US works on cybertheft penalties after China claim

Washington, Feb 20 (AP) Evidence of an unrelenting campaign of cyberstealing linked to the Chinese government is prompting the Obama administration to develop more aggressive responses to the theft of US government data and corporate trade secrets. A report being released today considers fines and other trade actions against China or any other country guilty of cyber-espionage. Officials familiar with the administration's plans spoke on condition of anonymity because they were not authorised to speak publicly about the threatened action. The Chinese government denies being involved in the cyberattacks cited in a cybersecurity firm's analysis of breaches that compromised more than 140 companies. Today, China's Defense Ministry called the report deeply flawed. Mandiant, a cybersecurity firm, released a torrent of details Monday that tied a secret Chinese military unit in Shanghai to years of cyberattacks against U.S. Companies. Mandiant concluded that the breaches can be linked to the People's Liberation Army's Unit 61398. Military experts believe the unit is part of the People's Liberation Army's cybercommand, which is under the direct authority of the General Staff Department, China's version of the Joint Chiefs of Staff. As such, its activities would be likely to be authorised at the highest levels of China's military. (AP) ASY 02202041 NNNN