Australia’s top intelligence official has issued an unusually blunt warning about the growing sophistication and ambition of Chinese state-backed hackers, accusing them of probing the nation’s critical infrastructure and telecommunications systems in operations that mirror campaigns already observed in the United States.
Speaking at a financial regulation conference in Melbourne on Wednesday, Mike Burgess, the director-general of the Australian Security Intelligence Organisation (ASIO), said the activity represents a widening of China’s offensive cyber operations, which once focused primarily on American military, government, and industrial networks.
“We have seen Chinese hackers probing our critical infrastructure,” Mr. Burgess said, referencing the group known as Volt Typhoon, which U.S. intelligence agencies have previously accused of infiltrating American utilities and communications systems to prepare for potential sabotage. “Once access is gained — the network is penetrated — what happens next is a matter of intent, not capability.”
His remarks underscore a growing unease among Western intelligence agencies, which believe China is building a long-term capacity to disrupt supply chains, energy grids, transportation routes, and communications networks during a geopolitical crisis.
Two Chinese Hacking Units Cited
Mr. Burgess identified two state-linked units — Volt Typhoon and Salt Typhoon — as key actors behind the probes into Australian networks. While Volt Typhoon has been accused of pre-positioning inside U.S. critical infrastructure, Salt Typhoon has been linked to a range of espionage-focused intrusions targeting telecommunications companies across both Australia and the United States.
“These intrusions are low-cost, deniable, and scalable,” he said, noting that cyber-enabled espionage offers foreign intelligence services a “high-impact” tool without the political consequences associated with traditional covert operations.
Australian, American, and allied intelligence services warned earlier this year that the Volt Typhoon group had maintained persistent access inside the networks of U.S. critical industries for years, often using sophisticated techniques designed to avoid detection.
A Disputed Accusation
China has repeatedly rejected such allegations. When asked on Wednesday about the ASIO chief’s comments, Foreign Ministry spokesman Guo Jiakun said the Australian official had “repeatedly hurled attacks at China, spread disinformation and deliberately provoked confrontation.”
Beijing, he said, had filed a formal diplomatic protest.
China maintains that Western intelligence agencies use cyber accusations as political tools to justify restrictive policies in technology and trade — including Australia’s high-profile 2018 decision to exclude Chinese companies from its 5G telecommunications rollout.
Echoes of the 5G Debate
Mr. Burgess referenced that decision in his remarks, describing telecommunications networks as “at the top of the nation’s most critical infrastructure list.” That classification had prompted Canberra to bar “high-risk vendors” such as Huawei Technologies from participating in 5G construction — a move later echoed by the United States, United Kingdom, and several European nations.
Since then, cybersecurity has become a key fault line in Australia–China relations, intersecting with tensions over trade restrictions, regional influence, and allegations of espionage.
A Broader Strategic Contest
Intelligence officials in Canberra and Washington increasingly view Chinese state-backed hacking as part of a wider strategic effort to reshape the digital and physical infrastructure of the Indo-Pacific. Cyber intrusions, they warn, could be used not only for espionage but also to sow confusion or disrupt critical services during a confrontation.
“I do not think we — and I mean all of us — truly appreciate how disruptive, how devastating, this could be,” Mr. Burgess said.
As Australia deepens intelligence cooperation with the United States and the United Kingdom through mechanisms like AUKUS, officials say more alerts can be expected as the country works to modernize its cyber defenses, update its national security posture, and prepare for a future in which digital intrusions could represent the opening act of geopolitical conflict.
