US, China agree to stop cyber attacks

The US and China announced agreement on broad anti-hacking principles aimed at stopping the theft of corporate trade secrets though President Barack Obama pointedly said he has not ruled out invoking sanctions for violators.

Speaking at a joint news conference in the White House Rose Garden, Obama praised Xi for his commitment in cutting down greenhouse gas emissions.

The gang will meet twice a year to go over outstanding issues and discuss progress in online security.

Obama said the USA would be watching closely to see “if words are followed by actions”, and would not hesitate to use punitive measures in case of a violation. US intelligence officials believe China was behind the theft of millions of security-clearance files as well as recent cyberlooting of health insurance and airline records.

China strongly opposes and combats the cyber theft of trade secrets, Mr Xi said, and urged against the politicisation of the issue.

Expectations are mounting on Chinese President Xi Jinping’s trip to the United States on enhanced collaboration in fighting climate change with its U.S. counterpart.

The Treasury Department has drafted possible economic sanctions on Chinese individuals and companies suspected of stealing data from US companies, but the White House has held off on acting punitively, hoping the threat of sanctions will press China to do more to stop the breaches.

Obama hosted a lavish black-tie state dinner for Xi on Friday night, featuring Maine lobster and Colorado lamb for about 200 guests, with technology executives featured among them. Similarly, for all his assurances on cybersecurity, neither U.S. business nor the administration is convinced of substantial change in China’s behaviour.

In their dinner toasts, both leaders focused on the theme of friendship. “I will just say that we have made clear our concerns about China’s activity in cyberspace”, the Guardian cited Obama’s Press Secretary Josh Earnest as saying. “Confrontation and friction are not the right choice”, he said.

The Union of Concerned Scientists (UCS) welcomed the announcement, stressing how important it is for the top two carbon-emitting nations to set an example in advance of the U.N. climate meeting in Paris in December.

A White House fact sheet noted that the two sides had agreed to new annexes on air-to-air safety and crisis communications to previous agreements designed to build confidence between the two militaries, which operate in close quarters in the Asia Pacific region.

Xi said China was concerned about human rights, but insisted that reform would come on its own timetable.

In their talks, Obama also pressed Xi to follow through on economic reforms and not discriminate against US companies operating in China.

The scale of China’s climate finance promise – coming in at US$3.1 billion – has the potential to be bigger than Washington’s US$3 billion pledge to the Green Climate Fund, which was still struggling to get through the US Congress, Li said.

Obama also raised the issue of Chinese island-building in the South China Sea and urged Xi to act in accordance with global law.