Confidential report lists U.S. weapons system designs compromised by Chinese cyberspies

Designs for many of the nation’s most sensitive advanced weapons systems have been compromised by Chinese hackers, according to a report prepared for the Pentagon and to officials from government and the defense industry.
Among more than two dozen major weapons systems whose designs were breached were programs critical to U.S. missile defenses and combat aircraft and ships, according to a previously undisclosed section of a confidential report prepared for Pentagon leaders by the Defense Science Board.
Experts warn that the electronic intrusions gave China access to advanced technology that could accelerate the development of its weapons systems and weaken the U.S. military advantage in a future conflict.
The Defense Science Board, a senior advisory group made up of government and civilian experts, did not accuse the Chinese of stealing the designs. But senior military and industry officials with knowledge of the breaches said the vast majority were part of a widening Chinese campaign of espionage against U.S. defense contractors and government agencies.

The significance and extent of the targets help explain why the Obama administration has escalated its warnings to the Chinese government to stop what Washington sees as rampant cyber­theft.
In January, the advisory panel warned in the public version of its report that the Pentagon is unprepared to counter a full-scale cyber-conflict. The list of compromised weapons designs is contained in a confidential version, and it was provided to The Washington Post.
Some of the weapons form the backbone of the Pentagon’s regional missile defense for Asia, Europe and the Persian Gulf. The designs included those for the advanced Patriot missile system, known as PAC-3; an Army system for shooting down ballistic missiles, known as the Terminal High Altitude Area Defense, or THAAD; and the Navy’s Aegis ballistic-missile defense system.
Also identified in the report are vital combat aircraft and ships, including the F/A-18 fighter jet, the V-22 Osprey, the Black Hawk helicopter and the Navy’s new Littoral Combat Ship, which is designed to patrol waters close to shore.
Also on the list is the most expensive weapons system ever built — the F-35 Joint Strike Fighter, which is on track to cost about $1.4 trillion. The 2007 hack of that project was reported previously.
China, which is pursuing a comprehensive long-term strategy to modernize its military, is investing in ways to overcome the U.S. military advantage — and cyber-espionage is seen as a key tool in that effort, the Pentagon noted this month in a report to Congress on China. For the first time, the Pentagon specifically named the Chinese government and military as the culprit behind intrusions into government and other computer systems.
As the threat from Chinese cyber-espionage has grown, the administration has become more public with its concerns. In a speech in March, Thomas Donilon, the national security adviser to President Obama, urged China to control its cyber-activity. In its public criticism, the administration has avoided identifying the specific targets of hacking.
But U.S. officials said several examples were raised privately with senior Chinese government representatives in a four-hour meeting a year ago. The officials, who spoke on the condition of anonymity to describe a closed meeting, said senior U.S. defense and diplomatic officials presented the Chinese with case studies detailing the evidence of major intrusions into U.S. companies, including defense contractors.
In addition, a recent classified National Intelligence Estimate on economic cyber-espionage concluded that China was by far the most active country in stealing intellectual property from U.S. companies.
The Chinese government insists that it does not conduct ­cyber-
espionage on U.S. agencies or companies, and government spokesmen often complain that Beijing is a victim of U.S. cyberattacks.
Obama is expected to raise the issue when he meets with Chinese President Xi Jinping next month in California.
A spokesman for the Pentagon declined to discuss the list from the science board’s report. But the spokesman, who was not authorized to speak on the record, said in an e-mail, “The Department of Defense has growing concerns about the global threat to economic and national security from persistent cyber-intrusions aimed at the theft of intellectual property, trade secrets and commercial data, which threatens the competitive edge of U.S. businesses like those in the Defense Industrial Base.”
The confidential list of compromised weapons system designs and technologies represents the clearest look at what the Chinese are suspected of targeting. When the list was read to independent defense experts, they said they were shocked by the extent of the cyber-espionage and the potential for compromising U.S. defenses.