Chinese Economic Cyber Espionage -- U.S. Litigation in the WTO and Other Diplomatic Remedies.

Abstract

Countering Chinese economic cyber espionage is one of the most complex challenges of contemporary U.S. foreign policy.The Chinese government’s systematic hacking into the computer networks of companies to gain commercial advantages for Chinese firms has resulted in "the greatest transfer of wealth in history." Fundamentally, Chinese economic cyber espionage compromises the competitiveness of U.S. firms in China and globally. It is integral to China's mercantilist economic and trade policies.Fortunately, a creative legal response is available to counter this threat. The most promising and immediate remedy for the United States is to launch litigation against China in the World Trade Organization (WTO) dispute resolution system, relying on the TRIPS Agreement. Additionally, the United States should convene a general diplomatic conference to propose general rules for the cyber domain and international agreements to reflect these rules.