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“Hostile acts may include significant cyberattacks directed against the U.S. economy, government or military. As directed by the president, response options may include using cyber and/or kinetic capabilities provided by DoD.”

The Pentagon is working to bolster intelligence gathering and other efforts to improve the ability to trace the origin of attacks, the report says.

“This research focuses on two primary areas: developing new ways to trace the physical source of an attack, and seeking to assess the identity of the attacker via behavior-based algorithms,” the report says, noting that new methods are set to be used on defense networks in the near future to detect, track and report malicious computer activities.

MORE ON GE-AVIC

Rep. Frank R. Wolf, Virginia Republican, is the second senior House Republican to write Defense Secretary Leon E. Panetta to request a formal national security review of the joint venture between General Electric and state-run Aviation Industry Corp. of China.

“This partnership is troubling for a number of reasons, especially given the increasingly aggressive posture of the People’s Liberation Army (PLA), the rapid advances in Chinese aeronautics and space programs, and the unprecedented Chinese threat from cyberattacks and espionage,” Mr. Wolf, chairman of the subcommittee that funds the FBI, stated in the Nov. 14 letter.

He warned that efforts to jointly develop avionics technology with China “could provide the Chinese with years, if not decades, worth of U.S. avionics technology that will fuel their aeronautics capabilities, potentially at great expense to our national and economic security.”

Mr. Wolf said that the widespread scale of Chinese espionage has called into question assurances from GE officials that sensitive U.S. technology will not be compromised in the venture.

“Should the GE-AVIC joint venture proceed, there is no question that all of the sensitive technology involved will be compromised by the PLA” as China’s military is known, he said.

The annual U.S.-China Economic and Security Review Commission report, made public Wednesday, also questioned the security implications for the GE-AVIC deal.

“Members of Congress raised concerns that AVIC could divert U.S. commercial avionics technology to China’s military systems, as China has done with missile, jet, and satellite know-how,” the report said.

The commission report said GE described its Chinese partner as having “developed strong capabilities to supply avionics products to various models of aircraft, both for military and civil use.”

LEVIN RESPONDS

When The Washington Times reported Nov. 3 that Senate Armed Services Chairman Sen. Carl M. Levin, Michigan Democrat, was intervening in a completed Pentagon inspector general report, his office had no comment.

But Fox News was able to get a statement.

Story Continues →