Tag Archives: United States

U.S. sanctions Cuban security minister, special forces unit over protest crackdown

By Matt Spetalnick and Daphne Psaledakis

WASHINGTON (Reuters) -The United States on Thursday imposed sanctions on a Cuban security minister and an interior ministry special forces unit for alleged human rights abuses in a crackdown on anti-government protests earlier this month.

The move marked the first concrete steps by President Joe Biden’s administration to apply pressure on Cuba’s Communist government as it faces calls from U.S. lawmakers and the Cuban-American community to show greater support for the biggest protests to hit the island in decades.

The speed with which the administration has crafted new sanctions further signals Biden is highly unlikely to soften the U.S. approach to Cuba any time soon after his predecessor, Donald Trump, rolled back a historic Obama-era détente with Havana.

“This is just the beginning,” Biden said in a statement, expressing condemnation for “mass detentions and sham trials.”

“The United States will continue to sanction individuals responsible for oppression of the Cuban people,” he said.

Cuban Foreign Minister Bruno Rodriguez, in a message on Twitter, rejected the sanctions as “unfounded and slanderous” and urged the United States to apply such measures to its own record of “daily repression and policy brutality.”

The Treasury Department said the sanctions had been placed on an entire Interior Ministry security unit and on General Alvaro Lopez Miera, minister of the Revolutionary Armed Forces, describing him as leader of an entity “whose members have engaged in serious human rights abuse.”

Thousands of Cubans staged protests a week ago to demonstrate against an economic crisis that has brought shortages of basic goods and power outages. They were also protesting the government’s handling of the coronavirus pandemic and curbs on civil liberties. Hundreds of activists were detained.

Biden had promised during the 2020 campaign to reverse some of Trump’s Cuba policies, but Thursday’s announcement suggests little appetite for a return to rapprochement.

At the same time, the administration is still seeking ways to ease the humanitarian plight of the Cuban people.

The White House said on Tuesday that Biden would form a working group to examine remittances to Cuba in the wake of the protests. The aim is to determine how Cuban-Americans can send money to families on the island while keeping the funds out of the hands of the Cuban government.

Trump had imposed tight restrictions on remittances, which are believed to have previously amounted to several billions of dollars annually.

The White House, in a statement, cautioned that the remittances issue was complex and “requires a measured and thoughtful approach in coordination with experts.”

Biden reiterated on Thursday that his administration is looking for ways to help ordinary Cubans regain internet access after Havana restricted access to social media and messaging platforms including Facebook and WhatsApp.

“We will work closely with our partners throughout the region, including the Organization of American States, to pressure the regime,” Biden said.

The Cuban government has blamed the protests mostly on what it calls U.S.-financed “counter-revolutionaries” exploiting economic hardship caused by U.S. sanctions.

GLOBAL MAGNITSKY SANCTIONS

The sanctions were imposed under the Global Magnitsky Act, used to punish human rights violators with U.S. asset freezes and bans on travel to the United States.

But U.S. officials have acknowledged that Cuban officials rarely have U.S. financial dealings and seldom travel to the United States, limiting the practical impact of such measures.

The unrest appears to have injected a new sense of urgency into Biden’s broad Cuba policy review, which began shortly after he took office in January. Until now, Cuba had not been treated as a top agenda item while the administration dealt with the economic recovery and coronavirus pandemic at home and challenges such as China, Russia and Iran abroad.

Cuba, a State Department official told Reuters, is now a “top priority.”

Analysts say conciliatory moves are unlikely in the near term. Complicating matters was Biden’s poorer-than-expected showing with voters in south Florida’s anti-communist Cuban-American community, which backed Trump’s tough policies toward Havana and Caracas and helped him win the battleground state.

Many analysts say Biden may have to tread carefully on Cuba policy ahead of the 2022 congressional elections.

