US Homes In on China Spying

US intelligence agencies have pinpointed many of the Chinese groups responsible for cyberspying in the U.S., and most are sponsored by the Chinese military, according to people who have been briefed on the investigation.

Armed with this information, the U.S. has begun to lay the groundwork to confront China more directly about cyberspying. Two weeks ago, U.S. officials met with Chinese counterparts and warned China about the diplomatic consequences of economic spying, according to one person familiar with the meeting. The Chinese cyberspying campaign stems largely from a dozen groups connected to China's People's Liberation Army and a half-dozen nonmilitary groups connected to organizations like universities, said those who were briefed on the investigation. Two other groups play a significant role, though investigators haven't determined whether they are connected to the military. In many cases, the National Security Agency has determined the identities of individuals working in these groups, which is a critical development that provides the U.S. the option of confronting the Chinese government more directly about the activity or responding with a counterattack, according to former officials briefed on the effort.