Yikes!

December 4, 2006: For the third time in five months, Chinese based hackers attacked a Department of Defense computer network. In mid-November, the U.S. Navy's War College had to shut down it's computer network because, as one instructor explained to his class, Chinese hackers had gotten in, and the Naval War College servers had to be scrutinized to see what was taken, changed or left behind. The is the latest of several attacks on Department of Defense computers, that could be traced back to China.

via-strategypage