The U.S. Treasury Department has imposed sanctions on the Beijing-based Integrity Technology Group due to its connections with the Flax Typhoon hacking group, which is believed to be involved in recent cyberattacks against U.S. government systems. The sanctions follow accusations that Chinese hackers breached Treasury Department computers, compromising sensitive documents. Treasury Secretary Janet Yellen has warned that these incidents threaten 'absolute trust and credit' in the U.S. financial system. The breach has raised concerns about China's capabilities, with reports suggesting that hackers may have gained access to critical U.S. infrastructure, including ports and power grids. Experts emphasize the severity of the situation, indicating that the U.S. is now engaged in a cybersecurity arms race with China.