(BEIJING) — A U.S. authorities report forward of a gathering between Presidents Donald Trump and Xi Jinping accuses China of stepping up hacking geared toward stealing American expertise as a tariff dispute escalated.

Commerce Consultant Robert Lighthizer’s report displays U.S. skepticism and a potential supply of recent acrimony forward of the assembly in Buenos Aires geared toward defusing the dispute corporations fear will chill international financial development.

The 2 sides have raised import duties on billions of of one another’s items within the battle over U.S. complaints Beijing steals or pressures corporations at hand over expertise.

Chinese language hacking efforts geared toward stealing American expertise and commerce secrets and techniques have “elevated in frequency and class” this yr, stated Lighthizer’s report, issued Tuesday in Washington.

Trump is urgent Beijing to roll again business plans its buying and selling companions say violate its market-opening obligations however that Chinese language leaders see as a path to prosperity and international affect.

These embody “Made in China 2025,” which requires state-led creation of Chinese language champions in robotics and different fields.

American and Chinese language officers have been speaking in preparation for the Trump-Xi assembly and information experiences say Bejiing has despatched written proposals however no particulars have been launched.

Beijing has tried with out success to recruit France, Germany, Japan and different governments as allies towards Trump. They dislike his ways however echo U.S. complaints.

The European Union filed a problem within the World Commerce Group in June to Chinese language insurance policies it stated improperly restrict the flexibility of overseas corporations to regulate and revenue from their expertise.

“China basically has not altered” its expertise coverage “and certainly seems to have taken additional unreasonable actions,” Lighthizer’s report stated.

Assaults by potential “Chinese language state-sponsored entities” towards corporations in cloud computing, synthetic intelligence and different applied sciences elevated since mid-2017, in accordance with Lighthizer.

That embody a “sharp rise” in hacking towards producers within the three months as much as September — “a kind of assault that has been often tied to Chinese language financial espionage,” Lighthizer stated.

China is, together with the US and Russia, considered a number one energy in navy cyber spying.

Xi agreed with Trump’s predecessor, Barack Obama, throughout a go to to the US in 2015 to chorus from utilizing navy assets to steal business secrets and techniques. American officers have accused China of reneging on that settlement.

An indictment unsealed final month fees a Chinese language intelligence officer with attempting to steal expertise from U.S. and European aerospace corporations.

Lighthizer stated China additionally has pressed forward with improperly attempting to accumulate U.S. expertise by covertly buying corporations and different ways.

Contact us at editors@time.com.

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