if they were exposed. It was like they were daring the Americans to come after them, believing they wouldnât.
The spies had made off with potentially useful intelligence, but theyâd also set back the development of the F-35. US officials later said that rampant penetrations of subcontractorsâ computers had forced programmers to rewrite software code for the jet, contributing to a one-year delay in the program and a 50 percent increase in its cost. The Chinese might never have to fight the jet if it didnât get off the ground. But China also moved forward with its own design. In September 2012, during a visit by Defense Secretary Leon Panetta, Chinese officials leaked photographs of their newest fighter jet parked on an airfield. It bore a number of design similarities to the F-35, which was no coincidence, US officials acknowledged.The Chinese jetâs design was based partly on information the spies had stolen from American companies six years earlier.
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The CEOs werenât sure why theyâd been summoned to the Pentagon.Or why theyâd been granted temporary top-secret security clearances. Looking around the room, they saw plenty of familiar faces. The chief executives or their representatives worked for the twenty biggest US defense contractors: Lockheed Martin, Raytheon, General Dynamics, Boeing, and Northrop Grumman, among others. These were blue-chip companies in their own right, and collectively they had spent decades building the American war machine. Whatever had brought them all together at Defense Department headquarters that summer day in 2007, on such short notice, it couldnât be good news.
The executives gathered outside a âsensitive compartmented information facility,â or SCIF (pronounced âskiffâ), a room built to be impervious to eavesdropping. Their hosts began what had been billed as a âthreat briefing,â which didnât seem unusual, since military officers routinely talked to defense company chiefs about threats to national security. But this briefing was about threats to corporate security. Specifically, the corporations run by these executives.
Military personnel whoâd investigated the F-35 breach described what theyâd learned. A massive espionage campaign had targeted each of the companiesâ computer networks. The spies werenât looking just for information about the F-35; they stole as many military secrets as they could find. Spies had overrun the companiesâ weak electronic defenses and relayed classified information back to their home servers. They had sent employees working on secret projects innocuous-looking e-mails that appeared to come from trusted sources inside the company. When the employee opened such an e-mail, it installed a digital backdoor and allowed the Chinese to monitor every keystroke the employee typed, every website visited, every file downloaded, created, or sent. Their networks had been infiltrated. Their computers compromised and monitored. Americaâs military-industrial complex had, in the language of hackers, been owned.
And the spies were still inside these companiesâ networks, mining for secrets and eavesdropping on employeesâ communications. Maybe they were monitoring the executivesâ private e-mails right now. âA lot of people went into that room with dark hair, and when they came out, it was white,â says James Lewis, a prominent cyber security expert and a fellow at the Center for Strategic and International Studies, a think tank in Washington, who knows the details of the meeting.
These companies were the weak link in the security chain. Pentagon officials told the executives that responding to theft of military secrets was a matter of urgent national security. And for the companies, it was a matter of survival. Most of their businesses depended on the money they made selling airplanes, tanks, satellites, ships, submarines, computer systems, and