Australia is the latest country to have its national intelligence entity, \u201cAustralian Security Intelligence Organisation (ASIO), issue a warning about nation states' activities within their area of remit.\u201cEspionage and foreign interference is an insidious threat \u2014 activities that appear to be relatively harmless today can have significant future consequences,\u201d wrote Duncan Lewis, director general of ASIO, in the forward of ASIO\u2019s annual report.\u00a0Lewis also noted how \u201cespionage, foreign interference, cyber and malicious insider-related activities\u201d continue to threaten the national security of Australia.With respect to cyber espionage, the Australian Cyber Security Center (ACSC) has \u201cregularly observed\u201d activity targeting the networks of the Australian government.And just a few days ago, Australia\u2019s minister for defense industry, Christopher Pyne, confirmed in a Reuters article that 30 gigabytes of data was stolen from a defense contractor involved in the F-35 strike fighter program and the P-8 Poseidon surveillance plane. An Australian defense spokesperson said \u201cno classified\u201d information was compromised.What China does vs. what China saysAccording to the South China Morning Post, the hack was conducted by an entity using a tool called \u201cChina Chopper.\u201d This tool is widely used by Chinese actors. Sadly, the Chinese didn\u2019t need much acumen in this instance, as it was revealed that many of the services compromised still had default passwords and user-ids.While ASIO stepped over naming names in the annual report, one needs only go back a few months when Australia\u2019s most senior defense department official, Dennis Richardson, admonished in a Reuters article, \u201cIt is no secret that China is very active in intelligence activities directed against us. It is more than cyber.\u201dMoving forward to this week, on Oct. 18, China\u2019s President Xi Jinping spoke for 3.5 hours at the 19th Communist Party of China\u2019s National Congress on the state of affairs in China and to lay a few markers on the table around the country\u2019s armed forces, ecological progress, law, openness and diplomacy. Of particular note, especially in light of the complete 180-degree contrast between what China says and what China does, are his comments surrounding openness and diplomacy.With respect to openness, Xi emphasized how China will not close its door to the world, and it will become more open. In addition, steps will be taken to ease access to China\u2019s markets and protect foreign investors. Concerning diplomacy, he commented how China would never pursue development at the expense of others\u2019 interests and how China\u2019s development does not pose a threat to any nation. He continued, saying China is actively pursuing global partnerships and convergence of interests with other countries.Cyber threats posed by ChinaWhile China is speaking of openness and transparent relations, which will not pose a threat to any nation, the Sydney Morning Herald\u2019s recent three-part expose on \u201cChina\u2019s Operation Australia\u201d paints a much more ominous picture. Indeed, the expose calls out the Chinese Communist Part for waging a covert campaign of influence in China. The expose further says China was working to infiltrate the political parties of Australia, and \u201cASIO feared the campaign was succeeding.\u201dAnd that is just Australia. Couple this with the earlier call by German intelligence entities warning of the threat posed by China and Cyberscoop\u2019s reporting on how the hacker group APT10, or MenuPass Group, continues to target entities in the U.S., EU and Japan in support of China\u2019s national security goals. And then there\u2019s the report from SecureWorks, describing how the \u201cBronze Butler\u201d group conducted operations on behalf of China to infiltrate Japanese organizations for the purpose of exfiltrating intellectual property and confidential data. The group\u2019s focus was on \u201cnetworks involved in critical infrastructure, heavy industry, manufacturing and international relations.\u201dWhile China is calling for regional stability and harmony, their actions remind companies and governments to keep their hand on both their wallet and their intellectual property.