This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2015/09/23/world/asia/xi-jinping-of-china-to-address-wary-us-business-leaders.html

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
Xi Jinping of China Addresses Wary U.S. Business Leaders Xi Jinping Pledges to Work With U.S. to Stop Cybercrimes
(34 minutes later)
SEATTLE — President Xi Jinping pledged in a speech here on Tuesday night to work with the United States on fighting cybercrimes, saying that the Chinese government was a staunch defender of cybersecurity.SEATTLE — President Xi Jinping pledged in a speech here on Tuesday night to work with the United States on fighting cybercrimes, saying that the Chinese government was a staunch defender of cybersecurity.
“The Chinese government will not in whatever form engage in commercial theft,” he said. Hacking against government networks is a crime, he added, “that must be punished in accordance with the law and relevant international treaties,” Mr. Xi said in an address to American business executives.“The Chinese government will not in whatever form engage in commercial theft,” he said. Hacking against government networks is a crime, he added, “that must be punished in accordance with the law and relevant international treaties,” Mr. Xi said in an address to American business executives.
At the end of his first day of a state visit to the United States, Mr. Xi told his audience, which included Chinese business leaders: “China is ready to set up a high-level joint dialogue mechanism with the United States on fighting cybercrimes.”At the end of his first day of a state visit to the United States, Mr. Xi told his audience, which included Chinese business leaders: “China is ready to set up a high-level joint dialogue mechanism with the United States on fighting cybercrimes.”
The Chinese worked hard to front-load Mr. Xi’s trip — his first to the United States as president — with two days of events in Seattle intended to show an upbeat relationship with American business. And in a broad sense it has worked as a show of force to President Obama about the power that China wields, and how much American companies need China even if its policies do not align with Washington’s.The Chinese worked hard to front-load Mr. Xi’s trip — his first to the United States as president — with two days of events in Seattle intended to show an upbeat relationship with American business. And in a broad sense it has worked as a show of force to President Obama about the power that China wields, and how much American companies need China even if its policies do not align with Washington’s.
Yet frustrations are simmering here.Yet frustrations are simmering here.
The U.S.-China Business Council, one of the hosts of the dinner event, said member confidence about doing business in China had eroded considerably over the past five years.The U.S.-China Business Council, one of the hosts of the dinner event, said member confidence about doing business in China had eroded considerably over the past five years.
In 2010, 58 percent of executives were optimistic about the business outlook in China, while 33 percent were somewhat optimistic, said John Frisbie, the council’s president. Now, just 24 percent of executives surveyed are optimistic about doing business there, and 67 percent are somewhat optimistic or neutral.In 2010, 58 percent of executives were optimistic about the business outlook in China, while 33 percent were somewhat optimistic, said John Frisbie, the council’s president. Now, just 24 percent of executives surveyed are optimistic about doing business there, and 67 percent are somewhat optimistic or neutral.
“American business leaders — especially in the tech sector — are listening to President Xi with tremendous care in hopes of discerning the balance he will strike between the economic promise of new innovations and a preference for enhanced national security controls regardless of marketplace efficiency,” said Daniel H. Rosen, a co-founder of the Rhodium Group, a New York-based advisory firm with expertise on China.“American business leaders — especially in the tech sector — are listening to President Xi with tremendous care in hopes of discerning the balance he will strike between the economic promise of new innovations and a preference for enhanced national security controls regardless of marketplace efficiency,” said Daniel H. Rosen, a co-founder of the Rhodium Group, a New York-based advisory firm with expertise on China.
“Many U.S. firms are at a tipping point as to whether to double down on their investment in China, and the conclusions they reach in reaction to Xi this month may shape their strategies for years to come,” Mr. Rosen added.“Many U.S. firms are at a tipping point as to whether to double down on their investment in China, and the conclusions they reach in reaction to Xi this month may shape their strategies for years to come,” Mr. Rosen added.
The U.S. Chamber of Commerce said in a recent submission to the Obama administration that although China represented a $600 billion market for American companies, it “should be more.”The U.S. Chamber of Commerce said in a recent submission to the Obama administration that although China represented a $600 billion market for American companies, it “should be more.”
The chamber said a number of Chinese laws functioned as barriers to market access, effectively deterring American businesses from competing against Chinese enterprises. They include a new law that says national security must take primacy in all fields, from culture to cyberspace.The chamber said a number of Chinese laws functioned as barriers to market access, effectively deterring American businesses from competing against Chinese enterprises. They include a new law that says national security must take primacy in all fields, from culture to cyberspace.
A bilateral investment treaty designed to open up markets that was supposed to be discussed during talks in Washington this week may get only cursory attention because it is not close to completion despite two recent rounds of negotiations, Chinese and American officials said.A bilateral investment treaty designed to open up markets that was supposed to be discussed during talks in Washington this week may get only cursory attention because it is not close to completion despite two recent rounds of negotiations, Chinese and American officials said.
The concerns in the business community are intensified, the business council said, because of the size of China’s economy.The concerns in the business community are intensified, the business council said, because of the size of China’s economy.
“Even if China were to grow 6 percent a year over the next decade, that would add two Germanys to China’s G.D.P., so that’s the kind of scale we’re at,” Mr. Frisbie said.“Even if China were to grow 6 percent a year over the next decade, that would add two Germanys to China’s G.D.P., so that’s the kind of scale we’re at,” Mr. Frisbie said.
