The government has sanctioned a Chinese company and two individuals for participating in a “pattern of malicious cyber activity” against UK and US democratic institutions, but is trying to avoid raising any “trade issues” with Beijing.

According to the Foreign Office, the company and individuals were allegedly part of Advanced Persistent Threat Group 31 (APT31) and are described as “state-affiliated”. They purportedly participated in cyber campaigns against democratic institutions and parliamentarians.

Coalition

The UK was joined in its efforts by the US and New Zealand.

Foreign secretary Lord Cameron said:

“We will always defend ourselves from those who seek to threaten the freedoms that underpin our values and democracy. One of the reasons that it is important to make this statement is that other countries should see the detail of threats that our systems and democracies face.”

US moves

The US Department of Justice unsealed indictments against seven defendants for the cyberattacks, according to a press statement.

“The US is focused on both disrupting the dangerous and irresponsible actions of malicious cyber actors, as well as protecting our citizens and our critical infrastructure,” said Treasury under-secretary for terrorism and financial intelligence Brian E. Nelson.

“Through our whole-of-government approach and in close coordination with our British partners, Treasury will continue to leverage our tools to expose these networks and protect against these threats.”

Under US law, all US assets owned by the designated persons will now be blocked and must be reported to the Office of Foreign Assets Control. Dealing with these assets will require a licence.

China rebuttal

Beijing, for its part, denied the accusations levelled by the UK and US, calling them “slander”

“This is purely political manipulation. China is strongly dissatisfied with this and firmly opposes it,” ministry spokesperson Lin Jian told a press conference.

The moves come at a time of sensitivity for both the UK and US, as they enter campaign season for respective parliamentary and presidential elections this year.

No trade ‘issues’

A high-ranking UK cabinet member emphasised that the government’s response was designed to avoid exacerbating trade tensions between London and Beijing.

“Clearly starting some sort of trade issues is what we want to avoid,” education secretary Gillian Keegan told GB News this morning (26 March), noting that China was a “large trading partner” for the UK.

China was the UK’s largest trade partner in the four quarters to the end of Q3, accounting for £100.9bn in total imports and exports.

“It is an escalation, but perhaps only because the UK has been rather mild in its previous actions,” Jonathan Sullivan, an associate professor and China specialist at the University of Nottingham, told CNN.

Former Conservative Party leader and noted China hawk Iain Duncan Smith said that the move was “too little, too late” and called for the UK to go further.