U.S. Warning to China on Hacking Has No Teeth

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By Douglas A. McIntyre Published
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From unfair trade practices to charges of currency manipulation, the government of the People’s Republic has a long-time habit of ignoring U.S. warnings about its behavior. “Hacking” of American businesses is no exception because the Obama administration’s objections have no teeth. In other words, the hacking will continue.

Thomas Donilon, the National Security Advisor to President Obama, told a group at the Asia Society in New York that as he surveyed the relationship between the United States and China, particularly on electronic security:

From the President on down, this has become a key point of concern and discussion with China at all levels of our governments. And it will continue to be. The United States will do all it must to protect our national networks, critical infrastructure, and our valuable public and private sector property. But, specifically with respect to the issue of cyber-enabled theft, we seek three things from the Chinese side. First, we need a recognition of the urgency and scope of this problem and the risk it poses — to international trade, to the reputation of Chinese industry and to our overall relations. Second, Beijing should take serious steps to investigate and put a stop to these activities. Finally, we need China to engage with us in a constructive direct dialogue to establish acceptable norms of behavior in cyberspace.

The Chinese must have looked on in wonder that the American government said nothing about the real consequences of China’s behavior. If the U.S. will do “all it must to protect our national networks,” what does the White House intent to do exactly?

Donilon’s admonition was tucked into the middle of a tremendously long discourse on America’s relationship with all of Asia, from North Korea to India. It was not given any special status, which means it has no particular status at all. America might as well drop all of the security measures it has against Chinese hacking and let the hackers dig right in.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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