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Chinese military behind hack attack?

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    Gordon Chang on the recent cyber attacks from China

  • Duration 5:24
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Is this cyber security firm Manny and Brad -- talking about this something -- you have told them many times befall.

This is happening there's no doubt about it in your mind that did that Chinese Government.

Through the army whichever -- whichever wing of the government would document is involved in these major attacks against the United States.

It's the Chinese military has been doing this for more than a decade but is not just the military is also the Communist Party.

Government ministries like the minister of state security Chinese Government enterprises as well as anonymous hacker groups but they're all working more -- -- in coordination under the direction of the Chinese Government.

He -- that because China has the great firewall which means you cannot touch a keyboard and big in China without somebody in Beijing knowing about it so Tressel -- leave early and you know clearly the Chinese Government either knows about this directing it or is complicit.

They're just no other alternatives.

Why and there did the simple name.

Would be to get information get -- essentially it's -- -- its modern day -- Well it's modern day spying but it's also the ability to take down American networks Katherine was talking about the Federal Reserve.

Imagine if the Federal Reserve was effectively hacked you could lose trillions of dollars in assets.

Like that from and we'd have to call that if what if that would ever happen an active role.

Well it is -- been there have been so many act of -- as they occur every day as what the Chinese have been doing the great 2003 blackout in the northeast.

Many people suspect that a Chinese hacker hit the wrong key and -- -- cause that Kris.

Could say crusade of cascade of of blackouts.

Fifty Americans died during that so we got to remember that this is not just a question of information or attacking defense networks we're -- talking about the lives of Americans and so what do we do.

What -- the first thing is what we don't do you know we've been talking to the Chinese about this for very long time.

President Obama Defense Secretary Panetta lower -- administration officials in the first term -- talked about this.

But last year there was a dramatic spike in Chinese attacks the Chinese don't take us seriously and try to establish cooperative relations -- just laughing at us.

What we really need to do is hurt them where it where they're vulnerable and that's their fragile economy right now.

Lot of people say look you know why don't we have a cyber attack against them and although that is emotionally satisfying and there's a symmetry to it and probably would be effective.

We would be disclosing our capabilities and we don't want to do that.

But we can hurt them though in a way that they probably will back golf which means we're doing -- precisely how do we -- economy if we want to.

-- they got an economy that is completely dependent on selling things to us last year China's merchandise trade surplus against the US was at least a 136 point 3% of their overall surplus.

So you know all we have to do is start inspecting goods that come into the Port of Long Beach you know the container ships are going to be backed up halfway across the Pacific.

While we go through the packages the Chinese would get the message and I think that they would back off but the one probably got to remember right now is to militant nationalism in Beijing.

Into the country there's going off the rails.

You have the civilian leaders talking war you have the generals and admirals in gotten engaging in these very provocative.

Tactics against the Japanese and against others -- the military breaking free of civilian control you can't talk to these people right now.

And that means we got to raise the cost.

There are cyber attacks and why -- why are they going off around trying to what's what's happening this is this a hole about -- -- How about we'll -- -- combination of things that are current first of all the Chinese feel pretty arrogant because we've been telling them that they own the decade and indeed the -- And so they believe a century owners that they can do what they want.

You know because their car obviously believe in -- that their destiny.

There also I think very fragile right now and because of that they're also insecure you -- this political transition that is going on which is really rocked the Communist Party.

-- the military becoming involved in politics is about 2003.

Which means that they're getting more power within the Chinese political system.

And because there cohesive faction may very well may be the most powerful group in China today and so you have a lot of bad things occur in all -- the same time.

And that's why China is doing not only cyber attacks but you know they're attacking Japan they took a Scholl from the Philippines last year from.

Literally all sorts of things to try to undermine free society's current.

Gary Collins writes in on on your point of whether we.

Back as it were those who wish to do -- -- Gary says.

By force all financially have no issues with putting us in the dark ages yet we have two high ethics to do the same to them.

But you you would agree.

That wins that the current position of the -- has which is obviously not a -- back then that's the right thing to do because you give away too much by a showing a hand this early.

Right I mean if if it really got down to a conflict situation we would want our cyber intrusions are cyber attacks to be -- Maximum effective and we just don't want -- -- the Chinese know.

And this this is not the only way that we can get back at them so.

Yes I would like to do that in a sense because it is mostly satisfied I just don't think it's the right thing for us to do -- this particular time.

All right -- great to get your perspective as always -- obviously Asia expert and -- of nuclear showdown.

North Korea takes on the world could see -- thank you very much for being here as always.

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