Commentary from al-Beeb:
China's government and military have targeted US government computers as part of a cyber espionage campaign, a US report on China says ...
Well, yes. Many governments have electronic espionage programs - the US even admit it. But the Chinese, for some reason, seem to resent being called out on what they actually admit to doing in their military doctrine.
China called the report "groundless", saying it represented "US distrust".
A report from state news agency Xinhua cited Sr Col Wang Xinjun, a People's Liberation Army (PLA) researcher, describing the report as "irresponsible and harmful to the mutual trust between the two countries".
What "mutual trust"? Seriously?
Both China and the US were victims of cybercrimes and should work together to tackle the problems, the agency quoted him as saying.
Deliberate, even malicious red herring (or red snapper, if that's the Oriental equivalent :) ). Organised government intelligence operations and cybercrime are completely different things (even if they might look similar on a tcpdump.)