China arrests OPM hackers

China’s official Xinhua news agency said on Wednesday that an investigation into a massive US computer breach a year ago that affected more than 22 million federal workers found the hacking attack was criminal, not state-sponsored.

The disclosure comes in the midst of ongoing cybersecurity discussions between the two nations, led by Chinese Minister of Public Security Guo Shengkun and United States officials including Secretary of Homeland Security Jeh Johnson and Attorney General Loretta Lynch.

The arrests took place prior to Chinese President Xi Jinping’s state visit in September in an apparent good-faith gesture meant to improve relations with the United States, the paper reports. Through investigation, the case turned out to be a criminal case rather than a state-sponsored cyber attack as the USA side has previously suspected.

But Beijing has denied those claims, and the details of the alleged hackers’ arrest, which are as yet unclear, could lend credence to that denial.

The Chinese government has arrested hackers accused of breaking into the Office of Personnel Management databases, according to The Washington Post.

So, was the OPM hack a case of traditional state-sanctioned, if not state-executed, espionage?

In Washington, OPM referred inquiries to the U.S. Department of Homeland Security, which also did not immediately respond to a request for comment.

White House Press Secretary Josh Earnest pointed to talks this week between China and the U.S. as evidence that the diplomatic row over cyber intrusions is beginning to smooth over.

China vehemently objected to the May 1, 2014, indictment of five People’s Liberation Army hackers for their role in conducting cyber attacks on US companies in Pennsylvania.

Hacks of government and corporate data emanating from China have been a constant source of tension between the United States and China.

A big concern was that Chinese intelligence could use the data to help determine the identities of future US intelligence employees that may try to enter China.

The two sides agreed to convene the next cyber security ministerial dialogue in Beijing in June next year.

It’s the first such talks since the two countries signed a bilateral anti-hacking accord in September.