Owing to the visit of the Chinese President Xi Jinping to the US, the former US Treasury Secretary, Hank Paulson, said that two of the world's largest economies, China and US, need to work together to address cyber security and internet theft in general. He said that if they cannot combat this crime together, it will spiral out of control and hurt the global economy.
Mr. Paulson addressed that the most troublesome issue to the US-China relations is corporate or cyber theft. Over the years, hackers, especially from China, have attacked a lot of US companies' websites that caused significant losses to those companies. The list of attacked websites includes Google, Yahoo, Adobe Systems, etc. How these two countries can work together to make stricter laws and combat cyber theft would be one of the major discussion points when the Chinese President visits the US this week.
Link
http://www.businessinsider.com/hank-paulson-talks-about-cyber-theft-2015-9
Mr. Paulson addressed that the most troublesome issue to the US-China relations is corporate or cyber theft. Over the years, hackers, especially from China, have attacked a lot of US companies' websites that caused significant losses to those companies. The list of attacked websites includes Google, Yahoo, Adobe Systems, etc. How these two countries can work together to make stricter laws and combat cyber theft would be one of the major discussion points when the Chinese President visits the US this week.
Link
http://www.businessinsider.com/hank-paulson-talks-about-cyber-theft-2015-9
9 comments:
I definitely think that it is a priority of the two companies to handle the cyber theft issue immediately and effectively. With the falling Chinese economy coupled with the cyber attacks to the U.S., China is not making itself very appealing to do business with. It is necessary that action is taken right away for the well being of the global economy. If the world's two largest economies have a cyber theft issues, other countries will be scared and reluctant to do business. With corruption out of the way, the economies will be able to function much more efficiently.
I agree with Sophia, Cyber intelligence and security need to be prioritized in this technology era we are currently in. The U.S has had countless cyber breaches in the last 5 years and this trend needs to change. Since the U.S and China have the most advanced economies in the world, they should also have the best programmers in the world. Unfortunately that is not the case and both countries are losing the cyber war. Both countries need to attempt to get ahead of the game and enhance cyber security. If the U.S and China don't change, another country will, and domestic security of these countries will continue to dim.
Cyber theft (and any theft for that matter) is a serious strain on growth and efficiency. These criminals make companies enact really expensive corrections/replacements that the paying customer will ultimately have to pay for. This also mandates that companies put procedures in place that just add more complexity and burdens to our lives.
Cyber theft is a huge issue that keeps on being brought up, but it seems like nothing is being done about it. There have been countless hacks into government databases, including one in the past few days. China is always suspected in taking part in the attacks, but they remain mum or outright denies the charges.
Paulson is 100% right that China and the US, which seem to have the biggest technology sectors, need to agree on a policy that would benefit both countries. The US can strengthen their system, as they should, but there will always be ways to hack into the system.
Another issue is that Russia has hacked into the US system, so if the US and China put up an united front, it might deter Russia from attacking the US.
Cyber theft has been a big issue recent years. It seems hard to find out the person or group behind this. Mr. Xi has denied the involvement of the theft of commercial secrets in any form. I think all countries should stand together on this one and stop cyber theft.
Not only is cyber theft one of the biggest threats to the global economic system, it is also a threat to global and domestic security. Not only does the threat of cyber insecurity make firms and states more skeptical of their business partners, but it puts an incredible amount of important and private information on the line. Could this be the beginning of a new age where cyber warfare replaces the traditional form of war? I definitely agree that China and the US need to cooperate on finding a mutually beneficial solution.
I agree with Lizzy, not only does cyber theft carry significant economic implications for the global economy as a whole, but it also carries serious implications to domestic and international security. With more and more companies dealing with the issue of cyber theft, gross margins have begun to fall and we have begun to see the decline of many companies.
Also, in response to her question: could this be the beginning of a new age where cyber warfare replaces the traditional form of war? Honestly, I think many if not all developed countries are already in that age. Technology has become so intertwined in our everyday lives that many people can simply not live without it. Cyber attacks have already threatened the security of our nation, and I don't think it will stop there.
I think a lot of the problem of cyber theft goes back to the issue of property rights. Often the US is more appealing to many businesses because they know their ideas and inventions will not be copied and sold for their benefit. Many times people are able to find the same products online for free or at a discounted rate, which discredit the integrity of the country. Getting China and the United States together in order to form an agreement will be no small feet in this discussion. Because of this, I think it will have to take on a new revamping potentially down to the core culture of business for each of these countries and the elimination of corruption and addition of property rights to ensure moral integrity.
The issue of cyber security is very serious in business. It definitely needs to be reduced, but property rights is an important reason for the cyber security. This needs to be addressed first. A lot of hackers can hack into systems easily and therefore do so. I believe the United States and China needs to come up with some sort of similar property rights structure to be most effective.
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