China’s Hack Confession: Taiwan Tensions Escalate

As global tensions rise, cybersecurity risks are no longer just a technical concern, they're a matter of national security. At CyberStreams, we help manufacturers and aerospace companies stay ahead of these growing threats, particularly those originating from state-sponsored actors.

The China-Taiwan Cyber Connection

Recent unverified reports suggest that China has admitted to cyber intrusions targeting U.S. infrastructure, citing American support for Taiwan as justification. This aligns with a 71% increase in China-linked cyberattacks on U.S. defense contractors in 2024, an alarming trend aimed at stealing proprietary designs and disrupting supply chains (IBM X-Force, 2025).

Tensions in the Taiwan Strait are rising rapidly. With the U.S. increasing arms sales to Taiwan and China conducting aggressive military exercises, cyber warfare has become a preferred battleground (Reuters, May 27, 2025).

One of the most notorious actors in this space is China’s Silk Typhoon group. Known for a 2023 breach of the U.S. Treasury that compromised over 150,000 emails, this group uses advanced tactics like spear phishing, zero-day exploits, and Adversary-in-the-Middle (AiTM) attacks to evade even multi-factor authentication (CNN, February 2025).

The Supply Chain: A Weak Link in Strong Systems

According to the 2025 Verizon Data Breach Investigations Report, nearly 47% of manufacturing-related breaches originated from supply chain vulnerabilities. Most often, attackers enter through third-party vendors with insufficient security protocols.

CyberStreams recently supported an aerospace client who faced a spear phishing campaign targeting their logistics chain. We quickly deployed Microsoft 365 Protection, performed CMMC-aligned audits, conducted simulated phishing training, and restricted vendor access. The result? A near-breach was fully contained, without operational downtime.

Compliance Isn’t Optional: CMMC and NIST 800-171

The Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) framework now mandates NIST 800-171 compliance for contractors by 2026. Non-compliance could lead to disqualification from future defense contracts. As Taiwan remains a geopolitical flashpoint, manufacturers and aerospace firms must act decisively to protect intellectual property and meet rising security expectations.

Three Takeaways for Leadership Teams

Here are actionable steps your organization can take to defend against these threats:

1. Harden Supply Chain Security

Audit your third-party vendors for CMMC compliance. Our Cyber Fit Assessment is an ideal first step to pinpoint and mitigate vulnerabilities across your supply chain.

2. MFA Alone Is No Longer Enough

Phishing campaigns using AiTM attacks can now bypass MFA. While MFA remains important, CyberStreams' Microsoft 365 Protection provides additional layers of defense, securing your access points even when traditional methods fall short.

3. Educate Teams on Geopolitical Threats

Your people are the first line of defense. Our annual cybersecurity training, weekly 2-minute micro-trainings, and monthly newsletters ensure every employee is prepared for today’s evolving threat landscape.

Conclusion: Security Enables Strategy

Cybersecurity is no longer just about blocking threats, it's about empowering your business to grow, innovate, and stay resilient. As international tensions intensify, especially surrounding Taiwan, cyberattacks will only become more aggressive and sophisticated.

At CyberStreams, we specialize in helping manufacturers and aerospace firms navigate this complex environment with tailored, compliance-driven solutions. From protecting intellectual property to ensuring operational continuity, we’re here to keep your mission secure.

Ready to assess your risk posture and take proactive steps?
Contact us today or learn more about our Cyber Fit Assessment and Microsoft 365 Protection solutions at www.cyberstreams.com.