With China seeking to grow its economy and expand its technology base, companies like Facebook, Apple, Google and Twitter are inviting targets. In fact, all have been attacked and all point the finger at China, which has denied any role.
The US government has stepped up efforts to thwart cyber-attacks, but those efforts are mainly focused at protecting its own secrets, especially regarding military operations and technologies.
"To some degree, they were getting a pass," he said. "If a car manufacturer made a car that was routinely able to be stolen, they'd be sued. If software is made with gaps that are a liability, they bear some responsibility, and in recent years there's been a sea change in high tech firms accepting that responsibility."
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Google routinely detects unsafe websites that spread malicious software or trick people into revealing personal information, posting warnings in front of users and contacting webmasters who may have been hacked.
But Chinese hackers have managed to hit even Google, and in a book released this spring, Google's executive chairman Eric Schmidt said China is the world's "most sophisticated and prolific hacker."
Cybersecurity is high on the agenda for the meeting between Obama and Xi on Friday and Saturday in Southern California's Rancho Mirage. A recent government report found nearly 40 Pentagon weapons programs and almost 30 other defense technologies were compromised by cyber intrusions from China.