.

The Wall Street Journal has reported Beijing would back away from threats to slap tariffs on U.S. farm goods in exchange for easing the ban on selling components to ZTE.

“They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio said at a Foreign Relations Committee hearing on Asia policy.

Trump had taken to Twitter on Sunday with a pledge to help the company, which has suspended its main operations, because the penalties had cost too many jobs in China. It was a departure for a president who often touts “America First” policies.

The Commerce Department in April found ZTE had violated a 2017 settlement created after the company violated sanctions on Iran and North Korea, and banned U.S. companies from providing exports to ZTE for seven years.

U.S. companies are estimated to provide 25 percent to 30 percent of components used in ZTE’s equipment, which includes smartphones and gear to build telecommunications networks.

The suggestion outraged members of Congress who have been pressing for more restrictions on ZTE. Some U.S. lawmakers have alleged equipment made by ZTE and other Chinese companies could pose a cyber security threat.

“Who makes unilateral concessions on the eve of talks after you’ve spent all this time trying to say, correctly in my view, that the Chinese have ripped off our technology?” Senator Ron Wyden, the senior Democrat on the Senate Finance Committee, which oversees trade policy, told Reuters.

Wyden, who is also on the Intelligence Committee, was one of 32 Senate Democrats who signed a letter on Tuesday accusing Trump of putting China’s interests ahead of U.S. jobs and national security.

The company has denied wrongdoing.

Republican Representative Mac Thornberry, chairman of the House Armed Services Committee, said at a Bloomberg event on Tuesday he did not expect lawmakers would seek to remove a ban on ZTE technology from a must-pass annual defense policy bill making its way through Congress.

“I confess I don’t fully understand the administration’s take on this at this point,” Thornberry said. “It is not a question to me of economics, it is a question of security.”

Consider:

Axios: President Trump’s desire to help save ZTE could set the tone for the treatment of another Chinese telecom company that’s under investigation for sanctions violations, Axios’ Erica Pandey writes.

The backdrop:

  • ZTE has been found guilty of breaking U.S. law three times, including violating sanctions by selling equipment with American parts to Iran and North Korea.
  • The Pentagon has banned the sale of ZTE and Huawei phones at retail stores on military bases, citing concerns that the companies are using their devices to spy on military personnel.
  • ZTE and Huawei are both key players in China’s race to dominate 5G and the future of mobile communication. The Chinese Communist Party is painting U.S. moves against the Chinese phone makers as efforts to knock China out of the 5G race.

Between the lines: “Ross had a color wheel of approaches [on ZTE] ranging from a handslap to breaking them as a company,” says Chris Johnson, a former CIA China analyst who’s now at the Center for Strategic and International Studies.

  • The Chinese might have stomached a slap on the wrist, but by banning American companies from selling parts to ZTE, Ross served up a punishment harsh enough to halt operations. China in turn made ZTE a top trade priority and used its massive leverage to potentially sway the president.

Why it matters: China could use Trump’s apparent pivot on ZTE as a stepping stone to free Huawei. Or the ZTE case could be a lesson for the U.S. in negotiating with China.

How the ZTE deal could fare:

  • “The U.S. and China are closing in on a deal that would give China’s ZTE Corp. a reprieve from potentially crippling U.S. sanctions in exchange for Beijing removing tariffs on billions of dollars of U.S. agricultural products, said people in both countries briefed on the deal,” the Wall Street Journal’s Lingling Wei and Bob Davis report.
  • Steven Mnuchin is leading the U.S. in negotiating a deal that puts the brakes on actions against ZTE in exchange for China buying down its trade surplus, reports Axios’ Jonathan Swan.
  • China’s trade negotiator, Liu He, is in DC today. Axios contributor Bill Bishop hears that Liu will arrive “with an open checkbook to buy down the deficit but that progress on anything structural will be much harder.”

The bottom line: Taking the toughest possible approach to China might not be the smartest when the Asian power is stronger than ever and prepared to fight back.

 

$100,000 to Destroy the New US Embassy in Jerusalem

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Sheesh…the building has been there for years already. Further, there are several other countries that are moving their embassies as well.

