China pushing 'new model' of ties with the US

CHINA's leader Xi Jinping averted a confrontation during his visit to the United States by agreeing with Barack Obama that each country would refrain from conducting or supporting cyber attacks to steal intellectual property for commercial gain.

China has never admitted to launching cyber attacks but Mr Obama made it clear that Beijing was responsible by telling Mr Xi in public, "such actions have got to stop".

The two countries agreed to set up a cyber dialogue where representatives would meet twice a year. The Americans would inform their Chinese counterparts of any cyber attacks and the Chinese side would look into the allegation. Very likely, China would accuse Americans of attacks too. Mr Obama made it clear that words have to be followed by actions and, he said at a joint press conference, "we will be watching carefully". So a confrontation may just have been delayed.