Chinese IT Manager Arrested in Italy Over Alleged U.S. Cyber-Espionage Ties

A Chinese national accused of state-sponsored cyber-espionage has been arrested in Italy at the request of the U.S. Department of Justice (DOJ). Xu Zewei, a 33-year-old IT manager from Shanghai, was detained on July 3 at Milan’s Malpensa airport during a vacation with his wife. U.S. prosecutors allege Xu was involved in a series of cyber intrusions between February 2020 and June 2021, including attempts to steal COVID-19 vaccine research from the University of Texas and exploit Microsoft email software vulnerabilities.

According to the DOJ, Xu was part of a hacking group known as Hafnium, which has alleged ties to China’s Ministry of State Security. The group is accused of targeting over 60,000 U.S. entities and leveraging zero-day vulnerabilities to steal sensitive research data. A nine-count indictment unsealed in the Southern District of Texas charges Xu and a co-defendant with wire fraud, aggravated identity theft, and unauthorized access to protected systems.

Chinese officials deny any involvement, with embassy spokesperson Liu Pengyu stating that China opposes all forms of cybercrime and has no need to steal vaccine data. Xu’s defense argues he is a victim of mistaken identity, citing his common surname and a mobile phone theft in 2020 as potential sources of confusion.

Xu appeared before a Milan appeals court, which will determine whether he will be extradited to the United States. The case adds fresh tension to U.S.-China cyber relations, as Washington continues to pursue alleged state-sponsored cyber actors linked to intellectual property theft and espionage. The DOJ maintains that the arrest underscores ongoing efforts to protect U.S. innovation and public health data from foreign threats.