(Reporting By Matt Spetalnick and Daphne Psaledakis, additional reporting by Jarrett Renshaw and Doina Chiacu in Washington and Sarah Marsh and Marc Frank in Havana; Editing by Dan Grebler, Cynthia Osterman and Sonya Hepinstall)

U.S. retailers scramble to stock shelves as kids head back to school

By Lisa Baertlein and Joyce Philippe

LOS ANGELES/NEW YORK (Reuters) -At Stationery and Toy World, a family-owned shop in New York’s Upper West Side, manager Gary Rowe is having difficulty getting all the pens and folders he ordered for the important back-to-school season.

His usual vendors have low stocks of Pilot’s erasable FriXion pens and Paper Mate Flair marker pens – and prices are high on stationery and other in-demand school supplies.

And Rowe is not alone, retailers are navigating a storm of challenges – higher production costs, cargo delays from China and other Asian countries, and sky-high shipping rates – as they gear up for the industry’s second-biggest selling season.

“I’m hoping that when everything catches up, we get more stock,” Rowe said at his store packed wall-to-wall with a colorful array of pens and markers. “Business has been really slow.”

After a year of keeping their kids at home, parents are eager for classes to start again.

Stimulus checks and advance child tax credits from U.S. President Joe Biden’s administration are expected to boost sales of back-to-school merchandise, especially shoes and clothing, following last year’s outlays on laptops, headphones and other equipment for remote learning. The National Retail Federation expects total back-to-school spending to rise 6.4% to $108.1 billion this year. Average spending for all age groups is forecast to be $2,049, up 10.8%.

But following retailers’ moves to prune inventories, shoppers may find fewer discounts, smaller markdowns and less merchandise in stores. Retailers “just don’t know how much to stock,” said Stacy DeBroff, founder of marketing data firm Influence Central, which works with retailers such as JCPenney, Dick’s Sporting Goods and Skechers. “There continues to be lingering supply-side issues because manufacturing was done abroad,” DeBroff said. JCPenney, Dick’s Sporting Goods and Skechers declined to comment on inventory.

Some – most likely bigger retailers – will have stored away backpacks and other products from last year that did not sell, said Matt Kramer, KPMG’s consumer and retail national sector leader. “I think they’re being very careful about giving further discounts as their inventory starts to dwindle,” Kramer said.

Macy’s worked to bring in denim clothes, school uniforms and small electronics, Chief Financial Officer Adrian Mitchell said at a recent investor conference. “We believe it’s better to potentially lose a sale due to the lack of supply than to over buy and have markdown merchandise at higher rates,” Mitchell said.

Target started putting backpacks on its sales floors much earlier this year, around the end of May, a month or more earlier than usual, data firm StyleSage said. Target told Reuters the introduction was inline with other years, and that it is working with partners to manage and move inventory faster than ever.

“We’re still moving backpacks and crayons,” said Brett Rose, chief executive officer at United National Consumer Suppliers, a wholesale distributor whose retail clients include Walmart’s Sam’s Club, Amazon and Five Below.

Rose said he is usually finished bringing such products in by May or June – at the latest.

During the second quarter, retailers imported lower volumes of popular back-to-school items compared with the same period in 2019, before the pandemic, according to S&P Global Market Intelligence’s trade data firm Panjiva. For instance, retailers’ imports of backpacks, up 9.8% versus the second quarter of 2020, were 15.2% lower than the same period in 2019, Panjiva said. Imports of kids’ shoes and clothing, up 64.4% versus 2020, were 12.6% below the amount imported during the same period in 2019.

Overall, retailers so far have marked down a smaller proportion of backpacks, and discounts are smaller on average, according to the data firm StyleSage. It sees similar patterns in other clothing categories.

Experts say back-to-school may offer a preview of what to expect at Christmastime as retailers pare offerings to limit risk.

