This week’s U.S.-China Strategic and Economic Dialogue will set the table for Chinese President Xi Jinping’s first state visit to the United States in September. Backed by both presidents and with interagency participation at senior levels from both governments, the dialogue is built to address an array of issues, ranging from security to commercial concerns. The U.S.-China Business Council believes cybersecurity tensions need to be high on the agenda.
The cyber issue presents serious challenges not only in the security relationship, but also in the economic relationship. If left unaddressed, it has the potential to be the greatest threat to the long-term direction of the bilateral relationship. The links to California and its economy are clear.
Intellectual property theft is most often thought of as the commercial aspect of the cybersecurity issue. But there are other areas that trouble companies and need attention.
Industrial safety is one; CEOs of companies with chemical facilities, for example, worry that hackers could intentionally or unintentionally cause an accident that could harm workers or even public safety. The risk is the same whether the plant is in Houston or Suzhou.
Market access in China is another; tech companies see the cyber issue spilling over into it, as rules are proposed to keep foreign technology out of not just government sales opportunities but also commercial bids in banking and other sectors. Technology decisions by any government, however, should be based on legitimate national security needs and not be used as a tool of protectionism.
Cybercrime is another area.
These are all areas where the two governments should find common ground.
John Frisbie is the president of the U.S.-China Business Council.