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Biden says China cyber-theft must stop

PUBLISHED : Thursday, 11 July, 2013, 12:06am
UPDATED : Friday, 12 July, 2013, 12:55pm

WASHINGTON (AP) — Vice President Joe Biden said Wednesday that China's rise is good for the U.S. and the world but Chinese theft of U.S intellectual property must stop.

Biden was speaking at the opening of the annual Strategic and Economic Dialogue between the two world powers. He was introduced by Secretary of State John Kerry who returned to Washington for the two-day dialogue from his wife's bedside in Boston after she was hospitalized.

Cabinet-level officials will review security and economic issues that reflect growing ties but also deep-seated differences between the two countries.

Biden said that an open Internet is in both nations' interests and "outright cyber-enabling theft that U.S. companies are experiencing now must be viewed as out of bounds and needs to stop."

High-ranking officials of the United States and China convened in a relatively staid setting in contrast to the unconventional summit that the two countries' presidents had recently at a California resort. The newest round of talks reflect growing ties between Washington and Beijing but also lay bare deep-seated differences.

The fifth edition of the annual Strategic and Economic Dialogue was taking place in less fraught circumstances than last year's meeting in Beijing, which was overshadowed by the escape of dissident lawyer Chen Guangcheng from house arrest to the U.S. Embassy.

But there's still plenty to argue about. The Cabinet-level officials taking part in the two days of talks at the State Department and Treasury will address the growing U.S. anxiety over cybertheft, the nuclear program of China's ally North Korea and barriers to U.S. trade and investment in China. They will also discuss cooperation on tackling climate change.

Biden, Kerry and Treasury Secretary Jacob Lew were due to lead the U.S. side, which includes more than a dozen government agency heads. A similarly heavyweight Chinese delegation is led by Vice Premier Wang Yang and State Councilor Yang Jiechi.

Kerry, however, had to return to Boston Wednesday to be at the site of his ailing wife, Teresa Heinz Kerry.

When President Barack Obama and President Xi Jinping met at the Sunnylands resort in California last month, they sought a more collaborative relationship between their countries, whose strategic rivalry belies deep economic interdependence. Xi, who recently took the helm of the one-party state after a once-in-a-decade leadership transition, has long spoken of establishing a new type of relations that would avoid conflict between the established power, America, and the rising power, China.

But translating the grand vision into action, and reconciling the fundamental political differences, isn't easy. The California summit was short on concrete outcomes, and although Xi did express common cause with Obama in his opposition to North Korea's nuclear weapons program, that has yet to translate into effective pressure on Pyongyang.

When the U.S.-China dialogue was first staged, the emphasis was on economy and trade. It has since morphed into a sprawling discussion of bilateral and strategic issues that some have said make the talks unwieldy. Officials will grapple with a wide variety of topics, among them Iran's nuclear program, the civil war in Syria and human rights in China itself.

A longtime Washington concern in its relations with China — the low value of China's currency and its impact on the skewed trade balance — has eased as the yuan has appreciated in value against the dollar. These days, the Obama administration is putting most emphasis on cybertheft of intellectual property and trade secrets and says resolving that will be key to the future of the relationship. That was the subject of working-level talks Monday; on Tuesday, civilian and military officials discussed maritime security, missile defense and nuclear policy.

While stressing the cyber issue, Washington has been put on the defensive by the revelations about U.S. surveillance by National Security Agency leaker Edward Snowden, whom the U.S. had wanted extradited from the semiautonomous Chinese territory of Hong Kong before he flew to Russia. Among Snowden's allegations was that the U.S. hacked targets in China, including the nation's cellphone companies and two universities.

Cheng Li, a China expert at the Brookings Institution, said an extradition from Hong Kong would have been deeply unpopular among the Chinese public and could have triggered street protests, and U.S. policymakers likely realize it. He said he did not expect the Snowden case to weigh on this week's dialogue.

There appears little room for compromise on the thorniest security concerns that hamper U.S.-China ties, such as China's attitude toward territorial disputes in the South and East China seas, where its assertive actions have unnerved its neighbors, including U.S. allies. There's more hope of progress in areas such as energy security and climate change, including cooperation on reducing emissions.

On the economic front, U.S. businesses and lawmakers want the Obama administration to push China harder to reduce barriers to American trade and investment, roll back subsidies for Chinese state-owned enterprises and make progress on negotiations for a bilateral investment treaty. For its part, China is concerned about security screening of its companies as they increasingly look to invest in the U.S.

The Center for Strategic International Studies think tank said the Chinese side will have little room to maneuver as the dialogue comes ahead of a meeting in October of the ruling party's central committee, where Xi's economic reform plans will be rolled out. Still, Beijing will likely want to show some incremental progress on Washington's trade and investment concerns, including protection of intellectual property.

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