The US Administration is not backing down from serious talk about retaliation for Chinese cyber espionage—trade sanctions are mooted in the White House (with substantial Congressional support) and stalking horses like Michael Hayden use very strong language indeed about China.
The Chinese government continues to deny any involvement in recent exploits. Press outlet Xinhuanet advances one creative theory: maybe the People's Liberation Army was the victim of a botnet that just happened to be around Shanghai. After all, Mandiant's attribution was "circumstantial," and, hey, it could happen.
Iran's press sympathizes with China, saying the US has declared cyber war against China, Russia, and Iran. The Anonymous connection to Mandiant's investigation becomes clearer today—notorious snitch Sabu may have been a source. Mississippi State students hone cyber skills by reverse engineering Chinese malware.
The waterholing attack Apple disclosed this week may (or may already have) spread beyond Apple via mobile developer site iPhoneDevSDK.
Adobe's Acrobat Reader patch is out.
Electrical utilities in Florida and New York recover from breaches of email and billing systems. Industry analysts think Facebook's recent security problems endanger its business model.
US Federal budget sequestration will hit in a week, with effects expected to reach the UK and NATO as well. The Defense Department and the Intelligence Community (accused by Republicans of firemen-first brinksmanship) prepare for employee furloughs that may cause a cyber-talent hemorrhage.
The US Department of Energy sponsors smart grid security R&D; the Pentagon will impose security standards on the utilities it uses.