New reports tonight say the Obama administration is formulating a proper response.
US ready to strike back against China cyberattacks
Start by enforcing our trade rules. No more dumping of Chinese products below cost in order to drive US manufacturers out of business. No more currency manipulation (which accounts for a huge percentage of the growth of Chinese business over the past couple of decades). Require all their products to be tested for contamination (heavy metals in jewelry, juice products, etc).
Simply insist that they follow the same rules as everyone else. And in direct retaliation for their conspiracy, demand that the government shut down every one of the facilities involved in these thefts. If the government refuses to cooperate, start adding 1% tariffs to every imported Chinese product with the amount increasing by 1% per month until they comply.
It would either fix the problem or do wonders for our budget deficit. Either way, we win.