Attorney General Eric Holder today announced an indictment against five Chinese military officials for cyber-security breaches against six American companies.

Read background from

Holder, in announcing the indictment against five Shanghai-based officials, acknowledged that the defendants have never set foot in the United States. 

Pressed on whether there's any hope the Chinese government would hand over the officials, Holder said only the "intention" is for the defendants to face the charges in a U.S. court, and he hopes to have Chinese government cooperation. 

But the Chinese government immediately signaled it would not cooperate, claiming the accusations were made up and warning the case would damage U.S.-China relations. 

On a “Special Report” panel, Charles Krauthammer called it “fictional foreign policy.” He pointed out that the Chinese immediately rejected the charge, and he said there’s no way the U.S. will ever have these military officials stand trial.

“This is simply a show,” he said.

Krauthammer said the U.S. should have announced the doubling of its cyber defense budget in conjunction with the indictment.

“This is like tweeting Ukraine or tweeting the Boko Haram kidnappings, this is a government with power not using it, and engaging in empty gestures instead.”

Hear his thoughts on the cyber-espionage case in the video above.

Krauthammer also weighed in on the latest in the VA scandal, questioning the president's reaction when the news of the problems surfaced.

"He acts as if - and this is the same with IRS, with eavesdropping on the AP reporters, with all these other scandals, with the ObamaCare launch - as if he stumbled upon the presidency and discovered all this horrible stuff is happening. He's in charge of these departments. At some point you've got to ask, where has he been? Where is the competence, elementary competence he promised when he ran in 2008," said Krauthammer.

Hear more from Krauthammer and the panel on the VA in the clip below.

Later, on "The Kelly File," Krauthammer discussed the VA scandal and what it may reveal about ObamaCare.

Get more analysis from Krauthammer:

Krauthammer: Holder Making 'Big Mistake' By Waiting on VA Investigation

Krauthammer Weighs in on Geithner Interview, Emails in IRS Scandal

Krauthammer: White House Has ‘A Clearly Manipulative Relationship With the Truth’