The Obama Administration has finally come to the realization it can no longer hide its head in the sand since every media outlet has reported on China being the culprit behind the massive OPM breach. It is at this crossroads the US has decided to retaliate against China for hacking but the officials remain uncertain on the exact method to be used:

But in a series of classified meetings, officials have struggled to choose among options that range from largely symbolic responses — for example, diplomatic protests or the ouster of known Chinese agents in the United States — to more significant actions that some officials fear could lead to an escalation of the hacking conflict between the two countries.

That does not mean a response will happen anytime soon — or be obvious when it does. The White House could determine that the downsides of any meaningful, yet proportionate, retaliation outweigh the benefits, or will lead to retaliation on American firms or individuals doing work in China. President Obama, clearly seeking leverage, has asked his staff to come up with a more creative set of responses.

“One of the conclusions we’ve reached is that we need to be a bit more public about our responses, and one reason is deterrence,” said one senior administration official involved in the debate, who spoke on the condition of anonymity to discuss internal White House plans. “We need to disrupt and deter what our adversaries are doing in cyberspace, and that means you need a full range of tools to tailor a response.”

In public, Mr. Obama has said almost nothing, and officials are under strict instructions to avoid naming China as the source of the attack. While James R. Clapper Jr., the director of national intelligence, said last month that “you have to kind of salute the Chinese for what they did,” he avoided repeating that accusation when pressed again in public last week.

But over recent days, both Mr. Clapper and Adm. Michael S. Rogers, director of the National Security Agency and commander of the military’s Cyber Command, have hinted at the internal debate by noting that unless the United States finds a way to respond to the attacks, they are bound to escalate.

Mr. Clapper predicted that the number and sophistication of hacking aimed at the United States would worsen “until such time as we create both the substance and psychology of deterrence.”