Bruce Schneier has spoken.
Bruce Schneier is literally the king when it comes to knowledge on computer security. He is a cryptographer, computer security specialist, and writer. He has a master’s degree in computer science from the American University in Washington, DC. He has taken part in the creation of some of the worlds best cryptographic algorithms, such as Helix, Blowfish, Threefish, and MacGuffin. If anyone knows what they are talking about when it comes to computers and security its this guy.
Recently he published an essay on the whole Chinese hacking thing.
Here is a link to his essay I HIGHLY suggest you read it, its informative to say the least.
Link
Under a requirement taking effect soon, every computer sold in China will have to contain the Green Dam Youth Escort software package. Ostensibly a pornography filter, it is government spyware that will watch every citizen on the Internet.
Green Dam has many uses. It can police a list of forbidden Web sites. It can monitor a user’s reading habits. It can even enlist the computer in some massive botnet attack, as part of a hypothetical future cyberwar.