US Treasury Secretary Janet Yellen expressed serious concerns to China over malicious cyber activities by state-sponsored actors, following a cyberattack on the US Treasury Department.
The breach, disclosed last week, occurred in December and allowed unauthorized access to certain workstations and unclassified documents. In a virtual meeting with Chinese Vice Premier He Lifeng, Yellen highlighted the implications of such activities on the fragile US-China relationship.
China Denies Accusations
China has denied allegations that state-sponsored actors were behind the breach, labeling the claims as “groundless.” The Chinese Foreign Ministry reiterated Beijing’s opposition to all forms of cyberattacks and criticized the accusations as politically motivated.
Yellen’s remarks come at a time of heightened tension between the world’s two largest economies, with cybersecurity adding another layer of strain to the bilateral relationship.
Impact on US-China Relations
Yellen emphasized that these cyber activities could negatively impact bilateral ties, adding to existing friction over China’s industrial practices and non-market policies. The US Treasury’s statement underscored the need for addressing industrial overcapacity to avoid further strain on economic ties.
Efforts Toward Communication
Despite the tensions, both sides agreed on the importance of maintaining communication. Yellen and He also reviewed progress made by joint economic and financial working groups established to address mutual concerns.
A Changing Political Landscape
Yellen’s warning comes shortly before President-elect Donald Trump returns to the White House. His previous term saw an intense trade war with China, raising concerns about potential economic escalations under his leadership.
Key Takeaways
- The US Treasury Department reported a cyberattack attributed to Chinese state-sponsored actors.
- Yellen expressed her concerns to China and highlighted the risks to bilateral relations.
- Beijing has dismissed the allegations, calling them unfounded.
- Both nations stress the importance of dialogue, despite mounting tensions.
As global economies face interconnected challenges, cybersecurity and industrial practices remain critical areas that could shape the future of US-China relations.
