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Welcome everybody I'm Neil Cavuto -- Halloween might still be thirty days away but this is scary today.
Chinese hackers breaching a White House computer.
No harm done the White House says that no classified information compromised it insists we're gonna have a lot more on all of this -- Ed Henry at the White House but the very fact.
The Chinese hackers got as far as they did has a security experts worried make that very worried for two years now.
It has been an open secret that side has been.
-- as they call it US corporate secrets security types and noting this takes it to a whole new level and to get a much more worrisome level.
Gordon Chang is an expert on all things -- -- says this latest attack.
Doesn't only prove how brazen the Chinese are but -- on prepared we are.
Good to see you my friend -- You know.
Packing your computer and it isn't rocket science getting to the level White House.
Is -- Yes and also they went into the White House military office that is the one responsible for keeping.
America's new -- launch codes you know they could compromise those we do you know real world of hurt.
But you know you're right may have gotten so far.
And part of the reason is because attackers normally have an advantage and that's true for cyber attackers as well.
But there's another element to this and that is for years we have been afraid to acknowledge that the Chinese have been -- you know an unprecedented series of tax.
Not only for espionage but also to try all sorts of other things.
And you know if we're not willing to have those honest conversations with the Chinese and with ourselves then of course we can't do very much to protect American network.
X boots I'm afraid that China is right I mean they -- so much of our debt a lot of companies want to make sure they stay on the good side -- standing.
So we just turn the other cheek -- what.
Well we can't because you know this is not gotten as you say to a whole new level what made this worries -- -- -- Well is because of the -- -- launch codes it is because this is the president -- the president's travel arrangements.
His communications when he's on Air Force One this is the office that is responsible for making sure he stays in touch with the American military and that means our security.
Now a lot of security experts also -- -- Gordon.
They -- that's what they did -- what this is packed into it without necessarily disrupting in another words without getting codes without getting the president schedule.
Just enough to like if someone sent you.
A virus played email you you touch it and open it your computer goes down.
Yeah a -- bad you know.
That's what they think today but they really won't know for quite some time if ever how far the Chinese really gotten.
Because the Chinese have shown in other attacks that they have been able to get in and out and not be detected for quite some time now.
You mentioned brazen before you mentioned that there's there could be a methods of this would seems to be espionage madness.
In that there they -- in trouble they're trying to itself is in trouble what I mean.
-- the country's going off the rails if you look at electricity production statistics manufacturing surveys price indices you see an economy that is growing at one or 2%.
Maybe even zero certainly not the seven point 6% of Beijing claims.
You have a political transition that is obviously good real trouble with all of the intense infighting you of the military breaking free of civilian control and you've got -- -- You're saying the growth is a lot less than we're being -- Much less so what are you -- I think that it's about zero you know it's maybe one -- negative one I mean this is the world's economic tiger.
Well it used to be a world economic tiger but now it has a growth model that is really incompatible with today's global environment.
And so therefore -- you know this export led investment -- model isn't working they didn't make the change to consumption five years ago when they -- really started it.
And then now they can't do it because the economy is in such -- -- -- desperate times call firm.
More bellicose behavior well I think what the party has been doing it's been trying to distract Chinese people from what's been going on first two weeks of this month.
Siege and paying the next leader China goes missing from public state media is entirely quiet.
But at the same time state media ramps up the propaganda against Japan with regard to these islands that have been -- you just -- To deflected attention of the Chinese people.
Because this is a political organization that's primary basis of legitimacy has been the continual delivery -- prosperity.
When it can't deliver prosperity it falls back on nationalism -- nationalism -- brings -- into conflict with countries in the region and also with the United States because many of those countries are our treaty allies and many of the rest of them are our friends.
But what you're saying and I tickets and -- -- the letters -- -- -- but if the emperor has no clothes.
He gets very desperate.
-- get very desperate you know we've seen this before in in history of other countries but also including China.
And right now there are a lot of things that are just going in the wrong direction and we're not really trying to had knowledge that we're not acknowledging that.
And therefore we're creating the conditions were this could get worse OK Gordon thank you I think.
Gordon Chang the expert on China warned to battle this moment.
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