The Heat: China-US relations amidst President Xi’s US visit

Obama said he described to Xi the “tools” the administration has to deter and punish cybercrime and cyberattacks.

“I want to assure you that such goodwill is fully reciprocated by the Chinese people”, Xi said.

China denies being involved, saying its a victim of cyber- espionage itself and opposes hacking.

Realizing the Chinese Dream is a process that promotes social justice and advances human rights, Chinese President Xi Jinping said here Friday.

– The two sides should maintain close exchanges and communication at all levels. Before Xi’s visit, the U.S. had threatened economic sanctions against China over the cyber-theft claims.

He reiterated this warning during the joint briefing, noting that the USA would apply sanctions “and whatever other tools we have in our toolkit” to stop cybercriminals “either retrospectively or prospectively”. “Today’s joint statement creates a much-needed umbrella under which concrete, practical steps can be taken to reduce conflict in cyberspace”, said Bruce McConnell, a former top cyber security officer at the Department of Homeland Security.

Analysts say the agreement between the worlds two biggest economies is just a start but could lead to real progress on the cybertheft issue, depending on how well its implemented.

China and the USA are ready to strike a global carbon emissions trade deal to form a market for industries producing greenhouse gas emissions.

On other issues, the leaders either politely disagreed or made only vague commitments.

Addressing a luncheon hosted by US Vice President Joe Biden and Secretary of State John Kerry at State Department, Xi said he and Obama are determined to build a new model of major-country relationship.

Mr. Xi, who faces a rising nationalism at home as well as pressure to get China’s economic house in order, called for “mutual respect”.

The new promises, which follow a bilateral deal struck past year on cutting emissions, strengthen Mr. Obama’s position for the Paris conference on climate change in December, at which the President is expected to push for sweeping emissions cuts from other counties.

There has also been China’s military buildup, which it helpfully demonstrated during President Obama’s trip to Alaska last month when a fleet of five Chinese ships made a trip to show off their offensive capacities inside Alaska’s waters.

“Islands in the South China Sea since ancient times are Chinese territory”, Xi said.

Mr Obama said the United States had significant concerns over the “land reclamation, construction and the militarisation” of disputed areas in the seas which “makes it harder for countries in the region to resolve disagreements peacefully”.

China retains little stake in the World Bank and worldwide Monetary Fund and with a reform plan for the Washington-based institutions blocked by US Republican lawmakers, China has set up its own lender, the Asian Infrastructure Investment Bank.

In their dinner toasts, both leaders focused on the theme of friendship.

Before flying to the USA capital, Xi concluded a busy two-and-a-half-day stay in the West Coast technology and aviation hub of Seattle.