About 800 guests attended the opening ceremony. The U.S. was represented by a formally designated “Presidential Delegation” led by Deputy Secretary of State, John. J. Sullivan, and including U.S. Ambassador to Israel, David Friedman, Treasury Secretary Steve Mnuchin, Presidential Advisor Ivanka Trump and her husband, Jared Kushner, and Jason Greenblatt, the White House’s lead negotiator. A bicameral Congressional delegation and other U.S. dignitaries were also present for the ceremony, which was also attended by top diplomats from 33 other nations.

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The Jerusalem Embassy Act of 1995 is a public law of the United States passed by the 104th Congress on October 23, 1995.

The Act recognized Jerusalem as the capital of the State of Israel and called for Jerusalem to remain an undivided city. Its purpose was to set aside funds for the relocation of the Embassy of the United States in Israel from Tel Aviv to Jerusalem, by May 31, 1999. For this purpose it withheld 50% of the funds appropriated to the State Department specifically for “Acquisition and Maintenance of Buildings Abroad” as allocated in fiscal year 1999 until the United States Embassy in Jerusalem had officially opened. Israel’s declared capital is Jerusalem, but this is not internationally recognized, pending final status talks in the Israeli–Palestinian conflict.

Despite passage, the law allowed the President to invoke a six-month waiver of the application of the law, and reissue the waiver every six months on “national security” grounds. The waiver was repeatedly invoked by Presidents Clinton, Bush, and Obama.

Iran continues to ignore history, facts and hard tangible evidence about Jerusalem. Furthermore we were told by John Kerry and Barack Obama were to be good citizens of the world after the completion of the Iranian nuclear deal….well three things at least have surfaced since the United States withdrew.

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  1. A hardline Iranian organization is reportedly offering a $100,000 reward to any person who bombs the newly opened U.S. embassy in Jerusalem, according to a translation of Farsi language reports.

    A group known as the Iranian Justice Seeker Student Movement is reported to have disseminated posters calling for an attack on the U.S. embassy in Jerusalem, which has been opposed by Palestinian and Iranian officials as an affront to the holy city.

    “The Student Justice Movement will support anybody who destroy the illegal American embassy in Jerusalem,” the poster states in Farsi, Arabic, and English, according to an independent translation of the propaganda poster provided to the Free Beacon.

    There will be a “$100,000 dollar prize for the person who destroys the illegal American embassy in Jerusalem,” the poster states.

    Iran poster

    The call for an attack on the new embassy is just the latest escalation by hostile Islamic states and leaders who have lashed out at the United States and President Donald Trump for making good on a campaign promise to relocate the embassy from Tel Aviv to Israel’s declared capital city of Jerusalem.

    News of the bomb threat was first reported by the University Student News Network, a regional Farsi-language site that aggregates relevant news briefs.

    “The Student Movement for Justice declared, ‘Whoever bombs the embassy’s building will receive a $100,000 award,'” the report states. “It is necessary to mention that the steps by Trump to transfer the US Embassy to Holy Qods [Jerusalem] has led to the anger and hatred of Muslims and liberators throughout the world.'”

    Michael Rubin, a former Pentagon adviser and expert on rogue regimes, told the Washington Free Beacon that terrorism of this nature is embedded in the Iranian regime’s hardline stance.

    “Unfortunately, terrorism directed toward diplomats and embassies has become a central pillar of the Islamic Republic’s culture,” Rubin said. “Terrorism is lionized in Iranian schools. This bounty is more the rule than the exception. To blame Washington or Jerusalem is to blame the victim and give terrorists a veto over U.S. policy.”

    Behnam Ben Taleblu, an research fellow at the Foundation for Defense of Democracies, described the poster as repulsive and blamed the Iranian ruling regime for fostering such an attitude.

    “This is nothing short of an invitation to a heinous act of an international terror by a student group that looks up to the world’s foremost state sponsor of terror—the Islamic Republic of Iran,” he said.

  2. TEHRAN – New freight train connections usually only have a limited potential to make global headlines, but a new service launched from China on Thursday could be different. Its cargo – 1,150 tons of sunflower seeds – may appears unremarkable, but its destination, however, is far more interesting: Tehran, the capital of Iran .

    The launch of a new rail connection between Bayannur in China ‘s Inner Mongolia Autonomous Region and Iran was announced by the official news agency Xinhua on Thursday. Its exact path was not described in the dispatch, but travel times will apparently be shortened by at least 20 days in comparison to cargo shipping. The sunflower seeds are now expected to arrive in Tehran in about two weeks.

