An anonymous reader writes "A new report published by The US-China Economic and Security Review Commission wags a finger at the People's Republic of China for conducting Internet-borne espionage operations against United States high-tech companies. The paper, written by defense giant Northrop Grumman, provides a detailed case study of one such intrusion that moved large volumes of sensitive tech data out of a US firm in 2007. From a Wall Street Journal article, '"The case study is absolutely clearly controlled and directed with a specific purpose to get at defense technology in a related group of companies," said Larry Wortzel, vice chairman of the commission and a former U.S. Army attaché in China. "There's no doubt that that's state-controlled."' Wang Baodong, a spokesman for the Chinese Embassy in Washington, criticized the commission as "a product of Cold War mentality" that was "put in place to pick China to pieces." He added: "Accusations of China conducting, or 'likely conducting' as the commission's report indicates, cyberspace attacks or espionage against the US are unfounded and unwarranted.'"