Yellen Raises Cybersecurity Concerns with China

U.S. Treasury Secretary Janet Yellen expressed serious concerns regarding 'malicious cyber activity' by Chinese state-sponsored actors during a virtual meeting with Chinese Vice Premier He Lifeng, following a breach affecting Treasury Department systems. The incident, discovered last month and linked to a contractor, allowed unauthorized access to some workstations and unclassified documents. Yellen also warned of potential consequences for Chinese companies that support Russia's actions in Ukraine and reiterated U.S. grievances about China's non-market practices and industrial overcapacity. The discussions reflect ongoing tensions in U.S.-China relations, despite efforts to foster cooperation through economic and financial working groups. In response, Beijing has dismissed the allegations as 'groundless,' emphasizing its opposition to hacker attacks and misinformation. The meeting signals a critical juncture as the U.S. anticipates a leadership change with President-elect Donald Trump returning to office.