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China and U.S. hold ‘frank’ discussions on cyber-security

The Chinese government will retaliate against USA companies operating in the same sectors as Chinese firms facing new sanctions, but probably won’t up the ante, at least for now.Xi also plans to travel to Washington state during his visit to host a “tech forum” of US and Chinese firms. China’s exports to the US have climbed 6.1 percent in the first eight months of 2015 from a year earlier, compared with a 1.4 percent drop in exports worldwide.

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On the South China Sea issue, Yang said the U.S. is not a direct party to the disputes, and he hoped that the USA would not get involved, as it has promised, and expressed a desire for both countries to “stay in close touch” despite the differences.

China’s official Xinhua news agency said that Meng, who is the country’s domestic security chief, had reached “important consensus” with the U.S. during his visit.

The president will also propose some important action on China’s part as well, Yang said. Even more significant for many U.S. China watchers would be an announcement by the Chinese side of a rethink on the draft law on non-governmental organizations.

China brushed aside the allegations, with foreign ministry spokesperson Lu Kang dismissing them as “rumors” and accusing the United States of cyber theft in turn.

The Obama administration is considering targeted sanctions against Chinese individuals and companies for cyber attacks against U.S. commercial targets, several United States officials have said.

A massive breach in June of the U.S. government’s Office of Personnel Management (OPM) – one that compromised up to 21 million people – has also been attributed by some officials to China, though the Obama administration has refrained from publicly laying blame.

Top US intelligence officials have concluded a four-day meeting with a delegation of senior Chinese officials.

He insinuated that this would be something he would discuss with the Chinese, making it clear that the United States believes cyber attacks will be treated as “a core national security threat”. Admittedly, the distinction between “private” and “government” operations can be thin in China, but there is ample room for Beijing to work these sanctions down into a bit of wrist-slapping against companies out of favor with the Politburo anyway, just to prove how serious China is about cracking down on hackers. “China and the U.S. actually can make cyber security a point of cooperation between our two countries”, he said.

The professor, a well-known China Hand in the United States, also expects Xi to further explain and elaborate on a series of Chinese policies and initiatives, such as the Asian Infrastructure Investment Bank (AIIB), the Belt and Road initiatives, the building of major-power relations and a global community of shared future, during his visit.

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“Whether it’s on climate issues or confronting Iran over their nuclear program, we have been able to effectively coordinate with the Chinese to advance the interests of the citizens of both of our countries”, he added.

Chinese President Xi Jinping in Beijing earlier this month