News Summary: Cyberattacks a growing irritant

News Summary: Pentagon report mention of China cyberattacks a nod to growing threat to ties

BAD VIBES: Signs are growing that the sustained surge in cyberattacks emanating from China is imperiling its relations with the U.S.

SUSPICIONS: The Pentagon this week said China appeared to be cyberspying against the U.S. government. China has called the accusations groundless, saying it's impossible to tell the origin of cyber-intrusions, and complained that it too is a target of hacking.

NEXT STEP?: Thus far, President Barack Obama's administration has mostly sought to apply pressure and avoid a confrontation that could set off a Chinese backlash at a time when Washington wants to keep the economy afloat.