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US staring down a cyber cold war with China?

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    KT McFarland weighs in on threat

  • Duration 3:38
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It's -- story and -- new evidence that links China to cyber attacks here in the United States.

A new study suggests that 16% of cyber traffic originates from China surprise surprise right.

More than any other country in the world they present this that.

Since 2006.

More than eight out of every ten attacks and -- -- Chinese cyber attack group were directed at the United States and in terms of the cost.

One company last technology worth a billion dollars to this kind of espionage.

That took twenty years to develop that technology originally says America looking at a news cybercrime this Cold War.

KT McFarland is a Fox News national security analyst of course and she's former deputy assistant secretary of defense.

And the Reagan administration Katie good morning good to -- here.

You know it's striking sort of -- How the administration's approach in this according to this this report that we have this morning then because all of it links back to this this one building building.

You know -- we look at all of these addresses that they found in an actress'.

And they didn't say that they does it all goes back to to this one building that's a Chinese military facility.

Why.

Well I think for a couple of reasons -- that we've just caught the Chinese red handed.

And the problem is we haven't really done anything about it for years we've known this is going -- You know you can say about just a little harmless Internet snooping right now.

He should be terrified they're doing three things one they're -- on our military technology fine -- during the same thing to them.

But what -- would.

They're doing that we're not doing their stealing our defense industry's technology in other words spend tens about.

The billions of dollars to develop a new stealth fighter what -- they do about -- they steal all that intellectual property build their own weapons system.

We don't do that to their industries we're not sniping on the Chinese version of Apple Computer.

But finally -- the third thing that terrifies me the most is they are hacking into our critical infrastructure.

They're hacking into our power grid -- water supply system our financial institutions.

They could if they HL as they could potentially just bring American society to a halt within a matter of hours and we have no protection.

And it you think about it and and it doesn't feel like the threat of a nuclear Cold War which it has so many of us grew up under right.

But in many ways it is I mean think about what -- what happened to the East Coast during hurricane sandy -- -- no power.

No ability to get around no ability to get gasoline no ability to get into your bank -- -- And you multiply that across large sections of the country that is a terrifying prospect.

It is a terrifying prospect -- they wouldn't even need to do they could just threaten to do it.

-- and that I think is where we really -- are wrong to just ignore it.

Now why are we aren't -- well maybe we're ignoring it because we have to borrow money from China.

I think what the United States needs to do right now is a couple of things.

We can't defend ourselves against this right takes cyber technology put all those computer nerds to work at defending the United States from cyber attack.

But I think what we need -- some leverage over the Chinese.

What are they what are they terrified -- -- terrified to not have access to energy.

Well if you -- -- -- our energy resources are oil particularly that's something we could hold over them.

The other thing they're terrified.

Is it Internet technology -- -- society.

Creating political instability and well why don't we send some of our techie experts to figure out how to open up the Internet to China you know that's all those thousands of Chinese students to come to America to study they immediately get FaceBook account right -- Chat with Air France who live like normal American college age kids safe -- to China -- FaceBook.

Well why don't we let them have bad and see what that kind of a threat presents to China only allowed them only allowed in this regard thank you so much -- -- --

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