Schumer presses Froman to file trade case against China over cyber spying

 

A top Senate Democrat called on U.S. Trade Representative Michael FromanMichael FromanUS wins aerospace subsidies trade case over the EU US wins solar case over India at WTO US, EU set next round of trade talks for early October MORE to file a case against China over its cyber spying.

Sen. Charles SchumerCharles SchumerOvernight Tech: Tech pushes for debate spotlight | Disney may bid for Twitter | Dem seeks Yahoo probe Saudis hire lobbyists amid 9/11 fight Consumer bureau remains partisan target after Wells Fargo settlement MORE (N.Y.) urged Froman on Thursday to file a case against Beijing at the World Trade Organization (WTO) in response to cyberattacks on U.S. businesses.

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"The sanctioning of these attacks, in which Chinese military officials have illegally gathered corporate information from members of the U.S. solar, nuclear and metal industries is a threat not just to these specific companies, but to our entire economy," Schumer wrote.

On Monday, the Justice Department issued criminal indictments on five members of the Chinese People’s Liberation Army for online theft of trade secrets from U.S. firms.

"The Obama Administration has been vigilant in enforcing the trade rights of American businesses, farmers and workers, including with respect to China," a USTR spokesman told The Hill.

"We will continue to explore all avenues to ensure that we hold China to account for trade agreement violations."

Schumer said that since China won't extradite those involved to go on trial here, U.S. government officials have to seek damages through a WTO suit.

"Cyber-attacks from China and other nations could prove crippling to American businesses in the years to come, so we need real teeth in our response,” Schumer said.

"DOJ did the right thing in filing these indictments, but the only way to really punish China for these outrageous attacks is through the WTO."

In the letter, Schumer notes that the agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) contained in the WTO requires each participating nation to protect trade secrets.

He said the United States has to show that this type of "behavior is unacceptable and will have serious consequences."

This story was updated at 10:05 p.m.