The Director of National Intelligence James Clapper panned a cybersecurity accord between the US and China that aims to reduce Beijing’s alleged rampant theft of intellectual property, claiming that he has no confidence it will actually work.
Testifying before the Senate Armed Services Committee on Tuesday, where the panel’s chairman Sen. John McCain (R-Ariz.) asked the spy chief if he was “optimistic” that the agreement could reduce Chinese economic espionage, Clapper replied definitively with a simple “no.”
He also said that “hope springs eternal,” but lamented that the lack of penalties on the table if the agreement is violated, and suggested that the threat of economic sanctions, which the administration contemplated in recent weeks ahead of President Xi’s visit, is “illustrative of what would mean something to the Chinese if they transgress.”
As part of the arrangement, the US and China agreed not to steal economic secrets and intellectual property from each other. The two nations also established chains of communications among cabinet-level official and law enforcement to report cybercrimes, and follow-up on investigations.
Sen. Mazie Hirono (D-Hawaii) pushed back against Director Clapper, saying of the agreement, “At least we have a way that we can talk to the Chinese.”
“One hopes that even with a great deal of skepticism going forward that this agreement may create the space for us to have more than a conversation,” Hirono added, which could “lead to some kind of a change in behavior on the part of these state actors.”
“It would be very helpful if of course the Chinese actually live up to what they agree to,” Clapper responded.
Also testifying at the hearing were Deputy Secretary of Defense Robert Work and NSA Director Adm. Michael Rogers.
“I believe this agreement with China is a good first step,” Work told the committee. “We should move to establish norms between nation states.”
The agreement, however, does not restrict intelligence operations against either nation’s governments, like this year’s Office of Personnel Management (OPM) hack, which the administration accused China of carrying out.
Clapper again cautioned lawmakers about posturing too aggressively against Chinese intelligence collection considering the pervasive espionage activities of the US government in that arena.
“People who live in glass house shouldn’t throw rocks,” Clapper told Senators—a remark the director has previously made when discussing US outrage over Beijing’s alleged involvement in the OPM hack.
That comment elicited a sharp reaction from Sen. McCain. “So it’s OK for them to steal out secrets that are most important because we live in a glass house?” he asked rhetorically. “That is astounding.”
“I didn’t not say it’s a good thing,” Clapper shot back. “I’m just saying both nations engage in this.”
