It's time for electronic warfare. Not hacking into the military system - that's so obvious, and it was so uncharacteristically direct of the Chinese to do it. No, I think the counterattack is through computer games.
Fund the provision of PSPs, Xboxes, Wiis and a host of absorbing games (e.g. Morrowind, Gears of War) as pseudo-benevolent gifts to bright young Chinese kids. With any luck, the effect will be the same as here: early, heavy adoption by the ASD/OCD types who might otherwise become the core of the mathematics/engineering/science elite that keep the rest of the population warm, well-fed and protected against disease.
If that doesn't work, only power cuts can save us.