Chinese military unit charged with cyber-espionage against US firms

The Justice Department accused five members of the Chinese military of conducting economic cyber-espionage against American companies, marking the first time that the United States has leveled such criminal charges against a foreign country.

Industries targeted by the alleged cyberspying ranged from nuclear to steel to solar energy, officials said. The hacking by a military unit in Shanghai, they said, was conducted for no other reason than to give a competitive advantage to Chinese companies, including state-owned enterprises.

Attorney General Eric Holder Jr said: “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response. . . . Success in the international marketplace should be based solely on a company’s ability to innovate and compete, not on a sponsor government’s ability to spy and steal business secrets.” Attorney General Holder added that the Obama Administration “will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market.”

In response, China’s Foreign Ministry charged that the US government “fabricated facts” in the indictment, which it said “seriously violates basic norms of international relations and damages Sino-US cooperation and mutual trust.” It said China lodged a “protest” with the United States, urging it to “correct the error immediately and withdraw its so-called prosecution.”