Spy Versus Spy Backdrop for U.S-China Meeting

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July 09 (Bloomberg) -- Richard Falkenrath, Principal at the Chertoff Group, discusses the U.S.-China meeting on cyber security and the ongoing saga of asylum seeker Edward Snowden. He speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Because kicking off the latest installment of the strategic dialogue with their counterparts.

It's often a snooze fest but this year it takes place against the back drop of spy versus spy.

Edward snowden has revealed a massive u.s. intelligence operation.

The u.s. has been calling out chinese cyberespionage for months.

Richard, are we hypocrites?

Can the united states still go after china for sibe espionage?

Yes, and yes.

Of course we do it and we try to get people to stop it.

A little bit of progress was made when the two presidents met last april and they decided finally to actually start talking about cybersecurity, until then they had not done so at all.

And for the private sectors, this really matters.

The two governments are not going to stop spying on one another.

It may be possible to reach some basic rules of the road about the extent to which they permit their surrogates to spy on private global companies.

I'm glad you mentioned the private sector and companies because we should draw a distinction between spying between selectal property, theft from u.s. companies and what the n.s.a. is doing, and certainly government officials should be able to do that.

No question, when the official spying, that's going to continue and they're not going to talk about that, except to score some rhetorical points.

As i said, it has gotten a little bit out of control with syndicates out of china spying on global companies, including, especially the financial industry here in new york.

And to the point where the obama administration raising this to the high level.

And the chinese ok, at least talk about it.

I can guarantee you these are not be particularly frank, candid talks.

They're very stilted and carefully scripted.

I'll say.

Well edward snowden certainly factors in one way or another.

While he remains hunkered down in the moscow airport, the guardian newspaper released a new excerpt with its interview.

The n.s.a. doesn't limit itself to foreign intelligence.

It collects all information.

There are literally no ingress or egress points anywhere in the united states where communication can enter or exit without being monitored, collected and analyzed.

Edward snowden speaking to the guardian, he's not going away.

Can i ask a dumb question?

Why are we wasting time on this guy?

When does something happen?

When can this story go away?

Yeah, it's sticking around.

The next big move will be if he manages to get out of the airport in russia to some other place.

The two other places -- well, putin can use his american express card and get him a one way ticket.

He may do that.

We may also find a way to divert that flight while it's overflying friendly air space and arrest him there.

So that's the next move.

We're not going to give up trying to get our hands on him, the u.s. government.

He's got to get out of there at some point.

Another dumb question, how do you defer a flight?

What do you do?

Well, you have to go to the national government that controls the air space and that air space has to instruct the plane to land.

And under the international rules of aviation they have to do it, otherwise a violation.

So, you've got to figure out the flight plan, figure out whose air space it's going through and ask them to do it.

They just did it with the president of bolivia.

They don't send jets up to fly next to it and all that?

We could, the united states could.

Next time i guy away you're going to divert my plane.

But no question this complicates an already complicated relationship between the united states and china.

Not to mention the fact that hong kong let them leave.

But boy are the chinese glad he's out of there and not their problem anymore.

Very difficult for the united states now to look across the table and be tough on cybersecurity when all this stuff is out for everyone to read right now.

Richard, thank you so much.

Fantastic.

And stephen king, thank you again, his book is "when the money runs out."

This text has been automatically generated. It may not be 100% accurate.

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