but that's mainly because

President Xi and I had a very constructive conversation

on a whole range of strategic issues,

from North Korea to cyberspace to international institutions.

And I'm very much looking forward

to continuing the conversation,

not only tonight at dinner but also tomorrow.

But I thought we'd take a quick break just to take a question

from both the U.S. and Chinese press.

So what I'll do is I'll start with Julie Pace

and then President Xi can call on a Chinese counterpart.

The Press: Thank you, Mr. President.

How damaging has Chinese cyber-hacking been to the U.S.?

And did you warn your counterpart about any specific

consequences if those actions continue?

And also, while there are obviously differences between

China's alleged actions and your government's surveillance

programs, do you think that the new NSA revelations undermine

your position on these issues at all during these talks?

And President Xi, did --

President Obama: Why don't you let the interpreter --

The Press: And President Xi, did you acknowledge

in your talks with President Obama

that China has been launching cyber attacks against the U.S.?

Do you also believe that the U.S. is launching

similar attacks against China?

And if so, can you tell us

what any of the targets may have been?

Thank you.

President Obama: Well, Julie, first of all, we haven't had, yet,

in-depth discussions about the cybersecurity issue.

We're speaking at the 40,000-foot level,

and we'll have more intensive discussions

during this evening's dinner.

What both President Xi and I recognize is that

because of these incredible advances in technology,

that the issue of cybersecurity and the need for rules

and common approaches to cybersecurity

are going to be increasingly important

as part of bilateral relationships

and multilateral relationships.

In some ways, these are uncharted waters

and you don't have the kinds of protocols

that have governed military issues,

for example, and arms issues, where nations have a lot

of experience in trying to negotiate what's acceptable

and what's not.

And it's critical, as two of the largest economies

and military powers in the world,

that China and the United States arrive

at a firm understanding

of how we work together on these issues.

But I think it's important, Julie, to get to the second part

of your question, to distinguish between the deep concerns

we have as a government around theft of intellectual property

or hacking into systems that might disrupt those systems --

whether it's our financial systems, our critical

infrastructure and so forth -- versus some of the issues

that have been raised around NSA programs.

When it comes to those cybersecurity issues

like hacking or theft, those are not issues

that are unique to the U.S.-China relationship.

Those are issues that are of international concern.

Oftentimes it's non-state actors

who are engaging in these issues as well.

And we're going to have to work very hard to build a system

of defenses and protections, both in the private sector

and in the public sector,

even as we negotiate with other countries

around setting up common rules of the road.

And as China continues in its development process

and more of its economy is based on research and innovation

and entrepreneurship,

they're going to have similar concerns.

Which is why I believe we can work together on this

rather than at cross-purposes.

Now, the NSA program, as I discussed this morning,

is a very limited issue,

but it does have broad implications

for our society because you've got a lot of data out there,

a lot of communications that are in cyberspace.

And how we deal with both

identifying potential terrorists or criminals,

how the private sector deals with potential theft,

and how the federal government, state governments,

local governments, and the private sector coordinate

to keep out some of these malicious forces

while still preserving the openness

and the incredible power of the Internet and the web

and these new telecommunications systems --

that's a complicated and important piece of business.

But it's different from these issues of theft and hacking.

And every government is then inevitably going to be involved

in these issues, just like big companies

are going to be involved in these issues.

I mean, you've got private companies

that have a lot more data

and a lot more details about people's emails

and telephone calls than the federal government does.

And if we're called upon not only to make sure

that we're anticipating terrorist communications

but we're also called upon to work with the private sector

to prevent theft out of ATMs, et cetera,

then we're going to have to find ways

to deal with this big data

in ways that are consistent with our values;

in ways that protect people's privacy,

that ensure oversight, and strike the right balance.

And as I indicated this morning,

that's a conversation that I welcome having.

President Xi: (as interpreted) As President Obama said,

in our meeting this afternoon

we just briefly touched upon the issue of cybersecurity.

And the Chinese government is firm in upholding cybersecurity

and we have major concerns about cybersecurity.

In the few days before President Obama and I meet today,

I note sharp increased media coverage

of the issue of cybersecurity.

This might give people the sense or feeling that cybersecurity

as a threat mainly comes from China or that the issue

of cybersecurity is the biggest problem

in the China-U.S. relationship.

