A recent report by cybersecurity firm Recorded Future has revealed strong connections between the Beijing Institute of Electronics Technology and Application (BIETA) and China’s Ministry of State Security (MSS). It’s believed that BIETA, along with its subsidiary Beijing Sanxin Times Technology Co (CIII), was formed around the same time as the MSS in 1983. Based in the MSS compound, both companies are thought to be front organizations for the ministry, providing technology and expertise to support Chinese intelligence, counterintelligence, and military operations. These activities include creating tools for intelligence officers, researching methods of covert communications, developing forensic equipment, and acquiring foreign technology for network penetration testing and military planning.
The research and development conducted by BIETA and CIII is extensive. BIETA operates four research labs that focus on communication, multimedia, information security, and electromagnetic technology. The firm also has a quality testing center for integrated circuits and other products. In addition to a focus on technology miniaturization and other fields, both companies heavily research steganography—the practice of concealing information within other data. This technology is likely used for both defensive and offensive operations by the MSS, and Chinese threat actors have been seen using it to deploy malware. CIII’s website also advertises tools that can be used to detect steganography, along with various foreign software it likely resells.
In addition to their technological work, BIETA and CIII are also involved in the sale of various products and services. CIII provides security and forensic investigation tools that assist with counterintelligence operations, including signal jamming and preventing data collection. The firm also offers a fingerprint-secured USB drive, which was likely developed by either BIETA or CIII. Despite not engaging in illicit activities themselves, both companies are believed to be instrumental in helping the MSS, which is involved in a wide range of activities, including domestic cybersecurity, economic and strategic intelligence, and counterespionage.
The report also highlights the deep ties between BIETA personnel and the MSS. At least four of BIETA’s employees have direct links to the ministry, with three of them very likely being MSS personnel. This close relationship allows the MSS to benefit from BIETA and CIII’s access to international experts and conferences. The firms’ collaboration with academics and acquisition of foreign technology also pose significant risks of technology transfer.
For foreign export control authorities, this relationship between the companies and the Chinese government is a major concern. The firms’ access to international expert communities and foreign technology creates a risk of technology transfer. Authorities worry about the Chinese intelligence community and military gaining access to advanced technologies, particularly those related to covert communications like steganography and network penetration testing.
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