Chinese capabilities in computer network operations pose a genuine risk...

control, communications, computers, intelligence, surveillance and reconnaissance; the infrastructure “has in turn been a catalyst for the development of an integrated information warfare capability capable of defending military and civilian networks while seizing control of an adversary’s information systems during a conflict,” said the report, prepared by Northrop Grumman. People’s Liberation Army (PLA) commanders will “almost certainly attempt to target” U.S. infrastructure “with both electronic countermeasures weapons and network attack and exploitation tools, likely in advance of actual combat to delay U.S. entry or degrade capabilities in a conflict,” the report said. The report also warns of the potential for disruption of the U.S. telecom supply chain: Without “strict control” of the upstream channel of integrated circuit production, the PLA could deliberately modify semiconductors to gain covert access and monitoring of sensitive systems, the report said. Downstream distribution channels are even more at risk, because a foreign intelligence service could release counterfeit hardware that “already contains the Trojanized access built into the firmware or software."