(Reporting by Lisa Baertlein and Joyce Philippe; Additional reporting by Richa Naidu in Chicago; Editing by Lisa Shumaker and Steve Orlofsky)

Factbox-Five ways fraudsters try to claim U.S. unemployment benefits

By Paresh Dave

(Reuters) – The U.S. government’s preliminary “conservative” estimates show improper unemployment benefits payments during the pandemic could exceed $87 billion nationwide.

Here are some of the tactics people with stolen identities have attempted to siphon funds.

MASKS

Twenty-seven states have adopted a system from ID.me requiring applicants to take pictures of themselves and their photo IDs, which are then compared against each other using software from ID.me.

But ID.me says some users have tried to fool the system by wearing costume masks, some with wrinkles, beards or other distinctive features.

PHOTO TRICKS

Carlos Moran, a former ID.me contractor who reviewed applicants for several months, said he saw purported Social Security cards with the wrong fonts, driver’s licenses with expiration dates clearly altered with photo-editing software and photos of applicants that were actually just a screengrab of someone else’s online selfies.

EMAIL MANIUPLATION

To avoid creating hundreds of fake email accounts, fraudsters try to use features of Gmail and Yahoo email systems. Gmail properly directs email regardless of where periods are placed in a Gmail address. A similar issue arises with “+” in Gmail addresses and a “-” in Yahoo addresses. Some fraudsters also use the period trick on physical addresses, aiming to evade systems that detect too many claims from the same location.

PROXY SERVERS

With many states now checking on the location of users’ devices, people have taken to use virtual private networking software to pretend they are applying from an area that would make sense.

FAKE WEBPAGES

Hackers have gone as far as texting or emailing identity theft victims with phishing links, hoping to trick them into taking a selfie or revealing login information for government benefits systems. Some even have created fake job listings to draw information.

(Reporting by Paresh Dave; editing by Edward Tobin)

U.S. life expectancy falls to lowest level in almost 20 years due to COVID-19 – CDC

By Dania Nadeem

(Reuters) – Life expectancy in the United States fell by a year and a half in 2020 to 77.3 years, the lowest level since 2003, primarily due to the deaths caused by the COVID-19 pandemic, a U.S. health agency said on Wednesday.

It is the biggest one-year decline since World War Two, when life expectancy fell 2.9 years between 1942 and 1943, and is six months shorter than its February 2021 estimate, the U.S. Centers for Disease Control and Prevention (CDC) said.

“Life expectancy has been increasing gradually every year for the past several decades,” Elizabeth Arias, a CDC researcher who worked on the report, told Reuters. “The decline between 2019 and 2020 was so large that it took us back to the levels we were in 2003. Sort of like we lost a decade.”

Deaths from COVID-19 contributed to nearly three-fourths, or 74%, of the decline and drug overdoses were also a major contributor, the CDC said.

The CDC’s National Center for Health Statistics (NCHS) last week released interim data showing that U.S. drug overdose deaths rose nearly 30% in 2020.

The latest CDC report is based on provisional mortality data for January through December of 2020.

Racial, gender and ethnic disparities worsened during the period, the report said. Life expectancy for Black people fell by 2.9 years to 71.8 in 2020, the lowest level since 2000. Life expectancy for Hispanic males dropped 3.7 years to 75.3, the largest decline of any group.

Disparity in life expectancy between men and women also widened in 2020, with women now expected to live 80.2 years, or 5.7 years longer than men – six months more than foreseen in 2019.

The data represents early estimates based on death certificates received, processed, and coded but not finalized by the NCHS.

(Reporting by Dania Nadeem; Additional reporting by Trisha Roy in Bengaluru; editing by Caroline Humer and Steve Orlofsky)

U.S., Germany deal on Nord Stream 2 pipeline draws ire of lawmakers in both countries

By Andrea Shalal and Andreas Rinke

WASHINGTON (Reuters) – The United States and Germany will unveil a deal on Wednesday that maps out consequences for Russia if it uses the Nord Stream 2 gas pipeline to harm Ukraine or other Eastern European countries, but the deal faces opposition in both countries.

