Code Red: Breaking Down China’s Cyber Offensive—Volt, Salt, and Flax Typhoon

China is already inside U.S. systems. That’s the message from the McCrary Institute’s latest report—and this Cyber Focus episode breaks it down. From Volt Typhoon to Salt and Flax, these cyber campaigns aren’t isolated attacks. They’re part of a coordinated strategy by the Chinese Communist Party to prepare the battlefield, exploit infrastructure gaps, and undermine U.S. resilience before a conflict even begins. Host Frank Cilluffo sits down with RADM Mark Montgomery (Ret.), Brad Medairy, and Bill Evanina—co-chairs of the report—to explain what China’s targeting, why they want us to know they’re there, and how the U.S. can push back. They also tackle deterrence failure, why AI is accelerating the threat, and what needs to change before it’s too late. Relevant Links and Resources • McCrary Institute Typhoon Report: https://mccraryinstitute.com/code-red-a-guide-to-understanding-chinas-sophisticated-typhoon-cyber-campaigns/ • Booz Allen October 2025 China report: https://www.boozallen.com/insights/cyber/predict-prevent-and-prevail-over-the-prc-cyber-threat.html 00:00 Introduction & the Strategic Context 01:43 China’s Evolving Cyber Strategy 05:30 Public Awareness and Escalation Risks 07:25 Volt Typhoon: Preparing the Battlefield 12:46 Salt Typhoon: Telecom Espionage at Scale 18:15 Flax Typhoon: Persistence Inside U.S. Systems 21:05 Why China Wants to Be Caught 23:08 Future of Warfare & AI Acceleration 24:27 Cyber Deterrence Failure & Double Standards 29:12 When Public Impact Drives Policy 32:04 Will Cyber Be on the Diplomatic Agenda? 34:29 Monetizing the Cost of Espionage 38:03 2027–2030: Hardening U.S. Defenses 43:15 Final Thoughts & Call to Action