Yellen Raises Cybersecurity Concerns with China

U.S. Treasury Secretary Janet Yellen met virtually with Chinese Vice Premier He Lifeng to express serious concerns regarding malicious cyber activities attributed to state-sponsored actors from China, following a significant breach involving the Treasury Department's contractor, BeyondTrust. The breach resulted in the theft of unclassified documents, prompting bipartisan calls for detailed briefings from the Treasury. Yellen reiterated that China's non-market practices and industrial overcapacity pose ongoing threats to the U.S.-China economic relationship, stressing the need for constructive dialogue to address these issues. Additionally, she warned that Chinese firms supporting Russia in its conflict with Ukraine would face serious repercussions. The meeting aimed to strengthen communication amidst rising tensions over cybersecurity and trade practices. Both parties acknowledged the importance of continued engagement to manage their complex bilateral relationship.