The agreement, hammered out by senior U.S. and German officials and first reported by Reuters on Monday, will resolve a long-standing dispute over the $11 billion pipeline, now 98% complete, being built under the Baltic Sea to carry gas from Russia’s Arctic region to Germany.

U.S. officials continue to oppose the pipeline, but say the accord would mitigate the possibility of Russia using energy as a weapon against Ukraine and other countries in the region.

Sources said Germany also agreed to take potential unspecified actions against Russia if it cut off energy supplies to Ukraine, in addition to seeking European Union sanctions, but details about those actions – or what specific behavior by Russia would trigger them – were not immediately available.

Germany would also contribute to a new $1 billion fund aimed at improving Ukraine’s energy independence, including through investments in green hydrogen, according to the sources.

Reports about the agreement drew immediate jeers from lawmakers in both Germany and the United States.

Republican Senator Ted Cruz, who has been holding up President Joe Biden’s ambassadorial nominations over his concerns about Nord Stream 2, said the reported agreement would be “a generational geopolitical win for Putin and a catastrophe for the United States and our allies.”

Cruz and other lawmakers are furious at Biden for waiving congressionally mandated sanctions against the pipeline.

The agreement will avert, for now, the resumption of sanctions against Nord Stream 2 AG and its chief executive. Biden waived those sanctions in May to allow time for both sides to negotiate a way forward.

Some U.S. lawmakers have already introduced an amendment that would prevent the Biden administration from continuing to waive the sanctions, although the prospects for passage remain uncertain.

U.S. officials have sought to reassure lawmakers that the Biden administration will reserve the right to use sanctions on a case-by-case basis, in line with U.S. law.

In Germany, top members of the environmentalist Greens party, called the reported agreement “a bitter setback for climate protection” that would benefit Russian President Vladimir Putin and weaken Ukraine.

“At a time when Putin is putting massive rhetorical and military pressure on Ukraine and once again questioning the country’s sovereignty, Washington and Berlin are sending the wrong signals to Moscow,” said Oliver Krischer, vice-chairman of the party’s parliamentary group, and Manuel Sarrazin, spokesman for Eastern European policy.

(Reporting by Andrea Shalal, Andreas Rinke and Simon Lewis; Editing by Andrea Ricci)

U.S extends travel restrictions at Canada, Mexico land borders through Aug. 21

By David Shepardson

WASHINGTON (Reuters) – U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least Aug. 21, the U.S. Homeland Security Department said on Wednesday.

The 30-day extension came after Canada announced Monday it will start allowing fully-vaccinated U.S. visitors into the country on Aug. 9 for non-essential travel after the COVID-19 pandemic forced an unprecedented 16-month ban that many businesses complained was crippling them.

One difficult question for the Biden administration is whether it would follow Canada’s lead and require all visitors to be vaccinated for COVID-19 before entering the United States, sources briefed on the matter told Reuters.

The White House plans a new round of high-level meetings to discuss the travel restrictions and the potential of mandating COVID-19 vaccines, but no decisions have been made, the sources said.

In early June, the White House launched interagency working groups with the European Union, Britain, Canada, and Mexico to look at how to eventually to lift restrictions.

Businesses in Canada and the United States, particularly the travel and airline industries, pushed for an end to restrictions on non-essential travel between the two countries, which were imposed in March 2020 at the beginning of the pandemic.

Since then, the land border has been closed to all non-essential travel. However, the United States has allowed Canadians to fly in, while Canada has not allowed Americans to do the same.

The United States has continued to extend the restrictions on Canada and Mexico on a monthly basis since March 2020.

Airlines and others have urged the administration to lift restrictions covering most non-U.S. citizens who have recently been in Britain, the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil.

(Reporting by David Shepardson; Editing by Steve Orlofsky)

U.S. housing starts rise, building permits fall to eight-month low

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. homebuilding increased more than expected in June, but permits for future home construction fell to an eight-month low, likely reflecting uncertainty caused by expensive building materials as well as shortages of labor and land.

