

Initially, the agreement was a limited success.

“We are prepared to take some countervailing actions in order to get their attention.” “We are preparing a number of measures that will indicate to the Chinese that this is not just a matter of us being mildly upset, but is something that will put significant strains on the bilateral relationship if not resolved,” Obama told business leaders the week before Xi’s visit. These threats, the first that an American president had ever issued in response to Chinese economic espionage, were calibrated to address not just China’s cyber-activities but also its broader economic and strategic objectives. companies with cyberattacks or exploit stolen intellectual property for commercial gain.

In the weeks leading up to the Rose Garden ceremony, Obama had threatened to sanction Chinese companies and citizens who continued to target U.S. The agreement was equally groundbreaking because of how it came about. intellectual property and state secrets in order to advantage Chinese companies. But it was a groundbreaking pledge for China, whose military and intelligence agencies had for more than a decade engaged in massive cyber-enabled theft of U.S. intelligence services from conducting economic espionage for the benefit of private companies. It was an easy promise for the United States to make, since Washington had long prohibited U.S. The scope of the agreement was modest, committing China and the United States only to stop stealing or aiding in the cyber-enabled theft of intellectual property in order to boost domestic industry. President Barack Obama stood beside Chinese President Xi Jinping in the White House Rose Garden and announced a historic deal to curb cyber-related economic espionage.
