China is increasingly attempting to influence global affairs through sophisticated cyber operations, according to a new report from the Microsoft Threat Analysis Center (MTAC) highlighting cyber activities originating from East Asia.

The report details China’s deployment of fake social media accounts to poll American voters on divisive issues, aiming to sow discord and potentially sway the outcome of the US presidential election in their favor. Affiliated with the Chinese Communist Party (CCP), the fake accounts pose controversial questions on sensitive domestic topics, trying to gauge voter sentiments and demographics. Moreover, China has increased its use of AI-generated content to disseminate propaganda and sow division not only in the US but also globally. Despite these efforts, evidence suggests limited success in altering public opinion.

China's geopolitical ambitions remain steadfast, with a particular focus on the South Pacific islands, the South China Sea region, and the US defense industrial base, the report notes. China has intensified efforts in sophisticated influence operations aimed at portraying the US unfavorably and augmenting its strategic interests. Notably, during the Taiwanese presidential election in January 2024, CCP-affiliated actors leveraged AI-generated content for the first time, marking a concerning escalation in foreign election interference tactics.

On the other hand, North Korea's cyber operations remain focused on financial gain and strategic advantage. The report emphasizes North Korea's relentless pursuit of cryptocurrency heists and software supply-chain attacks, predominantly targeting adversaries in its perceived national security sphere – the United States, South Korea, and Japan. These illicit activities serve dual purposes: funding the regime's weapons program and gathering intelligence on geopolitical rivals.

According to United Nations estimates, North Korean cyber actors have pilfered over $3 billion in cryptocurrency since 2017, with heists totaling hundreds of millions in 2023 alone. Furthermore, Microsoft said it has observed the use of AI-powered tools by North Korean actors, such as Emerald Sleet (aka Kimsuky, Velvet Chollima, Black Banshee, and Thallium), to enhance the efficiency and efficacy of their cyber operations.