China suspected in cyberattack on Swiss space company

Looking ahead, the company is confident. With the commissioning of the new production capacities, the remaining "Beyond Gravity" division will have a powerful basis from 2024 to profitably utilise the expected growth in the industry, according to the press release. KEYSTONE

An investigation by Swiss public television SRF has revealed that company officials suspect China was behind a cyberattack on the Swiss state-owned space company Beyond Gravity.

Beyond Gravity manufactures satellite and rocket technology and is owned by the federal government. Earlier this month, the company reported a targeted cyberattack. Beyond Gravity stated that the attack was carried out by a presumably “highly professional actor”. This suggested that it could have been a state-sponsored operation.

Investigations by SRF now confirm that Beyond Gravity and the federal government believe China is the attacker, as several individuals involved have told SRF.

Neither the company itself nor the Federal Department of Defense (VBS) – which is investigating the attack alongside the Federal Office for Cybersecurity – wants to officially confirm the suspicion that China is behind it. The origin of the attacker remains the subject of ongoing investigations, Beyond Gravity writes. However, according to SRF information, there is an internal assumption that China is behind the attack.

‘China Has Its Sights Set on Space’

Ralph Weber, a professor at the European Institute of the University of Basel, is not particularly surprised. His research focuses, among other things, on Chinese intelligence services. Space has long been a focus of intelligence agencies, and the rivalry between the US and China is intense, says Weber.

According to its own statements, Beyond Gravity has filed a criminal complaint against persons unknown with the Bern Public Prosecutor’s Office regarding the cyberattack.

The Office of the Attorney General of Switzerland, which is responsible for prosecuting political crimes such as espionage, has not yet taken any action.

Last May, for example, a German couple of Chinese origin was arrested in Germany and accused of espionage, including in the space sector.

There is talk of a data breach

It is unclear what information the attackers obtained from Beyond Gravity. However, it seems clear that data was stolen. This can also be inferred from the statement by Green Party parliamentarian Maya Graf. As chair of the Senate’s Audit Committee, she represents the parliament’s oversight authority.

Beyond Gravity is part of the federal conglomerate Ruag International AG. For Ruag, this is a repeat of history: More than ten years ago, the group was already the victim of a targeted and extensive cyberattack. The spyware used in that attack had seriously compromised IT security, as was revealed in 2016.

At the time, experts suspected Russia was behind the attack, and the Office of the Attorney General of Switzerland opened criminal proceedings. In 2018, however, the Office of the Attorney General suspended the proceedings because it was unable to identify the perpetrators.

The cyberattack had serious consequences for the Ruag Group as a whole. The Swiss government decided to split up the group. The division that primarily serves the Swiss Army was spun off. It now operates under the name Ruag MRO. Several business units of the remaining Ruag International AG were subsequently sold – with the exception of the space company Beyond Gravity.

Data breach investigation

“The Control Committees of the House of Representatives and the Senate have been informed of the data breach,” says Graf. A report on the security incident has been submitted to them. The relevant subcommittee within the Control Committee will determine whether further action is necessary.

Beyond Gravity supplies, for example, the European Ariane rocket program and NASA. China, for its part, is a major space power. To what extent could Beyond Gravity’s expertise actually be useful to the country?

“We often imagine that espionage operations involve the theft of major technologies,” says Ralph Weber. “In practice, however, it’s often also about getting hold of details.” These details aren’t significant on their own. But if an intelligence service pieces them together, they could be of great importance.

How should Switzerland respond?

If hard evidence were ever to emerge against China, the Federal Council would have to weigh how to respond. The Federal Council is usually cautious, says Weber. A public accusation could jeopardise foreign policy interests. For example, Switzerland and China recently concluded negotiations on an expansion of their free trade agreement. The treaty has not yet been signed or ratified.

Switzerland usually tries to resolve espionage cases discreetly, for instance by simply allowing suspects to leave the country, says Weber. Germany, on the other hand, is increasingly making Chinese espionage operations public.

The Federal Council actually wanted to sell Beyond Gravity. But then Parliament vetoed the move for security reasons.

It remains unclear how the state-owned corporation should be positioned. In mid-September, the Federal Council discussed possible solutions without reaching a decision.

The cyberattack is likely to weaken Beyond Gravity during this sensitive transition period.

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Translated from German, reviewed by an English Department journalist.