US Treasury Secretary Janet Yellen has turned up the heat on Beijing, flagging “malicious cyber activity” allegedly tied to Chinese state-sponsored hackers. Her remarks, delivered during a virtual meeting with Chinese Vice Premier He Lifeng, came on the heels of a cyberattack that breached Treasury Department systems back in December. The hack exposed workstations and unclassified documents, casting a long shadow over bilateral ties.
Yellen didn’t mince words, expressing “serious concern” over what she described as a clear threat to US-China relations. The Treasury’s statement suggested this breach could deepen mistrust between the world’s two largest economies, a relationship already walking a tightrope. Beijing, however, has brushed off the allegations, labeling them “groundless” and dismissing them as politically motivated finger-pointing.
China’s foreign ministry insists it opposes all forms of hacking, countering that these accusations are nothing more than smoke and mirrors. But with President-elect Donald Trump preparing to return to the White House, the diplomatic waters between Washington and Beijing may only get choppier. Trump’s prior term saw a tit-for-tat tariff war, and the stage seems set for another showdown.
Beyond cybersecurity, Yellen pressed Beijing on its “non-market policies” and industrial overcapacity, which she warned could be a millstone around bilateral relations. Despite the sharp exchanges, both sides acknowledged the need for open channels of communication.
For now, the dialogue continues, but the cyber breach has underscored the fragile trust in a relationship already fraught with challenges.
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