U.S. Developing Sanctions against China over Cyberthefts

By Published on August 31, 2015

The Obama administration is developing a package of unprecedented economic sanctions against Chinese companies and individuals who have benefited from their government’s cybertheft of valuable U.S. trade secrets.

The U.S. government has not yet decided whether to issue these sanctions, but a final call is expected soon — perhaps even within the next two weeks, according to several administration officials, who spoke on the condition of anonymity to discuss internal deliberations.

Issuing sanctions would represent a significant expansion in the administration’s public response to the rising wave of ­cyber-economic espionage initiated by Chinese hackers, who officials say have stolen everything from nuclear power plant designs to search engine source code to confidential negotiating positions of energy companies.

Any action would also come at a particularly sensitive moment between the world’s two biggest economies. President Xi Jinping of China is due to arrive next month in Washington for his first state visit — complete with a 21-gun salute on the South Lawn of the White House and an elaborate State Dinner. There is already tension over a host of other issues, including maritime skirmishes in the South China Sea and China’s efforts to devalue its currency in the face of its recent stock market plunge. At the same time, the two countries have deep trade ties and the administration has sometimes been wary of seeming too tough on China.

Read the article “U.S. Developing Sanctions against China over Cyberthefts” on washingtonpost.com.

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