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China officials would probably deny that it was them if the US publicly accused them, saying it was some isolated hacker acting on its own, or maybe a foreign country routing its traffic through a VPN in China, AND they would point out that the US is doing exactly the same in China and elsewhere (Stuxnet, etc...).

yeah just like when it came out that the NSA was reading the emails of Germany's prime minister.

What can they do? This certainly isn't something worth going to war over. Economic sanctions would just hurt everybody. What else?