The Chinese government is finally taking hacking (at least some hacking) seriously.  The first link talks about China strengthening their laws and actually arresting hackers that are hacking targets outside the country (specifically the US pentagon).  The second link details the arrest of Chinese citizens performing a DoS to Chinese DNS servers.  I can't say I'm surprised that the Chinese arrested their own citizens for hacking their infrastructure.  I am surprised that they arrested what appear to be non-"state sponsored" hackers attacking targets outside the country. 

My personal opinion on this is that many of the true hackers picked up will be taken to a "special" detention facility where they will be trained and put to work for the government.  One school of thought is that if they were that good they wouldn't have been caught.  The other school of thought could be that if they are this good without training, imagine the potential.

http://www.china.org.cn/china/news/2009-06/03/content_17878401.htm

http://www.pcworld.com/businesscenter/article/164712/as_hacking_hits_home_china_strengthens_cyber_laws.html