The application of new technology

is a double-edged sword.

On the one hand, it will drive progress in ensuring better

material and cultural life for the people.

On the other hand, it might create some problems for

regulators and it might infringe upon the rights of states,

enterprises, societies and individuals.

We need to pay close attention to this issue and study ways

to effectively resolve this issue.

And this matter can actually be an area for China

and the United States to work together with each other

in a pragmatic way.

And I'm happy to learn

that within the context of the China-U.S. strategic

and economic dialogue, a working group has been

established to discuss cybersecurity issues.

So this is an issue that the two sides will continue to discuss.

By conducting good-faith cooperation we can remove

misgivings and make information security and cybersecurity

a positive area of cooperation between China and the U.S.

Because China and the United States both have a need

and both share a concern,

and China is a victim of cyber attacks

and we hope that earnest measures

can be taken to resolve this matter.

Thank you.

The Press: I'm with China Central Television

and my question for President Xi is,

what are the main issues that were discussed

in the longer-than-expected meeting this afternoon?

And what are the major areas of consensus

that have emerged from the discussion?

And last year, when you were visiting the United States,

you raised the concept of the two sides working together

to explore what you call a new model of major country

relationship, something that is unprecedented

in the relationship

and that can inspire future generations.

And after this concept was raised,

there has been much discussion and comment on it,

both in China and the United States

and in the world more broadly.

So did you have further discussion on this issue

in your meeting this afternoon?

And my question for President Obama is,

what will the United States do

to contribute to the building of a new model

of major country relationship between China and the U.S.?

President Xi: (as interpreted) In the first meeting

that I've had with President Obama this afternoon,

we had an in-depth, sincere and candid discussion

on the domestic and foreign policies

of China and the United States,

on our joint work to build a new model

of major country relationship,

and our international and regional issues

of mutual interest.

And the President and I reached

important consensus on these issues.

I stated very clearly to President Obama

that China will be firmly committed

to the path of peaceful development

and China will be firm in deepening reform

and opening up the country wider to the world.

China will work hard to realize the Chinese dream

of the great national renewal

and will work hard to push forward the noble cause

of peace and development for all mankind.

By the Chinese dream, we seek to have economic prosperity,

national renewal and people's well-being.

The Chinese dream is about cooperation, development,

peace and win-win,

and it is connected to the American Dream

and the beautiful dreams people in other countries may have.

President Obama and I both believe that in the age

of economic globalization and facing the objective need

of countries sticking together in the face of difficulties,

China and the United States must find a new path --

one that is different

from the inevitable confrontation and conflict

between the major countries of the past.

And that is to say the two sides must work together to build

a new model of major country relationship based on mutual

respect and win-win cooperation for the benefit of the Chinese

and American peoples, and people elsewhere in the world.

The international community

looks to China and the United States to deliver this.

When China and the United States work together,

we can be an anchor for world stability

and the propeller of world peace.

I stand ready to work with President Obama to expand

on all levels of exchanges between the two sides.

I look forward to maintaining close communication

with the President through mutual visits,

bilateral meetings, exchange of letters and phone calls.

And I invited President Obama to come to China

at an appropriate time for a similar meeting like this.

And we look forward to visiting each other country.

At the same time, the two sides will work hard to make progress

in the various bilateral mechanisms,

such as the strategic and economic dialogue

and the high-level consultation on people-to-people exchange.

Also, the Chinese Minister of Foreign Affairs

and the Chinese Minister of National Defense

will both make visits to the United States within the year.

Our two sides should also step up exchanges and cooperation

in economy and trade, energy, environment, people-to-people,

and cultural fields, as well as at the sub-national level,

so that we can deepen the shared interests of the two countries

and expand them to all areas.

We should also improve and strengthen

the military-to-military relationship

between the two countries

and promote the building of a new model

of military relationship between the two sides.

The two sides should also improve coordination on

microeconomic policies so that by strengthening cooperation,

we can contribute to our respective development at home,

and promote strong, sustainable and balanced economic growth

in the Asia Pacific region and the world at large.

And I'm confident in our joint effort to build a new model

of major country relationship.

I believe success hinges on the human effort.

Firstly, both sides have the political