ZDnet and Rueters are reporting that:
Web sites in China are being used as a staging ground for organized attacks on computer networks in the U.S. Defense Department and other agencies.
Source
The newspaper cited four government officials who spoke separately about the intrusions, which were said to go back two or three years.
The report said U.S. analysts were divided over whether the attacks were a coordinated effort by the Chinese government to penetrate U.S. government
databanks or whether it was the work of other hackers using Chinese networks to hide the origin of the intrusions.

I find it amazing that this is not more widely reported.