6 August 2025

Microsoft caught in crossfire of U.S.-China cyber war

Noor Bazmi

On Friday, China’s Cyber Security Association said the U.S. used a flaw in Microsoft’s messaging service to steal military intelligence and hit its defense industry. The group functions as a part of China’s Cyberspace Administration. It said in a Bloomberg report that American operators launched two significant cyberattacks against defense-related enterprises in China. While withholding the firms’ identities, it added that the intruders exploited bugs in Microsoft’s Exchange platform to access the email infrastructure of a principal defense supplier for close to twelve months.

Microsoft, based in Redmond, Washington, has often blamed Chinese government-backed groups for similar attacks. Back in 2021, what was believed to be a Chinese-led effort breached thousands of its Exchange servers. By 2023, a separate purported Chinese initiative had seized control of email accounts used by high-ranking U.S. government personnel. A later government assessment criticized Microsoft, stating the 2023 incident revealed a “cascade of security failures.”

In the previous month, Microsoft disclosed that hacking groups tied to China’s government had taken advantage of weaknesses in its SharePoint sharing service. Every nation state in the world carries out offensive cybersecurity campaigns against others,” said Jon Clay, vice president of threat intelligence at Trend Micro. “I’m assuming at this point, because of the recent SharePoint vulnerability which was also reported by Cryptopolitan, that Microsoft attributed to China, they are coming out and saying, hey, the U.S. has been targeting us with exploits.”

Officials at the U.S. Embassy in Beijing had not offered an immediate response when contacted China is using public hacking claims to pressure Taiwan In a recent analysis, Wiz.io’s strategic threat intelligence director, Ben Read, observed that Beijing has more frequently used open accusations of hacking to pressure Taiwan and influence global talks on cybersecurity. At the start of the year, the Chinese government claimed that groups based in Taiwan launched multiple attacks, despite the island’s autonomous governance.

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