    While the seeds are making their steady progress across Asia, there’s a growing risk of Iran and Israel <link>breaking into open conflict in the meantime. French President Emmanuel Macron has already predicted that the U.S. decision to pull out of the Iran deal would lead to war, especially after Iranian Foreign Minister Mohammad Javad Zarif warned that the country may restart its nuclear program if U.S. sanctions are imposed. Iranian rocket attacks on Wednesday and the subsequent Israeli retaliatory attacks on Thursday indicated how quickly the situation could indeed escalate.

    While the United States is now urging foreign companies to wind down their operations in Iran , China appears to be doing the opposite. Thursday’s freight train connection launch was only the latest measure Beijing has taken to intensify trade relations with Iran and there seem to be no plans so far to give in to U.S. demands.

    China has indicated it might defy US President Donald Trump’s sanctions on Iran by doing business with it.

    During a press briefing on Wednesday, Chinese Foreign Ministry spokesman Geng Shuang said that Iran and China would “maintain normal economic ties and trade.”

    “We will continue with our normal and transparent practical cooperation with Iran on the basis of not violating our international obligations,” he said. China faces the same problem U.S. allies in Europe are currently facing <link>: Even if European governments are opposed to new sanctions on Iran , European companies would have to abide by those rules or risk severe fines by the United States.

    Even though they have expressed their outrage, some high-ranking European officials have already acknowledged that they would have few options to rein in the United States if it decided to punish European companies for continuing to trade with Iran .

    China , however, appears more defiant.

    Iran ‘s Hassan Rouhani had established a track record for bridge-building in nuclear talks with European powers

    When asked whether China would order its companies to withdraw from Iran to avoid U.S. sanctions, the Chinese Foreign Ministry spokesman indicated that Beijing might defy the Trump administration. “I want to stress that the Chinese government is opposed to the imposition of unilateral sanctions and the so-called long-arm jurisdiction by any country in accordance with its domestic laws,” he said.

    China has to some extent managed to circumvent U.S. sanctions in the past and may be able to do the same again this time. Some analysts have even suggested that Chinese entities could act as intermediaries for European companies that want to continue trading with Iran , but fear violating U.S. sanctions. Such sanctions would be particularly damaging to European businesses operating in the United States, such as plane manufacturer Airbus.

    Speaking to CNBC, former U.S. diplomat Carlos Pascual said that oil sales from Iran via China or Russia to the rest of the world could circumvent U.S. measures.

  3. The Chief of Staff of the Iranian Armed Forces Major General Mohammad Hossein Baqeri has said his country seeks expansion in military cooperation with Afghanistan.

    Gen. Baqeri reportedly informed regarding his country’s intent during a meeting with the Afghan defense minister Gen. Tariq Shah Bahrami.

    “The shared backgrounds between the two countries of Iran and Afghanistan, including religion and language, have brought them together in such way that no obstacle can undermine their close relations, specially in combatting the terrorist groups,” the top Iranian General was quoted as saying by Fars News.

    He also expressed the hope that the Afghan military delegation’s visit would result in more cooperation between the two countries’ armed forces.

    The top Iranian General’s intent to expand military cooperation with Afghanistan comes as the country is accused of supporting the certain insurgent groups in Afghanistan.

    “Iran’s desire for influence in Afghanistan remains strong. Iran seeks increased influence in Afghanistan through government partnerships, bilateral trade, and cultural and religious ties,” Pentagon stated in its report regarding Afghanistan late last year.

    The report also adds that Iran provides some support to the Taliban and publicly justifies its relationship with the Taliban  as a means to combat the spread of ISIS-K in Afghanistan.

    “Iran’s support to the Taliban undermines the Afghan Government’s credibility, adds to instability in the region, and complicates strategic partnership agreements,” Pentagon had warned.

China is Buying America with and without CFIUS

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Statistics found here.

When China is not buying America, they are busy in other parts of the globe buying places like Europe. That is how China is expanding, including stealing intelligence, espionage and hacking. The parts of Britain not owned by Russia are being gobbled up by China. Russia has a long plan and China has a long plan, not too sure about the United States, Britain or other allies.

There has been many discussions in Congress to reform CFIUS, Committee on Foreign Investment in the United States. The most widely noticed scandal with CFIUS was the Uranium One deal.

