China, Inside The Wire: Part V

China, Inside the Wire — The Last Word: Resilience at Scale

The 90-Day, 1-Year, and 3-Year Playbook

The Daily Raptor | Strategic Intelligence Series | Part 5 of 5
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Thursday, August 14, 2025 Edition

Last week, we walked you through the nightmare — 72 hours of cascading infrastructure failure as China activates years of patient pre-positioning. We showed you how power grids tear themselves apart, financial systems lose transaction integrity, and psychological operations turn uncertainty into societal collapse. We demonstrated the Recovery Gap, where circular dependencies make restoration exponentially harder than destruction. If Part 4 left you with a knot in your stomach, good — that's your survival instinct recognizing an existential threat. But awareness without action is just sophisticated panic. Today, we transform that recognition into resilience. This final installment provides what you need most: a practical, time-phased mobilization plan that acknowledges a fundamental truth — you're already compromised, but you're not powerless. The playbook starts now.

This Week's Intelligence Update

FLASH: CISA Advisory AA24-038A confirms Volt Typhoon actors have maintained persistent access within some victim IT environments "for at least five years." The threat group has successfully compromised organizations across communications, energy, transportation, and water/wastewater sectors. U.S. agencies assess "with high confidence that Volt Typhoon actors are pre-positioning themselves on IT networks to enable lateral movement to OT assets to disrupt functions."

KEY DEVELOPMENT: This last year marked major PLA restructuring—the Strategic Support Force disbanded and replaced by three new forces: the Information Support Force, Cyberspace Force, and Aerospace Force. This reorganization creates direct Central Military Commission control over cyber, space, and information warfare capabilities, eliminating bureaucratic layers. The new structure signals China's prioritization of "informatized warfare" and network-centric operations targeting the infrastructure interdependencies identified in our Part 4 analysis.

The Paradigm Shift: Assume Breach, Ensure Continuity

Old Thinking (Pre-2025)

  • "Keep them out" mentality

  • Perimeter-focused defense

  • Compliance-driven security

  • Incident response as exception

New Reality (2025-2030)

  • "Operate while compromised" mindset

  • Zero Trust architecture

  • Resilience-driven security

  • Continuous incident response

  • OT/IT convergence protection

  • Supply chain verification at every tier

Core Principle: Your organization must function even with adversaries inside your networks. Every system, process, and decision must account for this reality.

The 90-Day Sprint: Tactical Assessment and Quick Wins

Week 1-2: Rapid Threat Assessment

Hunt for Volt (Salt etc) Typhoon indicators using CISA guidance AA24-038A. Search for:

  • Living-off-the-land techniques (LOLBins usage)

  • Unusual PowerShell/WMI activity

  • Modified scheduled tasks

  • Anomalous east-west traffic patterns

  • Unexplained service account usage

Map critical dependencies between IT, OT, and third-party systems. Identify your crown jewels—systems whose compromise would halt operations.

Week 3-4: Emergency Patching and Segmentation

Priority Patches:

  • CVE-2024-21762 - Critical vulnerability actively exploited

  • CVE-2023-3519 - Remote code execution in network appliances

  • CVE-2023-20887 - Authentication bypass in virtualization

  • ProxyNotShell variants - Email server vulnerabilities

  • VPN platforms - Multiple vendors under active targeting

Network Segmentation Quick Wins:

  • Isolate OT from IT networks completely

  • Deploy out-of-band management networks

  • Create isolated recovery environments

Week 5-8: Supply Chain Emergency Audit

Vendor Risk Triage Framework:

Vendor Risk Categories

CRITICAL — Direct access to production systems
HIGH — Access to sensitive data/code
MEDIUM — Business process dependencies
LOW — Commodity services

Critical Vendor Assessment Checklist

For all CRITICAL tier vendors, verify:

No foreign/PRC ownership or investment
No development centers in China
Third-party dependencies documented
Additional monitoring deployed
Alternative suppliers identified

Emergency Action: Complete CRITICAL vendor assessments within 72 hours

Week 9-12: Crisis Preparation and Testing

Run These Tabletop Exercises:

  1. Hour Zero: Complete loss of Active Directory

  2. The Island Test: Operating without internet for 72 hours

  3. Supply Chain Surprise: Primary vendor compromised

  4. The Escalation: Cyber attack during kinetic conflict

Establish Crisis Communications:

  • Out-of-band channels ready

  • Executive decision trees documented

  • Media response templates prepared

  • Customer communication plans validated

The 1-Year Strategy: Critical Milestones

Q1 2026: Zero Trust Foundation

  • Deploy privileged access management (100% admin accounts)

  • Implement microsegmentation pilot for critical systems

  • Begin data classification and tagging

Q2 2026: Detection Revolution

  • Deploy AI-enhanced behavioral analytics

  • Achieve <1 hour mean time to detect

  • Implement deception technology in critical segments

Q3 2026: Supply Chain Hardening

  • SBOM generation for all software

  • Vendor incident notification <24 hours

  • Binary analysis for backdoor detection

Q4 2026: Organizational Transformation

  • Establish 24/7 fusion center (IT, OT, Physical Security coordinated)

  • Create dedicated supply chain security team

  • Embed security in all business decisions

Year-End Target: 4-hour recovery time for critical systems with offline backups

The 3-Year Vision: Resilience at Scale

2027 (PLA Target Year): Zero Trust fully deployed, AI-enhanced detection operational, supply chain transparency achieved

2028: Automated threat response, firmware integrity verification, integrated cyber-physical defense capability

2029: Industry-wide collective defense protocols, coordinated (sector-wide) incident response, shared deception networks

Note: While monitoring quantum computing developments, prioritize immediate operational threats through 2030.

