US may impose sanctions on Chinese firms over alleged cyber theft of trade secrets ‘as early as next week’

The United States is preparing to sanction Chinese companies connected to the cyber theft of US intellectual property as early as next week, the Financial Times reported.

The FT cited three US officials as saying the sanctions probably would come next week in advance of President Xi Jinping’s visit later in the month.

Suspicions that Chinese hackers were behind a series of data breaches in the United States have been an irritant in relations between the United States and China.

The United States is also considering sanctions against Russian individuals and companies for cyber attacks, US officials have said.

The officials, who spoke on condition of anonymity, had said any move against Chinese entities or individuals before Xi’s trip was possible but unlikely because of the strain it could put on the visit. It will include a state dinner at the White House hosted by President Barack Obama.

“The Chinese government staunchly upholds cyber security, firmly opposes and combats all forms of cyber attacks in accordance with law,” Chinese Embassy spokesman Zhu Haiquan said in a statement earlier this week.

Asked about the possibility of sanctions coming next week, State Department spokesman Mark Toner told reporters: “When it comes to economic sanctions, we don’t preview any kind of sanctions beforehand for obvious reasons. We don’t want to give a heads-up to those who may be potential targets of economic sanctions to begin to take steps to evade sanctions activity.”