I think those are both excellent questions.  I'm not sure what we do about it, I don't think anyone is.  Google's choice certainly had some flair to it, but probably isn't a general stategy for most relations with China.  I'm not sure where that leaves us.<p>Myself, I'm working towards more research that will hopefully make it harder to attack systems, it's a hard area, but I think there's still more we can do.  I think there are some levels of technological measures we can take to help with this issue, though obviously nothing is a panacea.<p>As for military response, it may well be that eventually that plays a role.  (Hopefully at most only involving the ability to set clear lines on what merits military action to hopefully act as a deterrance.)  I think many people are working hard to try and get a handle on this issue before it ever goes that far.<p>In my opinion, the largest problem is right now we do not have a handle on this, so it's really unclear how it all plays out.