US, China: We won’t engage in cyber theft

“We have broad common interests in the field of cyber, but we need to strengthen cooperation and avoid confrontation”, Xi said.

China has said repeatedly that the artificial islands it has built up on disputed reefs would be used for military defense and analysts say satellite pictures show it has completed one military length runway and appears to be working on two more.

Speaking at a joint press-conference on Friday, after two-days of meetings, Mr Obama said the leaders had “jointly affirmed the principal that governments don’t engage in cyber espionage for the gain of commercial companies”.

Beijing has taken an increasingly aggressive posture in the South China Sea and disputes over territories in the East China Sea continue to cause tension between Beijing and its neighbors, many of which are close US allies.

Obama said he had “candid” discussions with Xi, and that he “reiterated the right of all countries to freedom of navigation and over-flight and to unimpeded commerce”.

“The world’s two largest economies, energy consumers and carbon emitters come together like this, then there is no reason for other countries, whether developed or developing, to not do so as well”, Obama said.

On Friday, China also announced it would channel $US3.1 billion to help developing countries combat and adapt to climate change, a significant financial pledge from an emerging economy.

While global ivory trading has been banned since 1989, the legal domestic trade of ivory in Hong Kong, China, Thailand, Vietnam and the USA has had a hand in feeding a poaching crisis that has spiraled out of control.

The USA president called on the United States and China to also enhance cooperation in areas such as climate change, health care and in fight against smuggling of wild animals and plants. I believe that the threat of sanctions brought President Xi to the negotiating table, and President Obama must make clear to his counterparts that sanctions will be levied on rogue actors in cyberspace.

The United States meanwhile highlighted the finalisation of its Clean Power Plan, which it said would “reduce emissions in the USA power sector by 32 per cent by 2030”.

On Thursday, the White House said it was considering economic sanctions against Chinese individuals and entities claiming they have profited from hacks of U.S. networks.

“While a diplomatic agreement is an important first step”, said Nicholas Ahrens, vice president of privacy and cybersecurity, “retailers will measure the success of these efforts by China’s actions moving forward”.

Past year the US charged five officers in China’s People Liberation Army for computer hacking and economic espionage against six USA companies, including Westinghouse, U.S. Steel and Alcoa.

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

China has long denied that it is behind attacks on us companies and government.