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.

There are two types of companies in the world: those that know they've been hacked, and those that don't.

It's great that the Internet can enhance and speed up our communications and that computers can do all the things they do. It's fabulous. At the same time, it changes our priorities. For example, before I would always remember people's telephone numbers and now I don't know anyone's number. So what happens if computer systems go down but you still have landlines? Well, I couldn't call anyone because I don't know anyone's number.

The Internet obviously changes things; we've seen that in the music industry above all else. As an author, I'm now having to deal with the fact that it's happening in the publishing industry as well. And publishing is going through a very difficult time. Some view it as positive, some negative, but nobody really knows how to deal with it. If you're an author it looks very challenging because your work can be pirated so easily and there's very little you can do about it.

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.

The issue of cyber-security, cyber-crime, and cyber-malfeasance has an impact on a whole range of issues, not the least of which is civil liberties, political activity, and so on and so forth.

The internet is fracturing into a series of huge country-based intranets, in which governments define, in the name of security, what is legitimate personal and intellectual communication, and what is not.