Blockbuster Report Details Chinese Spying on U.S.
Author: Greg Valliere
December 12, 2023
U.S. RELATIONS WITH CHINA could revert back to a deep freeze, in the wake of a detailed Washington Post expose of widespread spying by Beijing into the U.S. infrastructure.
THE SPYING HAS LONG BEEN SUSPECTED, but explicit details in this morning’s Post may become still another political headache for President Biden. Despite ample evidence, Biden did not raise this issue in his four hour meeting last month with Xi Jinping.
THE CHINESE APPARENTLY HAVE PENETRATED U.S. power and water utilities as well as communications and transportation systems. The hackers have focused on Texas’s power grid, which operates independently from electrical systems in the rest of the country. Utilities in Hawaii and the West Coast have been repeatedly targeted.
HACKERS affiliated with China’s People’s Liberation Army have burrowed into the computer systems of about two dozen critical U.S. entities over the past year, these experts told the Post.
THESE INTRUSIONS are part of a broader effort to develop ways to sow panic and chaos or snarl logistics in the event of a U.S.-China conflict in the Pacific, experts told the Post.
THE CHINESE APPARENTLY have been particularly focused on Hawaii, which is home to the Pacific Fleet, and to at least one port as well as logistics centers. This suggests that the Chinese military wants the ability to complicate U.S. efforts to ship troops and equipment to the region if a conflict breaks out over Taiwan, the Post said.
THESE DISCLOSURES build on the annual U.S. by the Office of the Director of National Intelligence, which warned that China “almost certainly is capable” of launching cyberattacks that would disrupt U.S. critical infrastructure, including oil and gas pipelines and rail systems.
DESPITE SOME IMPROVEMENT in communications between the two countries, huge obstacles persist in addition to the hacking — China’s treatment of dissidents, its lack of transparency on Covid, and its threats to dominate the South China Sea. But its widespread spying that has generated the most controversy.
HEARINGS ON THIS HACKING almost certainly will be the subject ot extensive congressional hearings after the holidays, and they probably will increase support for “Buy America” programs, with no easing of sanctions.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.
AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.
Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
For further information, please visit AGF.com.
©2025 AGF Management Limited. All rights reserved.