The report from the Commerce Department on Tuesday suggested that a severe shortage of houses, which has boosted prices and sparked bidding wars across the country, could persist for a while. Demand for houses is being driven by low mortgage rates and a desire for more spacious accommodations during the COVID-19 pandemic.

Though lumber prices are coming down from record highs, builders are paying more for steel, concrete and lighting, and are grappling with shortages of appliances like refrigerators.

“Reports of multi-month delays in the delivery of windows, heating units, refrigerators and other items have popped up across the country, delaying delivery of homes and forcing builders to cap activity, and many builders continue to point to a shortage of available workers as a separate challenge,” said Matthew Speakman, an economist at Zillow.

Housing starts rose 6.3% to a seasonally adjusted annual rate of 1.643 million units last month. Data for May was revised down to a rate of 1.546 million units from the previously reported 1.572 million units. Economists polled by Reuters had forecast starts would rise to a rate of 1.590 million units.

Despite last month’s increase, starts remained below March’s rate of 1.737 million units, which was the highest level since July 2006. Homebuilding increased in the West and the populous South, but fell in the Northeast and Midwest.

Single-family starts rose 6.3% to a rate of 1.160 million units. The volatile multi-family homebuilding category advanced 6.2% to a pace of 483,000 units.

Starts increased 29.1% on a year-on-year basis in June.

Permits for future homebuilding fell 5.1% to a rate of 1.598 million units in June, the lowest level since October 2020. Permits are now lagging starts, suggesting that homebuilding will slow in the coming months.

U.S. stocks opened higher after Monday’s sharp selloff. The dollar gained versus a basket of currencies. U.S. Treasury yields fell.

BUILDERS CAUTIOUS

While lumber futures have dropped nearly 70% from a record high in early May, softwood lumber prices increased 125.3% on a year-on-year basis in June, according to the latest producer price data.

There are also signs that the exodus to suburbs and other low-density areas in search of larger homes for home offices and schooling is gradually fading as vaccinations allow companies to recall workers back to offices in city centers. Rising COVID-19 infections among unvaccinated Americans also pose a risk to the housing market outlook.

“Builders are more cautious and taking out fewer permits for new construction as the earlier confidence during the economy’s reopening has started to falter,” said Chris Rupkey, chief economist at FWDBONDS in New York.

The supply of previously-owned homes is near record lows, leading to double-digit growth in the median house price.

A survey from the National Association of Home Builders on Monday showed confidence among single-family homebuilders fell to an 11-month low in July. The NAHB noted that “builders continue to grapple with elevated building material prices and supply shortages, particularly the price of oriented strand board, which has skyrocketed more than 500 percent above its January 2020 level.”

Homebuilders and a group of other stakeholders met last Friday with White House officials, including Commerce Secretary Gina Raimondo and Housing and Urban Development Secretary Marcia Fudge, to discuss strategies to address the short-term supply chain disruptions in the homebuilding sector.

Building permits fell in all four regions in June. Single-family permits dropped 6.3% to a rate of 1.063 million units. Permits for multifamily housing slipped 2.6% to a rate of 535,000 units.

Housing completions fell 1.4% to a rate of 1.324 million units last month. Single-family home completions declined 6.1% to a rate of 902,000 units, the lowest level since October.

Realtors estimate that single-family housing starts and completion rates need to be in a range of 1.5 million to 1.6 million units per month to close the inventory gap.

The stock of housing under construction rose 1.8% to a rate of 1.359 million units last month.

(Reporting by Lucia MutikaniEditing by Chizu Nomiyama and Paul Simao)

U.S. coronavirus cases rise, fueling fears of resurgence

By Maria Caspani

NEW YORK (Reuters) – A rapid increase in coronavirus cases in the United States and abroad is fueling fears of a pandemic resurgence and sending shockwaves through the stock market as the highly contagious Delta variant takes hold and vaccinations lag in several states.