U.S. watchdog expands scrutiny to more Chinese deals ... photo

Anyway, John Carlin recently spoke with the National Law Journal about bipartisan legislation introduced in November in the U.S. Senate and House of Representatives by U.S. Sen. John Cornyn, R-Texas, and U.S. Rep. Robert Pittenger, R-North Carolina, respectively, to overhaul the CFIUS review process. CFIUS reviews, which are voluntary, are meant to protect the nation from business transactions that pose a national security or strategic risk to the United States. The panel has the authority to require the transaction’s parties to undertake risk mitigation, such as carving out a specific location or element of the deal.

The panel can also recommend that the president block a deal entirely. President Donald Trump, for example, in September blocked the sale of Oregon-based Lattice Semiconductor Corp. to a Chinese company. A deal by Anthony Scaramucci, briefly a White House communications director, to sell his stake in SkyBridge Capital to Chinese company HNA Group Co., which is partly government-owned, appears to be in jeopardy after not yet clearing its nearly yearlong CFIUS review, according to reports in financial media including Bloomberg News in mid-December.Treasury Secretary Steven Mnuchin, who chairs the panel, has urged toughening CFIUS reviews.

While leading the DOJ’s National Security Division, Carlin oversaw the indictment in 2014 of five Chinese military members for economic espionage for hacks against several big U.S. companies, among them United States Steel, Westinghouse, Alcoa Inc. and SolarWorld from 2006 through 2014. The division also investigated the cyberattack on Sony Pictures Entertainment in late 2014 that the U.S. government determined originated in North Korea; and brought charges with the FBI against seven Iranians working for computer companies under contract to the Iranian government and military that conducted cyberattacks between 2011 and 2013 against 46 financial institutions including Wells Fargo and JPMorgan Chase & Co. More here.

The CFIUS review process also appears to be affecting efforts by China Oceanwide Holdings Group Co. Ltd. to acquire Genworth Financial Inc.

BusinessInsider: In 2016, General Electric sold its appliances business to Qingdao-based Haier. China’s Zoomlion made an unsolicited bid for heavy-lifting-equipment maker Terex Corporation, and property and investment firm Dalian Wanda announced a deal to buy a majority stake in Hollywood’s Legendary Entertainment.

On Friday, a Chinese-led investor group announced it would buy the Chicago Stock Exchange. And then there’s ChemChina’s record-breaking deal for the Swiss seeds and pesticides group Syngenta, valued at $48 billion according to Dealogic.

There have already been 82 Chinese outbound mergers-and-acquisitions deals announced this year, amounting to $73 billion in value, according to Dealogic. That’s up from 55 deals worth $6.2 billion in the same period last year.

Last year was a record-breaker for Chinese outbound deals, with 607 deals valued at $112.5 billion in total. Just over one month into 2016, and China is more than halfway to breaking that record.

So what’s going on?

One interpretation is that Chinese companies are simply hungry for growth as that country’s economy slows, and they’re feeding themselves by buying other companies.

“With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth,” Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told Business Insider.

Last year, investment bankers earned $558 million in revenue from Chinese outbound M&A deals, according to Dealogic. This year, that number is at $121 million to date.

But there are, of course, a number of challenge these deals will face — especially in the US.

M&A deals in the US are subject to scrutiny by the Committee on Foreign Investment in the United States, or CFIUS. It recently prevented the $3.3 billion sale of Philips’ lighting business to a group of buyers in Asia.

feb 5 total china m&a deal value
The 82 Chinese outbound deals announced so far in 2016 are worth more than half of 2015’s total Chinese outbound-deal value.
Andy Kiersz/Business Insider

“I would be very surprised if CFIUS did not have an interest in taking a look at this deal,” said Anne Salladin of law firm Stroock & Stroock, referring to the Chicago Stock Exchange deal.

China and Russia Using Same Aggressive Military Playbook

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So, we cannot deny that Russia has been quite aggressive against the United States and our allies that go beyond the conflict in Syria and hacking. Russian spy ships cruise our coastlines, Russian fighter jets buzz our aircraft and Russian mercenaries from the Wagner Group attack our forces. Russia also encroaches on other countries and successfully annexes them such as Crimea and Ukraine.

So, what about China?

