Is China a friend or an enemy of the US? This is a country that can be dangerous–and not just because of the adulterated food and fake medicine they export. It turns out they are undertaking a massive spy operation (NOTE: Subscribers can still listen to this show).

As the Chinese economy falters and the country’s scientific progress continues to lag behind the west, China appears to be resorting to massive attempts to steal trade secrets and technology from the west. What has happened, in essence, is a gigantic transfer of wealth by illicit means from western corporations and countries to China. "Operation Shady Rat" has been carried out by a "state actor" for five years, according to McAfee Security, which recently revealed the extent of the hacking effort.

Governments, corporations and other organizations have been compromised, including the US government and 48 other American organizations, as well as the United Nations and many other developed countries, including Canada, South Korea, Taiwan, the United Kingdom, Germany, Singapore and others. Classified government secrets, corporate trade secrets, source code, databases of bugs and software structures, email archives, mining exploration plans, oil and gas field discoveries, legal contracts, design schematics and much other such material has been illegally transferred to this unknown party.

The amount of data has reached petabyte proportions, and what is being done with it remains an unknown. The "state actor" also remains unknown, but one security expert told Reuters that the evidence points to China.

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