US, China reach historic agreement on cyber espionage

“The United States welcomes the rise of a China that is peaceful, stable, prosperous and a responsible player in global affairs”, the president said during Xi’s state visit.

“This is progress. But I have to insist that our work is not yet done”, Obama said during a news conference in the White House Rose Garden, Xi standing at a lectern beside him.

“We must recognize that countries have different historical processes and realities, that we need to respect people of all countries in the rights to choose their own development path independently”, he said. China’s pledge to help crack down on hackers who steal commercial secrets from the United States, even coming as it did amid a bit of arm-twisting by Obama, is a big breakthrough that could reduce U.S.-China tensions and end huge losses for American companies.

For his part, Xi said that “islands in the South China Sea since ancient times are China’s territory”.

And President Xi, during these discussions, indicated to me that, with 1.3 billion people, he can’t guarantee the behavior of every single person on Chinese soil – which I completely understand.

The White House quickly switched Chinese flags for the Vatican banners flying in front of the presidential mansion and prepared to roll out the red carpet for Xi, but the leader of the world’s second-biggest economy can expect only a fraction of the wall-to-wall USA news coverage showered upon the popular pontiff. Along the way, President Xi met with USA business leaders to discuss China’s willingness to cooperate with U.S. companies to improve intellectual property protection and other investment related issues. “We’ll work together and with other nations to promote other rules of the road”.

Still, Obama said the possibility of sanctions against individuals or entities remains on the table. China claims to be a victim of cyberattacks and has cautioned the U.S.to desist from making unfounded accusations.

The US government also backed a possible International Monetary Fund decision to add the Chinese yuan to its Special Drawing Rights, a quasi-currency the Washington-based lender uses as its unit of account, if it meets International Monetary Fund criteria.

President Obama alongside President Xi Jinping and his wife, Peng Liyuan, arrive to take official photos before a state dinner at the White House September. 25.

“China’s “green dispatch” system will prioritize power generation from renewable resources, and establish guidelines to accept electricity first from the most efficient and lowest-polluting fossil fuel generators,” the statement says.

Kerry spoke of the cooperation between the United States and China in dealing with global issues such as climate change. “At present, the exchange rate between renminbi and US dollars is moving toward stability”, Xi said.

Overall, the United States is the strongest country in terms of cyber strength.

“While a diplomatic agreement is an important first step, retailers will measure the success of these efforts by China’s actions moving forward”, said Nicholas Ahrens, vice president of privacy and cybersecurity for the Retail Industry Leaders Association, a trade group that includes such members as Best Buy, Sears and Wal-Mart.

An early morning welcome ceremony on the South Lawn of the White House, complete with band music, a military review, and a 21-gun salute, preceded the private meetings involving the two presidents and their aides.