Largely due to outbreaks in parts of the country with low vaccination rates, the number of new cases, hospitalizations and deaths due to COVID-19 have been on the rise in recent weeks.

The vaccines work against the Delta variant, but lab tests have shown them to be less effective than they were against the original form of coronavirus.

Studies have also shown that two shots of the Pfizer/BioNTech vaccine and of the AstraZeneca vaccine are much more effective than one shot against being infected with the virus, making it more important for people to be fully vaccinated.

Concerns the outbreaks could derail an economic recovery sent the Dow down more than 2% on Monday.

In a speech about the U.S. economy, President Joe Biden said the recovery hinges on getting the pandemic under control. He said four states with low vaccination rates accounted for 40% of all cases last week.

“So please, please get vaccinated,” Biden said. “Get vaccinated now.”

The average number of new COVID-19 cases per day has tripled in the past 30 days in the United States, according to an analysis of Reuters data. In the month from June 18 to Sunday, it climbed from 12,004 to 32,136.

The average number of people hospitalized with COVID-19 has gone up 21% over the past 30 days to over 19,000, up from 16,000, according to the same Reuters analysis.

Deaths, which can lag weeks behind a rise in cases, rose 25% last week from the previous seven days with an average of 250 people dying a day.

Some states have been especially hard hit. All but two of the 75 Arkansas counties have substantial or high levels of transmission, according to data from the U.S. Centers for Disease Control and Prevention (CDC).

But even in states with higher vaccination rates, such as New York, officials have expressed concern about fresh outbreaks, pointing to the significantly more contagious Delta variant.

So far, the variant has been detected around 100 countries globally and is now the dominant variant worldwide, top U.S. infectious disease expert Anthony Fauci told reporters last week.

In California, Los Angeles County reimposed a mask mandate at the weekend. It followed six straight days of more than 1,000 new COVID-19 cases in the county, with nearly 400 people hospitalized with COVID-19 as of Wednesday, up 275 from the week before.

While New York City Mayor Bill de Blasio acknowledged a rise in the number of cases, he told a daily news conference on Monday there were no plans to reintroduce mask mandates. He vowed instead to redouble vaccination efforts.

Overseas, COVID-19 restrictions are being reimposed in countries experiencing worrying spikes. The Netherlands announced it was re-imposing work-from-home guidelines due to soaring COVID-19 infections, just weeks after lifting them, as well as some restrictions on bars, restaurants and nightclubs.

Britain ended over a year of COVID-19 lockdown restrictions on Monday but the so-called “Freedom Day” was marred by surging infections and grim forecasts.

The U.S. Centers for Disease Control and Prevention on Monday issued a more severe warning against travel to the United Kingdom, elevating the nation to “Level Four: COVID-19 Very High,” the CDC’s highest level.

(Reporting by Maria Caspani in New York; Additional reporting by Anurag Maan, Sharon Bernstein and Caroline Humer; Editing by Howard Goller)

Canada to ease border measures, welcome vaccinated U.S. tourists next month

OTTAWA (Reuters) -Canada will start allowing fully-vaccinated U.S. citizens and permanent residents into the country on Aug. 9 for non-essential travel as the threat from the COVID-19 pandemic fades, Ottawa said on Monday.

Businesses on both sides of the border, particularly the travel and airline industries, are demanding an end to restrictions on non-essential travel between Canada and the United States which were first imposed in March 2020.

Fully-vaccinated visitors from countries other than the United States will be permitted to enter beginning on Sept. 7. The relaxation depends on Canada’s COVID-19 epidemiology remaining favorable, the government said in a statement.

“Thanks to the hard work of Canadians, rising vaccination rates and declining COVID-19 cases, the government … is able to move forward with adjusted border measures,” it said.

People eligible to enter Canada must have been fully vaccinated at least 14 days beforehand. From Aug. 9, Ottawa is also lifting the requirement that all travelers arriving by air must spend three nights in a hotel.

