OK ... it isn't that bad. But it does say something when it is noteworthy that DoD has now officially acknowledged that the Chinese military are a source of cyber intrusions in the United States. The full text of the report can be found here. Here's the money quote:
"In 2012, numerous computer systems around the world, including those owned by the U.S. government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military."