Chinese leader insists Beijing isn’t hacking US

The Chinese government does not engage in or support commercial hacking in any form, President Xi Jinping told The Wall Street Journal in a written interview published on Tuesday.

“Cybertheft of commercial secrets and hacking attacks against government networks are both illegal; such acts are criminal offenses and should be punished according to law and relevant international conventions,” Xi said. “We are ready to strengthen cooperation with the U.S. side on this issue.”

{mosads}Xi added that China is also a victim of hacking.

The Chinese leader is scheduled to arrive in Washington state today in advance of his official state visit with President Obama later this week. The meeting takes place under the threat of U.S. sanctions in response to allegations of persistent Chinese hacking.

China has consistently claimed innocence for cyberattacks conducted on U.S. interests, despite a July FBI report that pegged on Beijing the lion’s share of a 53-percent rise in economic espionage cases.

“We hope that the U.S. stops its groundless attacks against China, start dialogue based on a foundation of mutual respect, and jointly build a cyberspace that is peaceful, secure, open and cooperative,” China’s Foreign Ministry Spokesman Hong Lei said during a news briefing earlier this month.

Experts say one of Xi’s goals this week will likely be to lobby both tech and government against economic sanctions. They also argue that in denying the allegations, Xi may be hurting himself.

“I’m really curious if China overplayed its hand with, ‘We don’t do anything, we’re just innocent victims,’” Jason Healey, a senior research fellow at Columbia University’s School of International and Public Affairs, told The Hill.

He contrasted China’s approach with how the U.S. responded in the wake of the Edward Snowden revelations that revealed the breadth of the country’s cyber surveillance.

“We’ve gotten much better at being transparent. China still has not,” Healey said. “If Xi rolls into [a Wednesday meeting with tech leaders] saying, ‘You shouldn’t sanction us, we don’t do anything, we believe in peace,’ he’s going to lose ground that he might gain.”

The Obama administration has taken a hard line on Chinese cybertheft going into Xi’s arrival in Washington on Wednesday night.

During a Monday speech at George Washington University, National Security Advisor Susan Rice issued a stern warning to China about its incursions and meddling in cyberspace, the South China Sea and global currency markets.

“As my critics allege, I can be rather direct. I can assure you that President Obama will be just as direct when he meets with President Xi,” Rice said. “Everyone has to play by the same rules, regardless of size or power, because that’s the way everyone can compete or be treated equally.”

Her comments echo President Obama, who hinted last week that his administration was prepared to levy sanctions on Chinese companies accused of benefiting from trade secrets.

In an environment of growing pressure from lawmakers, the two countries appear to be inching closer to the negotiating table on cybersecurity.

On Monday, a New York Times report revealed that the U.S. and China are working on an agreement defining rules of engagement for cyberwarfare. The agreement would not address commercial hacking or intelligence gathering, but would promise that neither country will be the first to launch cyberattacks on the other’s critical infrastructure.

China policy experts and former administration officials characterized the potential deal as a “baby step” in a delicate diplomatic discussion over cybersecurity.

Last weekend, a group of senior Chinese officials led by China’s domestic security chief Meng Jianzhu participated in what the White House termed a “frank and open exchange about cyber issues” with Rice and other intelligence leaders.

“The international community as a whole should work together to build a peaceful, secure, open and cooperative cyberspace on the basis of the principles of mutual respect and mutual trust,” Xi said in Tuesday’s interview.