In written answers to questions submitted by The Wall Street Journal before his departure from China, Mr. Xi said that although economic growth was slowing, the “Chinese economy is still operating within the proper range.”In written answers to questions submitted by The Wall Street Journal before his departure from China, Mr. Xi said that although economic growth was slowing, the “Chinese economy is still operating within the proper range.”
Mr. Xi skirted a question from The Journal about new Chinese laws that unfairly targeted American information technology companies, like Cisco, by favoring their Chinese competitors.Mr. Xi skirted a question from The Journal about new Chinese laws that unfairly targeted American information technology companies, like Cisco, by favoring their Chinese competitors.
China has maintained that disclosures of American espionage from Edward J. Snowden, the former National Security Agency contractor, are sufficient reason for the country to wean itself off foreign technology.China has maintained that disclosures of American espionage from Edward J. Snowden, the former National Security Agency contractor, are sufficient reason for the country to wean itself off foreign technology.
Two weeks before Mr. Xi’s arrival, one of his closest aides, Meng Jianzhu, the head of domestic security, visited Washington to deal with the administration’s accusations that China was responsible for massive cyberattacks on American businesses and government agencies. The Chinese deny the administration’s claims.Two weeks before Mr. Xi’s arrival, one of his closest aides, Meng Jianzhu, the head of domestic security, visited Washington to deal with the administration’s accusations that China was responsible for massive cyberattacks on American businesses and government agencies. The Chinese deny the administration’s claims.
The meetings failed to reach a concrete agreement that the administration had hoped for on how to deal with cyberattacks, particularly the theft of trade secrets from American companies that benefit their Chinese competitors, according to a senior administration official.The meetings failed to reach a concrete agreement that the administration had hoped for on how to deal with cyberattacks, particularly the theft of trade secrets from American companies that benefit their Chinese competitors, according to a senior administration official.
After Mr. Meng’s return to Beijing, an assistant foreign minister, Zheng Zeguang, also made it clear in a news briefing before Mr. Xi’s departure that little had been achieved on curbing cybertheft in commercial and government spheres.After Mr. Meng’s return to Beijing, an assistant foreign minister, Zheng Zeguang, also made it clear in a news briefing before Mr. Xi’s departure that little had been achieved on curbing cybertheft in commercial and government spheres.
Speaking in general terms but offering little specifics, Mr. Zheng said: “China is a country with the most Internet users in the world, and the U.S. has the most advanced cyber capabilities, so the two are facing a severe common challenge and we have vast common interests in safeguarding cybersecurity.”Speaking in general terms but offering little specifics, Mr. Zheng said: “China is a country with the most Internet users in the world, and the U.S. has the most advanced cyber capabilities, so the two are facing a severe common challenge and we have vast common interests in safeguarding cybersecurity.”
Mr. Xi arrived in Seattle on Tuesday morning on an Air China Boeing 747-400 aircraft, landing at Paine Field adjacent to a Boeing manufacturing complex 30 miles from the city center. He will visit the Boeing plant on Wednesday.Mr. Xi arrived in Seattle on Tuesday morning on an Air China Boeing 747-400 aircraft, landing at Paine Field adjacent to a Boeing manufacturing complex 30 miles from the city center. He will visit the Boeing plant on Wednesday.
Accompanied by his wife, Peng Liyuan, a large squadron of aides, senior government officials and nearly two dozen journalists from Chinese state news media, he was welcomed by the governor of Washington, Jay Inslee.Accompanied by his wife, Peng Liyuan, a large squadron of aides, senior government officials and nearly two dozen journalists from Chinese state news media, he was welcomed by the governor of Washington, Jay Inslee.
He then headed to a downtown hotel to meet with a group of governors from Western states, including Jerry Brown of California. Afterward, he prepared for the dinner, scheduled to begin early to accommodate Jewish guests who wanted to attend prayers marking the start of Yom Kippur at sundown.He then headed to a downtown hotel to meet with a group of governors from Western states, including Jerry Brown of California. Afterward, he prepared for the dinner, scheduled to begin early to accommodate Jewish guests who wanted to attend prayers marking the start of Yom Kippur at sundown.
On Wednesday, Mr. Xi will take part in a round-table discussion among Chinese and American executives arranged by the Paulson Institute, a research group run by a former Treasury secretary, Henry M. Paulson Jr.On Wednesday, Mr. Xi will take part in a round-table discussion among Chinese and American executives arranged by the Paulson Institute, a research group run by a former Treasury secretary, Henry M. Paulson Jr.
Mr. Xi will also meet with more than a dozen business leaders, including the head of General Motors, Mary T. Barra, and Warren Buffett of Berkshire Hathaway. Apple’s chief executive, Timothy D. Cook, whose company is doing spectacularly well in China — the company’s revenues are expected to soon surpass those in the United States — is also scheduled to be there.Mr. Xi will also meet with more than a dozen business leaders, including the head of General Motors, Mary T. Barra, and Warren Buffett of Berkshire Hathaway. Apple’s chief executive, Timothy D. Cook, whose company is doing spectacularly well in China — the company’s revenues are expected to soon surpass those in the United States — is also scheduled to be there.