The Epoch Times and the Chinese BBC have both coverd the story of a ten-month research study by the Munk Center for International Studies in Toronto, CA. The research reports that in the past two years, a Chinese spy network dubbed "GhostNet" has invaded 1,295 computers in 103 countries, including government agencies. These agencies include foreign affairs ministries, embassies and consulates, international organizations, news agencies, and NGOs. According to the report, there’s a "covert, difficult-to-detect and elaborate cyber-espionage system capable of taking full control of affected systems" that leads back to China.
Researchers at the Oxford University, UK also reported that these Chinese hackers have gathered information for the Chinese police to enable them continue their crackdown in Tibet.
While not claiming absolute proof, their newly-released report "Tracking GhostNet: Investigating a Cyber Espionage Network" says "circumstantial evidence" strongly suggests "this set of high profile targets has been exploited by the Chinese state for military and strategic-intelligence purposes." The Chinese Embassy in London denied any involvement and claimed the reports to be propaganda issuing from the Tibetan Government in Exile.
Source: The Epoch Times, March 31, 2009
Source: BBC Chinese, March 30, 2009
Source: NetworkWorld, April 1, 2009