China strengthens cyber war arsenal against United States.

The report claims that China is building and strengthening its cyber warfare capabilities to collect intelligence from the United States through sophisticated remote hacking techniques. Despite little evidence to support such claim, the panel discovered that cyber attacks against U.S. companies several years ago had originated from Chinese shores.

A victim of such attacks noticed that over several days, data from their network was being sent to multiple computers in the U.S. and overseas. While the panel report does not identify the company, it suggested that the attackers targeted specific data -giving rise to the conclusion that a very coordinated and sophisticated operation had taken place, probably executed by people who had the expertise to use the high-tech information through an Internet protocol (IP) address located in China.

However, the Pentagon remains unsure if the cyber attacks were endorsed by the Chinese government or were they simply actions of a malicious group of hackers.

"It remains unclear if these intrusions were conducted by, or with the endorsement of, the PLA or other elements of the PRC (People's Republic of China) government," the Pentagon says.

The panel's report, by large, has prompted the Pentagon to expand its annual China military power review. The Defense study said earlier this year that China's People's Liberation Army has set up information warfare units to develop viruses to attack enemy computer systems and networks as well as to protect friendly systems.