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I can believe it's sanctioned officially since we have more than a few Chinese dissidents living here. Surprised it hasn't happened before actually.
So far, there's nothing to indicate that Chinese dissidents are the target. They're probably far more interested in economic and military intelligence.
That should be "Chinese" hackers, which they were. roreign is how THEY refer to the rest of the wold.
"They caution, however, that there is no way of knowing whether the hackers are Chinese, or some other nationality routing their cybercrimes through China to cover their tracks."

From the article

Also from the article:

He added that any such attack would have some connection to the government in China, which is also known for producing so-called "patriotic hackers" devoted to targeting institutions or governments perceived as threatening to the government at home.

Are we in a cyber cold war?

Nah. The cold war involved a lot of saber rattling and political posturing. This is more like sporadic exchanges of small arms fire across the border.
War? Nope. Just normal, run of the mill, snooping. Happens all the time, even among so-called 'friends'.
Well in that case then, the title is still inaccurate, as the hackers could be Canadian as well and routing their work through China.
Ghostnet, Anonymous.... the world is really shaping up the way Neal Stephenson imagined it...
For those of you interested in blocking by country ipaddress, you can take a peek at iptables -m geoip --help

For debian(ubuntu) users, sudo apt-get install xtables-addons-common , beforehand.

Although ineffective against committed intruders, it can clean your firewall logs a bit.