China, US Hold Talks to Bridge Cyber-Security Differences

Chinese and American officials said Tuesday that they're committed to bridging their differences on cyber-security, as they held talks on the issue amid complaints over China-based hacking operations that the United States says may have already cost US companies tens of billions of dollars.

Repeated meetings between the sides on cyber-security indicate the seriousness with which the Obama administration regards the issue, the US ambassador to China, Max Baucus, said at the start of the two-day talks in western Beijing.

"We're here today to ensure implementation of agreements made by the two presidents, commitments that illustrate that we can work through areas of differences to reach areas of cooperation," Baucus said, referring to an agreement that neither government will support commercial cyber-theft forged during Chinese President Xi Jinping's visit to the White House in September.

Cyber issues are "an important element in our bilateral relationship," the ambassador said. "Each step that we take enables us to have greater trust. We're prepared to work hard with you to narrow our differences."

Chinese Minister of Public Security Guo Shengkun said China wants to "bring the discussions from policies on paper to actual implementation."

"Both sides will continue to cooperate on cyber cases. I believe the leadership on both sides places emphasis on the issue and values participation. Xi Jinping has personally been involved," Guo said.

US Secretary of Homeland Security Jeh Johnson and Attorney General Loretta Lynch were scheduled to attend the meetings, but withdrew following the mass shooting in Orlando, Florida.

Although China denies sponsoring or permitting hacking attacks, a congressional advisory body said last year that China's increasing use of cyber espionage has already cost US companies tens of billions of dollars in lost sales and expenses in repairing the damage from hacking. It says in many cases, stolen trade secrets have been turned over to Chinese government-owned companies.

That body, the US-China Economic and Security Review Commission, is typically strongly critical of Beijing, and said the US response to the threat has been "inadequate." It said China has also infiltrated a wide swath of US government computer networks.

Among the most serious breaches in which China is suspected was one last year against the Office of Personnel Management. Hackers gained access to the personal information of more than 22 million US federal employees, retirees, contractors and others.

China describes itself as a victim of hacking and says it is combating cybercrimes.

Along with cyber-security, the two days of talks are also expected to deal with global supply chain security, combating transnational crime, illegal immigration, counterterrorism and maritime law enforcement.