Making the Case: Executive Communication

Board-Ready Budget Justification

The Risk: "Chinese cyber forces have pre-positioned for conflict. Volt Typhoon has been in critical infrastructure for 5+ years."

The Impact:

  • 72-hour operational disruption = $[X]M daily revenue loss

  • Recovery costs = $[Y]M

  • Customer loss = [Z]%

  • Total Risk Exposure = $[Calculate your number]

The Investment:

  • 90-Day Emergency: 0.5% of revenue

  • 1-Year Hardening: 2% of revenue

  • ROI: Every $1 spent = $[X] in prevented losses

The Differentiator: "Resilience is the new competitive advantage. Customers will choose providers who can operate through crisis."

Five Questions Every Vendor Must Answer

  1. ☐ Subject to PRC laws requiring active PRC/PLA/government cooperation?

  2. ☐ Can your solution operate completely air-gapped?

  3. ☐ Do you have mapped/documented supply chain?

  4. ☐ What's your recovery time if cloud providers fail?

  5. ☐ Can you provide detailed software bill of materials?

Red Flag = Immediate Disqualification: Any vendor who cannot provide security audit results or incident response plans.

Critical Actions by Region

Not All Infrastructure Is Equal: PLA Target Prioritization

The PLA doesn't view U.S. infrastructure uniformly. Western U.S. infrastructure (tech backbone, Pacific ports) ranks far higher than Southeastern assets in targeting priorities.

Tier 1 Immediate Action Required:

  • West Coast Corridor (Seattle → SF → LA): Tech infrastructure, submarine cables, ports

  • Texas Triangle (Houston → Dallas → Austin): Energy control, pipelines

  • Northeast Megalopolis (Boston → NYC → DC): Financial centers, government

Your Regional Action: If Tier 1, implement 90-day plan NOW. You're pre-compromised.

Sector-Specific Survival Priorities

Energy: Isolate OT completely, deploy OT-specific detection, establish manual overrides
Financial: Implement transaction integrity monitoring, create offline capability
Healthcare: Segment medical devices NOW, deploy paper-based fallbacks
Water: Air-gap SCADA, implement physical verification every hour
Telecom: Implement RPKI/DNSSEC, segment 5G control planes

Action Items for Your Organization

This Week (Immediate)

  1. Brief your board using this series

  2. Hunt for Volt Typhoon indicators

  3. Map critical dependencies

  4. Schedule crisis simulation within 30 days

This Month (30 Days)

  1. Complete 90-day assessment

  2. Secure emergency funding

  3. Implement network segmentation for crown jewels

  4. Deploy enhanced monitoring

This Quarter (90 Days)

  1. Complete tactical improvements

  2. Develop 1-year proposal

  3. Launch Zero Trust pilot

  4. Test crisis response

End of 2025 & 2026

  1. Achieve Zero Trust implementation

  2. Deploy AI-enhanced detection

  3. Establish 24/7 fusion center

  4. Complete supply chain hardening

The Choice Before Us

The intelligence is clear: Chinese cyber forces have pre-positioned for a conflict that could fundamentally disrupt American society. The timeline is compressed: 2027 represents a critical inflection point. The stakes are existential: failure to prepare guarantees catastrophic potential.

But this is not a story of inevitable defeat; this is a story about American resilience and technical prowess. Organizations that act now — that embrace the assume-breach mindset, invest in resilience, and transform their security postures — will not only survive but emerge as the trusted providers in a future operating environment of uncertainty.

The question is not whether the storm is coming — it's whether you'll be ready when it arrives.

Remember: In the coming conflict, there will be two types of organizations — those that prepared for operating while compromised, and those that became casualties of their own complacency.

Which will you be? That’s right, let’s go!

The Daily Raptor Team

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This concludes our five-part series "China, Inside the Wire." The threat is real, immediate, and potentially catastrophic. But with clear eyes, strong resolve, and immediate action, American organizations can build the resilience necessary to operate through the coming storm.

Resources & Next Steps

Appendix: Quick Reference Resources

Essential Reading

Critical Tools

Key Contacts

Continuous Updates

For ongoing intelligence updates and tactical guidance:

  • Subscribe to The Daily Raptor alerts

  • Join sector-specific threat briefings

  • Participate in regional cyber exercises

  • Engage with peer organizations