The government repeated that Canadians should avoid non-essential travel abroad.

(Reporting by David Ljunggren and Steve SchererEditing by Paul Simao)

U.S. and allies accuse China of global hacking spree

By Steve Holland and Doina Chiacu

WASHINGTON (Reuters) – The United States and its allies accused China on Monday of a global cyberespionage campaign, mustering an unusually broad coalition of countries to publicly call out Beijing for hacking.

The United States was joined by NATO, the European Union, Britain, Australia, Japan, New Zealand and Canada in condemning the spying, which U.S. Secretary of State Antony Blinken said posed “a major threat to our economic and national security.”

Simultaneously, the U.S. Department of Justice charged four Chinese nationals – three security officials and one contract hacker – with targeting dozens of companies, universities and government agencies in the United States and abroad.

The Chinese Embassy in Washington did not immediately respond to a request for comment. Chinese officials have previously said China is also a victim of hacking and opposes all forms of cyberattacks.

While a flurry of statements from Western powers represent a broad alliance, cyber experts said the lack of consequences for China beyond the U.S. indictment was conspicuous. Just a month ago, summit statements by G7 and NATO warned China and said it posed threats to the international order.

Adam Segal, a cybersecurity expert at the Council on Foreign Relations in New York, called Monday’s announcement a “successful effort to get friends and allies to attribute the action to Beijing, but not very useful without any concrete follow-up.”

Some of Monday’s statements even seemed to pull their punches. While Washington and its close allies such as the United Kingdom and Canada held the Chinese state directly responsible for the hacking, others were more circumspect.

NATO merely said that its members “acknowledge” the allegations being leveled against Beijing by the U.S., Canada, and the UK. The European Union said it was urging Chinese officials to rein in “malicious cyber activities undertaken from its territory” – a statement that left open the possibility that the Chinese government was itself innocent of directing the espionage.

The United States was much more specific, formally attributing intrusions such as the one that affected servers running Microsoft Exchange earlier this year to hackers affiliated with China’s Ministry of State Security. Microsoft had already blamed China.

U.S. officials said the scope and scale of hacking attributed to China has surprised them, along with China’s use of “criminal contract hackers.”

“The PRC’s Ministry of State Security (MSS) has fostered an ecosystem of criminal contract hackers who carry out both state-sponsored activities and cybercrime for their own financial gain,” Blinken said.

U.S. security and intelligence agencies outlined more than 50 techniques and procedures that “China state-sponsored actors” use against U.S. networks, a senior administration official said.

Washington in recent months has focused heavy attention on Russia in accusing Russian hackers of a string of ransomware attacks in the United States.

The senior administration official said U.S. concerns about Chinese cyber activities have been raised with senior Chinese officials. “We’re not ruling out further action to hold the PRC accountable,” the official said.

The United States and China have already been at loggerheads over trade, China’s military buildup, disputes about the South China Sea, a crackdown on democracy activists in Hong Kong and treatment of the Uyghurs in the Xinjiang region.

Blinken cited the Justice Department indictments as an example of how the United States will impose consequences.

The defendants and officials in the Hainan State Security Department, a regional state security office, tried to hide the Chinese government’s role in the information theft by using a front company, according to the indictment.

The campaign targeted trade secrets in industries including aviation, defense, education, government, health care, biopharmaceutical and maritime industries, the Justice Department said.

Victims were in Austria, Cambodia, Canada, Germany, Indonesia, Malaysia, Norway, Saudi Arabia, South Africa, Switzerland, the United Kingdom and the United States.

“These criminal charges once again highlight that China continues to use cyber-enabled attacks to steal what other countries make, in flagrant disregard of its bilateral and multilateral commitments,” Deputy U.S. Attorney General Lisa Monaco said in the statement.

(Reporting by Steve Holland, David Shepardson, Doina Chiacu and Lisa Lambert; Editing by Chizu Nomiyama and Grant McCool)