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

Read background from FoxNews.com:

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. 

Judge Andrew Napolitano responded today on America's Newsroom, saying "it's about time" that the federal government did something about the Chinese stealing secrets from American companies. But he pointed out that the most that can come from these indictments is a "paper conviction" in absentia, since these men will never come to the U.S. and the countries have no extradition treaty.

Napolitano said he's concerned that China could respond by arresting U.S. business people as a "trading implement" to get the U.S. government to dismiss the charges.

Eric Shawn asked why the Justice Department is choosing to bring these charges now, especially if it could result in danger to Americans in China.

"A cynical reason for why we did it now is because the Obama administration wants to get its scandals with Benghazi and the Veterans Administration - in both of which innocent human beings died because of the government's incompetence - off the front page," said Napolitano, who went on to read between the lines of Beijing's response.

"It's basically, 'Hey, you know exactly who's spying on you, we know who's spying on us. We're both spying on each other. There are other ways to resolve this than to indict these low-level people.' These are not senior people, these are not Chinese admirals and generals or directors of intelligence. These are the people actually working the computers."

Watch the full discussion above.