I see a lot of people going off on a tangent about this proposed Bill and how it might help the RIAA/MPAA, but it seems to be designed to get a handle on the blatant (possibly state sanctioned) cyber attacks from countries such as China.
Right now, there isn't any actual internationally accepted law surrounding Cyber Warfare. In other words, there is no consensus about what kind of cyber attack crosses the line to such an extent that it becomes an act of war. A large problem with cyber attacks is attribution. Not knowing who really attacked you limits your options in terms of a proportional response, and this is a big issue for policymakers everywhere. Essentially it has caused most governments to (at best) apply a strictly passive defense to their critical infrastructure, instead of an immediate offensive response (ie. packetting whoever is attacking you).
In the physical world an invading force would immediately be met with physical violence and quite possibly international outrage towards the offending party, acting (in most cases) as a deterrent. Right now, there is no such deterrent in the arena of Cyber Warfare and countries such as China seem to be actively exploiting that. They know that even IF they get caught, they can simply deny government involvement and blame it on non-state actors. Of course, those "non-state actors" are never actually brought to justice, making the whole exercise futile.
It seems to me that this Bill is designed to counter this problem by imposing sanctions against countries who either engage in Cyber Warfare or harbor those convenient "non-state actors", and as such seems a sane step forward.
Of course, one can only hope that such a Bill would not be abused by the **AA.