The sort of sweeping parochial espionage and attempts to extract information from all sorts of institutions are well documented, but I think in this context there's a danger of oversimplifying and seeing that sector of cyber as a one-way street.

What we're going to get as this next generation grows up is more hacking skills and this is spreading geographically also - Africa is about to come on the scene, South and Central America are going to be major sources of hackers. These people have got to be engaged with.

The sort of sweeping parochial espionage and attempts to extract information from all sorts of institutions are well documented, but I think in this context there's a danger of oversimplifying and seeing that sector of cyber as a one-way street.

The Internet has fashioned a new and complicated environment for an age-old dilemma that pits the demands of security against the desire for freedom.

In 2010, you have roughly 38 billion dollars spent by government on cyber and telecoms security and another 60 billion or so by private corporations. So approximately 100 billion dollars spent on security, mostly on technological solutions, which the corporates are offering governments in particular; it's a very high growth area. So everyone is climbing over each other to get the contracts for government procurement on this. There is undoubtedly an element of this and that's what encourages, in part, the whole idea of locking down the Internet.

The U.S. has the most advanced cyber-weaponry on the planet, and t if you look at the U.S. from the perspective of the Chinese People's Liberation Army, which runs most of its cyber activities, they look at you and they see Google and Facebook - the two largest depositories of personal data in the world - and they see the reach of the National Security Agency, which has huge digital capacity to know what is going on around the world. So the Chinese would see cyber as an un-level playing field, because the U.S. holds all sorts of advantages.

The attack on the law firms and attacks like that are industrial espionage, searching for copyrighted materials to lift and so on; it's not quite the same as cyber-warfare. They are regarded as related. The Chinese are trying to steal an economic march on the West, which is a consequence of the fact that we outsourced all of our manufacturing to China in the 1990s.