WASHINGTON, D.C. (Press Release) — U.S. Senator Charles E. Schumer called on U.S. Trade Representative Michael Froman on Thursday, May 22, to file suit against China at the World Trade Organization in response to Chinese cyber-attacks on American businesses. Earlier this week, the U.S. Department of Justice indicted five members of the Chinese People’s Liberation Army for cyber-attacks that included theft of sensitive, internal documents in an effort to help Chinese companies out-maneuver American companies in business negotiations. Due to China’s refusal to extradite these individuals, it is unlikely they’ll ever face trial in the United States. In order to ensure that China is punished for sanctioning cyber-attacks on American businesses, Schumer is calling on the U.S. government 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,” said Schumer. “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. The U.S. should immediately file suit to seek damages for these attacks, to show China and other countries that might cyber-attack U.S. business that this behavior is unacceptable and will have serious consequences.”
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. In the recently unsealed indictment, the 5 members of the Chinese PLA are accused of hacking into internal networks of Alcoa, United States Steel Corporation and other American businesses, and stealing sensitive documents including emails from senior company officials. The Chinese military has repeatedly conducted cyber espionage against the United States. According to a report by Mandiant, a cyber-security firm, one group with alleged ties to the PLA has attacked 141 firms, across 20 different industries, in the last 8 years. Schumer argues these cyber-attacks are a clear violation of the TRIPS and that the U.S. Trade Representative should file suit at the WTO to punish China’s sanctioning of cyber-attacks.
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Preceding provided by Senator Charles Schumer of New York