US House panel simulates Taiwan crisis with AI-enabled Chinese cyberattacks on logistics

Members and staff from the House Homeland Security Committee and the House China Select Committee participated in a simulated Taiwan crisis on Tuesday, testing how U.S. officials might respond to AI-backed cyberattacks targeting transportation and logistics networks essential for deploying American forces.

The Center for Strategic and International Studies (CSIS) hosted the event to provide lawmakers with insight into the trade-offs and uncertainties that would shape the U.S. response to a fast-moving conflict involving China and its implications for American cyberspace.

Participants

• Republicans: Rep. Eli Crane (Arizona), Rep. Michael Guest (Mississippi), Rep. Michael McCaul (Texas)
• Democrats: Rep. Shri Thanedar (Michigan), Puerto Rico Resident Commissioner Pablo José Hernández

Scenario Overview

According to a readout provided to reporters just before the simulation began:

• The scenario starts with China launching a massive military exercise around Taiwan in the summer of 2027.
• U.S. officials are uncertain whether Beijing is being coercive, imposing a de facto blockade, or preparing for a full invasion of the island.
• Beijing avoids using the term "blockade," but its moves effectively quarantine Taiwan.

Lawmakers were informed that U.S. intelligence analysts suspect Chinese hackers had begun targeting:

• Ports
• Freight rail systems
• Airports
• Other transportation networks used to move U.S. forces and supplies

Some attacks cause immediate disruptions, while others appear designed to preserve access that could be leveraged later.

Key Decisions Facing Participants

Lawmakers had to determine:

• Which networks to defend first
• How closely to coordinate with private-sector critical infrastructure operators
• Whether moving U.S. forces would deter China or further escalate the crisis

AI-Related Attack Scenarios

The exercise included several AI-enabled attacks:

• Stolen credentials
• Interference with logistics and routing systems
• A misinformation campaign using AI
• A prompt injection attack, where attackers attempt to trick an AI system into following malicious instructions instead of its intended safeguards

Lawmaker Remarks

Rep. Michael McCaul stated: "Cyber is always going to be a leader in any kinetic war."

He also noted: "This committee has been briefed extensively on our latest AI capabilities, Anthropic in particular, the Mythos model, and the amount of destruction that Mythos can do if it's in the wrong hands. And we know China is three to five months behind us. That's not very long, in my judgment."

Broader Context

Current and former officials have long warned that China could disrupt U.S. military deployments by digitally sabotaging the largely private-sector ports, railways, airports, and other infrastructure used to move troops and equipment overseas. Advanced AI tools can help hackers work faster, automate more parts of an attack, and target more systems simultaneously.

The war game scenario mirrors longstanding concerns surrounding Volt Typhoon, a Chinese government-backed hacking group that U.S. officials say has spent years quietly infiltrating American critical infrastructure. The hackers are believed to be positioning themselves inside sectors such as communications, energy, transportation, and water systems to disrupt them during a future conflict, including one over Taiwan.

Background on Taiwan

China claims Taiwan as part of its territory and seeks to bring the self-governing island under Beijing's control. Taiwan's major role in producing advanced computer chips makes it strategically important to both China and the United States.

U.S. spy agencies assessed earlier this year that China is not planning to invade Taiwan.