The United States has decided to halt plans to impose sanctions on China’s Ministry of State Security over a large-scale cyber spying campaign, aiming to preserve a trade truce reached earlier this year, according to the Financial Times.
The cyber campaign, tracked under the name Salt Typhoon, involved Chinese-linked hackers targeting multiple U.S. and global telecommunications firms, as well as a U.S. state Army National Guard network over several years. The campaign reportedly represented a significant cyberespionage effort.
In addition to suspending sanctions, the Trump administration will not implement major new export controls against China, sources cited by the Financial Times confirmed. The White House has not issued an official comment, and Reuters could not independently verify the report.
The move follows months of trade tensions between the two nations. On October 30, Chinese President Xi Jinping and U.S. President Donald Trump reached a framework agreement in South Korea. Under this deal, the U.S. agreed not to impose 100% tariffs on Chinese imports, while China committed to holding off on new export licensing rules for critical rare earth minerals and magnets.
Analysts suggest that Washington’s decision to pause sanctions reflects an effort to maintain momentum in ongoing trade negotiations while balancing concerns about cybersecurity threats from Beijing-linked actors.
