A report in the China Daily newspaper claims that the country's biggest hacker training site has been shut down by the authorities.
The paper said that three people have been arrested, and that assets to the value of ¥1.7m (£160,000) have been seized, suggesting that the site was big business.
The Black Hawk Safety Net site was set up in 2005, and had some 12,000 members, all of whom may have paid up to ¥2,000 (£190) for training in hacking and other online criminal activities.
A further 170,000 people were registered on the site, but had not paid a fee and had received only low level hacking tips and tricks, according to the report.
The authorities seized a number of web servers, five computers and a car.
China's recently created anti-hacking laws make it illegal to attack software and other computer programs.
However the country's reputation has recently been tarnished by allegations that hackers from the region have been involved in cyber attacks on Google and UK businesses.
By David Neal