US Sanctions Threat May Have Forced China To Sign Cyber Security Deal

China may have agreed to co-operate with the US over Cyber Security due to threat of economic sanctions against the nation.

The Obama administration was able to extract the agreement under threat of sanctions should China not sign the agreement which among other things forces Beijing to prosecute Chinese officials and private citizens involved in cyber threat or espionage against the US, various US media reported.

According to the agreement, China has agreed to stop engaging in economic espionage. China will now crack down its own officials and private companies involved in hacking US companies in a move to stop cyber thefts. Until now, the US could not prosecute Chinese offenders as it is out of their jurisdiction.

China agrees to respond to requests from US law enforcement in case US finds cyber espionage happening. US will now be able to review the timeliness and quality of responses to requests for information and assistance with respect to malicious cyber activity of concern identified by the US. This was not possible earlier.

As part of the mechanism, both sides agree to establish a hotline for the escalation of issues that arise. US can still sanction certain Chinese companies but not likely the government if China does not fulfill its promises.  China might have agreed to reduce the impact of economic sanctions against the nation.

The Obama administration however was devising economic sanctions since August against China over cyber-thefts.

The sanctions would mean freeze financial and property assets of, and bar commercial transactions with, individuals and entities overseas who engage in destructive attacks or commercial espionage in cyberspace, Wall street Journal reported in August.

“As the president said when signing the executive order enabling the use of economic sanctions against malicious cyber actors, the administration is pursuing a comprehensive strategy to confront such actors. That strategy includes diplomatic engagement, trade policy tools, law enforcement mechanisms, and imposing sanctions on individuals or entities that engage in certain significant, malicious cyber-enabled activities,” the news daily had reported quoting a senior administration official as saying.