Photos show scale of construction in disputed area of ... photo

Well there are those disputed Spratley Island, claimed by several countries where China has taken full control. Now those islands which are part of one the largest maritime shipping channels in the world are weaponized and fortified by China with cruise missiles and surface to air weapons platforms. China is well known for hacking, successful industrial espionage and intellectual property theft.

The placement of the defensive weapons also comes on the heels of China’s recent South China Sea installation of military jamming equipment, which disrupts communications and radar systems. By all accounts, the new coastal defense systems represent a significant addition to Beijing’s military portfolio in one of the most contested regions in the world.

The land-based anti-ship cruise missiles, designated as YJ-12B, allow China to strike surface vessels within 295 nautical miles of the reefs. Meanwhile, the long-range surface-to-air missiles designated as HQ-9B, have an expected range of targeting aircraft, drones and cruise missiles within 160 nautical miles.

The defensive weapons have also appeared in satellite images of Woody Island, China’s military headquarters in the nearby Paracel Islands. More here.

As the Chinese have a military base just one mile from the American base in Djibouti, at least ten nasty encounters by the Chinese against American aircraft have been recorded. So, the Pentagon has filed a demarche.

In a press briefing Thursday, Pentagon Chief Spokesperson Dana White told reporters that the “very serious incidents” had resulted in “two minor injuries,” noting that Chinese laser use “poses a true threat to our airmen.” White said the U.S. has asked China to investigate laser use in the area. “It’s a serious matter. And so we’re taking it very seriously,” White explained. “We expect China to investigate it thoroughly.”

China’s ‘neighbouring base’ in Djibouti worries Pentagon ... photo

Camp Lemonnier is the only permanent American base in Africa and is home to around 4,000 troops. Opened in 2001, the installation has become a vital staging point for U.S. counter-terrorism operations, especially as a regional hub for American drone missions launched from a network of other nearby bases. Initially an 88-acre base, an agreement was signed with the Djibouti government in 2006 to expand the facility to 500 acres.

Chinese military observers told the Post that China’s laser use may be trying to scare off birds near its airfield or disrupting spy drones flying above, rather than targeting foreign pilots. Analyst Zhou Chenming told the newspaper, “The Chinese and U.S. bases in Djibouti are really close, so one could disturb the other if the two sides don’t have a proper communication mechanism.”

*** But hold on…Tucker Carlson asked a handful of key questions to Senator Marco Rubio. The answers were terrifying.

Col. Kang Defects from North Korea, Manhunt Underway

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Mr. Kang is likely under protection of the West and has offered key intelligence that has aided the United States, Japan and South Korea in the talks with the Kim regime.

One of North Korea’s most senior intelligence officials, who played a major role in building Pyongyang’s nuclear weapons program, has disappeared and is believed to have defected to France or Britain, according to sources. South Korean media identified the missing official as “Mr. Kang”, and said he is a colonel in North Korea’s State Security Department (SSD), also known as Ministry of State Security. Mr. Kang, who is in his mid-50s, enjoyed a life of privilege in North Korea, because he is related to Kang Pan-sok (1892-1932), a leading North Korean communist activist and mother to the country’s late founder, Kim Il-sung.

According to South Korean reports, Kang was in charge of North Korea’s counter-espionage operations in Russia and Southeast Asia, including China. He is also believed to have facilitated secret visits to Pyongyang by foreign nuclear scientists, who helped build North Korea’s nuclear weapons program. In recent years, Kang was reportedly based in Shenyang, the largest Chinese city near the North Korean border, which is home to a sizeable ethnic Korean population. According to reports, Kang led Unit 121, an elite North Korean hacker group based in Shenyang, with the aim of carrying out cyber-attacks without implicating North Korea. The South Korean-based DailyNK website said on Wednesday that Kang had been based at the Zhongpu International Hotel in Shenyang (until recently named Chilbosan Hotel), which has historically been operated through a joint Chinese-North Korean business venture and is known to host numerous North Korean government officials.

Chilbosan Hotel Shenyang (Shenyang) photo

But according to DailyNK, Kang disappeared from Shenyang in February and is now believed to have defected, possibly “to France or Great Britain”. The Seoul-based website said Kang took “a lot of foreign currency with him” as well as “a machine capable of printing American dollars”. Following Kang’s disappearance, the government in Pyongyang launched a worldwide manhunt for him, sending at least 10 agents to assassinate him before he is given political asylum in the West, said DailyNK. Pang’s family, including his wife and children, are believed to still be in Pyongyang.

