Chinese cyberattacks on US companies targeting intellectual property are decreasing following meetings between President Obama and Chinese President Xi Jinping. Xi Jinping expressed interest in developing business relationships with US technology companies and maintaining diplomatic relations. Prior to the meetings, cyberattacks from China were already trending downward. Growing domestic economic issues in China are also reducing the priority of cyberattacks.

1. Phillip LiPari, Writing for Intelligence
30 September 2015
Chinese Cyber-attacks on US Private Companies Decreasing
Executive Summary:
Chinese cyberattacks on US companies targeting intellectual property (IP) are likely to decrease
in the wake of Chinese president Xi Jinping`s visit to the US. Xi Jinping expressed interest in
developing relationships with US technology companies as well as retaining diplomatic relations
with the US. In addition to growing domestic concerns in China, there is a downward trend in
Chinese cyber-attacks against the US.
Discussion:
During his visit to the US, Chinese president Xi Jinping participated in talks with President
Obama regarding Chinese cyber-aggression. On 25 September 2015, the US and China
announced a tentative agreement to cease support of cyber-attacks on private companies.1 Xi
Jinping emphasized communication and openness between the nations, claiming sanctions were
detrimental to all involved. DNI James Clapper stated he was not “optimistic” but that the
agreement was a “step in the right direction” between the US and China.2 The agreement will
pressure the Chinese government to acknowledge and respond to accusations of cyber-attacks
rather than ignore them.3
Prior to the meeting between Xi Jinping and President Obama, there was a downward trend in
cyber-attacks originating in China against US companies.4 The full scale of these attacks is
unclear due to the increasingly complex methods of attack.5 Chinese cyber-aggression seems to
be decreasing in the wake of numerous large scale breaches as well as talks between President
Obama and Xi Jinping.
Xi Jinping also met with a number of US technology companies in Seattle, Washington prior to
meeting President Obama. US technology companies are interested in expanding business in
China but are concerned over increasing Chinese economic regulation.6 Forty eight percent of
the Chinese population accesses the internet and roughly 55% of economic transactions occur
via the internet. This increase in internet usage makes China an enticing market to US
technology companies.7 A reduction in cyber-attacks on US private companies reassures
companies of the Chinese government`s interest in expanding their consumer technological
market.
Cyber-attacks are becoming a less critical national interest for the Chinese government due to
concern over the economy and integrity of infrastructure. China is undergoing large scale
overproduction of industrial resources, recently reaching 30% overproduction of resources such
as steel.8 Chinese industrial products have been heavily devalued and remain overstocked. The

2. Chinese Communist Party (CCP) faces criticism over lack of proper safety precautions when it
conflicts with economic expansion, as in the Tianjin chemical explosion.9 These growing
domestic issues could further pull Chinese government resources from cyber-attacks.
Source Reliability: Moderate
Analytic Confidence: Moderate
Analytic Confidence: Analytic confidence is moderate due to the reliability of sources as well
as the use of the ACH structured analytic technique. The analyst collaborated and brainstormed
with a partner. Sources agreed with each other on most content and the deadline was easy to
meet.
With questions or comments, please contact the author:
Email: plipar35@lakers.mercyhurst.edu
Phone: (585) 752-9449
Peer reviewed by Austin Wood
1 http://www.wsj.com/articles/u-s-china-agree-over-cyberattacks-that-steal-company-records-1443205327
2 http://www.chinatopix.com/articles/66326/20150930/senior-american-intelligence-officials-skeptical-china-u-s-
cyber-agreement.htm
3 http://www.reuters.com/article/2015/09/30/us-usa-cybersecurity-idUSKCN0RT1Q820150930
4 http://www.reuters.com/article/2015/09/19/usa-china-cybersecurity-idUSL1N11O11W20150919
5 http://www.nato.int/docu/review/2013/cyber/timeline/EN/index.htm
6 http://www.usatoday.com/story/tech/2015/09/21/china-president-xi-seattle-internet-cyber-security/72425102/
7 http://www.shanghaidaily.com/business/economy/Huge-online-users-make-Internet-vital-in-reshaping-Chinas-
economy/shdaily.shtml
8 http://blogs.reuters.com/great-debate/2015/09/25/as-xi-visits-the-united-states-chinas-economy-is-at-a-tipping-
point/
9 http://www.scientificamerican.com/article/firm-in-china-chemical-blast-skirted-safety-rules/