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Hackers from China increasingly targeting U.S military computers and defense contractors.

According to a leaked draft of a Congressional report, China poses the largest threat in cyberspace, with hackers continuously targeting U.S military computers and defense contractors.

The report obtained by Bloomberg, which was produced by the U.S.- China Economic and Security Review Commission, found that China's advances in its hacking activities over the past year pose a considerable threat to information systems and users.

Attempts by Chinese hackers apparently includes blinding or disrupting U.S. intelligence and communications satellites, weapons targeting systems, as well as navigation computers, so says an anonymous U.S. intelligence official.

Although the attacks are essentially through basic techniques, the volume of the activity is what poses a threat to the United States. Intrusions are predominately designed to collect information as opposed to attacking systems.

Scheduled for a release on November 14, the report urges Congress to develop methods of punishing and penalizing firms who have been found to have engaged in industrial espionage.