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While it is reported that North Korea has released 3 Americans from a labor camp to detention at a hotel from observation and deprogramming. There is no word on full release however, there is more going on with behind the scenes and that includes this defection along with the unit this Colonel worked for while living and stationed in China.

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The North Korean hackers hit the systems of the Israeli energy company to attempt to penetrate the best electronic protection systems, South Korea’s newspaper Naver reported. According to the company’s experts, the North Korean cyber actors have real capabilities to damage the infrastructure of the United States, Japan and other countries.

Last year, experts warned that the North Korean cyber army could be far more dangerous to global security than its nuclear missiles. “North Korean cyberattacks and other malicious cyber activities pose a risk to critical infrastructure in countries around the world and to the global economy,” the statement said.

Since 2011, Pyongyang has been scaling up its cyber capacities. The North Korean regime is suspected to be exploiting its cyber weapons for political purposes to intimidate its opponents as well as to steal crypto-currency.

North Korean hackers are involved in major cyber offensives
In 2013, the three largest broadcasting companies and two banking institutions of South Korea suffered a massive attack against their systems. According to Shinhan Bank and Nonghyup Bank representatives, about 32,000 computers were infected while internet banking and ATMs stopped working. While Pyongyang still denies any involvement, cybersecurity experts pointed to North Korean group Lazarus.

In August 2014, North Korea hacked the Channel 4 to prevent the production of a drama depicting the fictional story of a nuclear scientist kidnapped in the country.

However one of the most advanced attacks was the intrusion into the network of Sony Corporation in September 2014. The malware destroyed 70% of information stored in the company’s computers. According to Jim Lewis, senior fellow at the Center for Strategic and International Studies, the attack turned out to be the worst of its type on a company on U.S. soil.

North Korean hackers raise funds for regime
International sanctions forced Kim Jong-un to look for alternative and illegal sources of financing. By late 2015, the North Korean hackers shifted their attention to the global financial system, according to researchers at BAE Systems, FireEye and Symantec.

In 2016, they were about to commit the most astonishing bank robbery in history. The cybercriminals were close to stealing a billion dollars from the Federal Reserve of New York and only a misprint in the word “foundation” kept them from it.

North Korean state-backed hackers have been also accused of the WannaCry ransomware attack that affected hundreds of thousands of computers worldwide in 2017. Taking into account large amounts of stolen money, it becomes clear that despite the growing political and economic pressure Pyongyang will be able to stay afloat for long.

“Winter is coming”
According to the commander of the US forces in South Korea, General Brooks, the North Korean military forces are currently capable of carrying out the most efficient and well-prepared cyber-attacks in the world.

Robert Hannigan, former director of the Center for Government Communication of Great Britain says that as of June 2017, North Korea had 1,700 state-sponsored hackers and more than 5,000 support staff personnel. They all operate under the Main Intelligence Department of North Korean Armed Forces, known as Unit 586. The so-called Bureau 121 is the main unit conducting cyberattacks abroad. The US Department of Homeland Security refers to this structure as Hidden Cobra, while private companies gave the common name Lazarus to all North Korean hackers. But no one exactly knows how many different subdivisions the North Korea’s cyber-army has.

Earlier this year, cybersecurity firm McAfee reported that hackers have targeted organizations involved in the 2018 Pyeongchang Winter Olympics, which are set to start this week.  The malicious actors attempted to obtain passwords and sensitive financial data. Speculations have risen that the North could be responsible amid anti-North Korean demonstrations in the Korean Republic and increasingly hostile rhetoric between Pyongyang and Washington.

Some analysts believe that the ongoing talks between Pyongyang and Seoul are Kim Jong-un ruse aimed to distract attention from the North Korea’s nuclear program and its malicious activities in cyberspace. But even if talks go smoothly, Pyongyang will never give up further development of its cyber weapons.

North Korea’s advanced cyber warfare capabilities could be truly scaring and risk escalating the crisis. As international bodies consider enforcing sanctions, Pyongyang continues its campaign of outright theft. Korean Olympic detente won’t last forever.

Next time when Kim Jong-Un feels trapped or insulted his cyber army will be ready to wreak havoc.