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Transcripts for CNN The Situation Room 20130601 22:31:00

defense industrial base, and a lot of the places are compromised over ten years. china s military ambition has been off the charts in recent years, they launched a satellite killer missile into space, just over the past two years, deployed the first aircraft carrier and test flown the first stealth fighter jet. one expert told me technology for that was taken from the u.s. china s alleged hacking could be deadly for u.s. forces on the battlefield. i asked one expert about publicly released part of the latest report on the consequences of cyber snatching of weapons technology. if you mess with that software, the airplane won t fly, missile will miss the target, the ship may not get where it was intended to go. reporter: china s embassy hasn t responded to calls about the latest report. china repeatedly insisted it doesn t conduct cyber espionage on u.s. agencies or companies. how can the u.s. stop this?

Transcripts for CNN The Situation Room 20130528 22:03:00

accused china trying to extract information from u.s. government computers, including military ones. if the chinese even got into parts of a combat or missile defense system, how could they have gotten past the safeguards? there s engineering done in a defense setting, at a base. a lot of these places have been compromised for years. reporter: they have been off the charts in recent years, launched a satellite killer missile into space. in the past two years, deployed the first aircraft carrier, test flown the first stealth fighter jet. one expert tells me the technology for that was taken from the u.s. china s alleged hacking could be deadly for u.s. forces on the battlefield. i asked one expert about the publicly released part of the report on the consequences of cyber snatching of weapons technology. if you mess with the software, the airplane won t fly, the ship won t get to where

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