Overnight Cybersecurity: Chinese president to court tech leaders

Welcome to OVERNIGHT CYBERSECURITY, your daily rundown of the biggest news in the world of hacking and data privacy. We’re here to connect the dots as leaders in government, policy and industry try to counter the rise in cyber threats. What lies ahead for Congress, the administration and the latest company under siege? Whether you’re a consumer, a techie or a D.C. lifer, we’re here to give you …

THE BIG STORIES:

–XI IN THE HOUSE: Chinese President Xi Jinping arrived in Seattle today, where he is expected to make remarks at a dinner tonight. The event is part of a two-day West Coast swing seen as a show of force by Beijing that could make the Obama administration’s standing in Silicon Valley appear weak by comparison. China has reportedly done some “arm-twisting” to ensure that leaders from Google, Facebook and other high-profile tech companies RSVP’ed to a tech forum on Wednesday, threatening regulatory scrutiny if they didn’t comply. Depending on who shows up, the forum could be a stark contrast to a much-touted White House cybersecurity conference in April, during which President Obama took his cyber pitch to Silicon Valley and was met with mixed reactions and some notable absences. “It’s going to be fascinating to see which companies, if any, do a similar thing to Xi, who has certainly been worse for cybersecurity and cyber freedoms than anything Obama has done,” said senior Atlantic Council fellow Jason Healey. “Either that means the companies are being hypocritical or it means that Xi is better at using hard power and soft power to force them into showing up.” Experts say the tenor of the discussions at the forum could have an impact on Xi’s meeting with Obama later in the week. If Lu Wei, who oversees cybersecurity and Internet policy in China, tries to pressure companies into agreeing to a slate of controversial new security regulations, Xi may lose any negotiating power China gained by hosting the conference in the first place, and possibly spark a stronger reaction from Obama. To read our full piece, check back Wednesday morning.

{mosads}–WHO, ME?: President Xi spoke out Tuesday morning in a long written interview to The Wall Street Journal, defending China against allegations of both commercial espionage and prejudicial business practices. The day before he is expected to make an appearance at the China-U.S. forum, he pushed back against concerns that new Chinese regulations and restrictions are meant to censor online speech and keep foreign businesses out of the country. “We welcome all foreign companies in China and will respect and protect their lawful rights and interests provided that they abide by the laws and regulations of China and do nothing to undermine China’s national interests and interests of Chinese consumers,” Xi said. The Chinese leader also maintained official claims that China does not hack other nations, either for commercial gain or for intelligence purposes. “Cybertheft of commercial secrets and hacking attacks against government networks are both illegal; such acts are criminal offenses and should be punished according to law and relevant international conventions,” Xi wrote. “We are ready to strengthen cooperation with the U.S. side on this issue.” To read about Xi’s defense of China’s right to regulate the Internet, click here. To read about Xi’s denial of Chinese hacking, click here.

–THE SQUEAKY WHEEL?: The chorus calling for Obama to sanction China over its hacking behavior grew on Tuesday as four Republican senators wrote the White House urging the president to take a hard line with China during President Xi Jinping’s upcoming state visit. “We are concerned that well-documented state-sponsored or state-endorsed [People’s Republic of China] activities have not been met with an appropriate response from the United States,” said the letter, signed by Republican Sens. Cory Gardner (Colo.), John Barrasso (Wyo.), Johnny Isakson (Ga.) and David Perdue (Ga.). The group was not the only cadre of lawmakers to write the White House Tuesday with their concerns about China. Four lawmakers — Senate Finance Committee Chairman Orrin Hatch (R-Utah), ranking member Ron Wyden (D-Ore.), House Ways and Means Committee Chairman Paul Ryan (R-Wis.) and ranking member Rep. Sandy Levin (D-Mich.) — told Obama they are worried that progress is braking in the U.S.-China trade relationship. To read about the first letter, click here. To read about the second letter, click here. And check out our longer piece about GOP anger at Obama’s decision to delay hacking sanctions.

UPDATE ON CYBER POLICY:

–IT WAS COMING EVENTUALLY. The Securities and Exchange Commission (SEC) settled charges Tuesday with an investment adviser that allegedly failed to properly protect its clients’ data in what might be a first-of-its-kind enforcement action.

Although the SEC could find no evidence that R.T. Jones’s clients were financially harmed because of the breach, the agency chose to take action anyway as part of its burgeoning efforts to pressure companies to tighten their cybersecurity.

“As we see an increasing barrage of cyberattacks on financial firms, it is important to enforce the safeguards rule even in cases like this when there is no apparent financial harm to clients,” said Marshall Sprung, co-chief of the SEC Enforcement Division’s Asset Management Unit.

To read our full piece, click here.

LIGHTER CLICK:

–FLORIDA MAN STRIKES AGAIN. Somebody keeps hacking into an electronic road sign in Orlando, Fla., editing its message to warn drivers of free-roaming dinosaurs, compliment their anatomies and suggest new snacks. Read on, here.

WHO’S IN THE SPOTLIGHT:

–HEROES AND VILLAINS. Digital rights advocate Access names its heroes and villains of 2015. Sen. Patrick Leahy (D-Vt.) made the hero list, while British Prime Minister David Cameron was deemed a villain. Find out why, here.

A REPORT IN FOCUS:

–BAD NEWS. Per security firm FireEye: “From Sept. 8 to Sept. 15, 2015, the Forbes.com website was serving content from a third-party advertising service that had been manipulated to redirect viewers,” FireEye reserachers said in a Tuesday blog post. “This type of malicious redirection is known as malvertising, where ad networks and content publishers are abused and leveraged to serve ads that redirect users to malicious sites.”

Check it out here.

A LOOK AHEAD:

THURSDAY

–The Senate Intelligence Committee will hold an open hearing at 2:30 p.m. with testimony from National Security Agency (NSA) Director Adm. Michael Rogers.

IN CASE YOU MISSED IT:

Links from our blog, The Hill, and around the Web.

House Oversight Committee Chairman Jason Chaffetz (R-Utah) is asking for details on the $133 million contract to provide identity theft protection services for those affected by the massive hack at the Office of Personnel Management (OPM). (The Hill)

The federal government has the second-best cybersecurity defenses of any sector, following the financial industry, according to a new report. (The Hill)

There’s no soft landing in Seattle for President Xi as he begins his state visit. (The Washington Post)

Republican presidential hopeful Carly Fiorina said President Xi should not be honored with a White House state dinner. (The Associated Press)

What President Xi wants from his U.S. trip. (National Journal)

The Pentagon is racing to boost its cyber troop size. (NextGov)

Apple is asking developers to verify their developer software following the malware attack on China’s app store. (TechCrunch)

Website performance and security firm CloudFlare has netted $110 million in investment. (The Wall Street Journal)  

Email security provider Mimecast said it was the victim of a cyber attack that prevented some U.S. customers from accessing email on Monday. (Reuters)

If you’d like to receive our newsletter in your inbox, please sign up here: http://goo.gl/KZ0b4A