On the security issue, the FBI report you mentioned (via the Daily Beast article)is interesting for more than just Chinese capabilities, I think. I quote the article here:

“Cyber warfare is part of every developed country’s 21st century arsenal. Although no U.S. official will admit it, the Pentagon, CIA, and NSA regularly probe and try to hack into China’s military and industrial computer networks to obtain the information that years ago were brought back by the James Bonds of spy services. The U.S., and many of our European allies, try to find ways to wreck some havoc in the Chinese computer grid if a conflict ever takes place. The difference is that the Chinese are better than anyone else and lead the way in technological breakthroughs for the cyber battlefield.”

While I understand that, naturally, Chinese capabilities are a concern, I think the attention needs to be directed farther and deeper in the line of causality. The real problem is that cyberwarfare is a totally unregulated, socially young field. Where physical warfare has all sorts of repercussions in international norms and laws, cyberwarfare is being fought by the world’s most powerful countries — in broad daylight — without many voices yelling “stop!”

If the US wants to undercut Chinese — or any other country’s — efforts to infiltrate or otherwise harm US cyber-assets, then the US ought to be looking into making this field much more transparent and regulated, in terms of international relations.

If attacks can be traced back to origins, then that is a start. This creates evidence. All you need is the law and this can become an international precedent to regulate future circumstances.

Physical wars used to be fought daily or annually by kingdoms and daimyo. This is unthinkable today. Yet the cyberworld has seemed to turn back time.