Cyber issues loom large in U.S.-China summit

RANCHO MIRAGE, Calif. -- Opening a two-day summit, President Barack Obama drew attention to contentious economic and cybersecurity issues last night as he warmly received Chinese President Xi Jinping to a California desert estate for high-stakes talks.

Under a shaded walkway as temperatures surged to more than 100 degrees, the two leaders -- in suit coats but no ties -- greeted each other and walked side by side to start their first in-person meetings since Xi took office in March.

"Our decision to meet so early [in Xi's term] signifies the importance of the U.S.-China relationship," Obama said. Previewing their talks, Obama said he would also stress the importance of human rights, another sensitive issue with the Chinese.

Xi did not mention cybersecurity, human rights or North Korea, areas of potential tensions between the two powers.

Speaking through a translator, Xi said both leaders were "meeting today to chart the future of U.S.-China relations."

The two leaders were meeting at the 200-acre Sunnylands estate just outside Palm Springs, Calif. They were to take questions from reporters last night after a bilateral meeting, then hold a working dinner and additional talks this morning.

Obama's urging of Xi to stop reported Chinese hacking against the United States could be overshadowed by new revelations that Obama's own administration has been secretly collecting information about phone and Internet use. The actions of both China and the United States underscore the vast technological powers that governments can tap to gather information from individuals, companies and governments.

Already the White House is encouraged that Xi agreed to the unusual California summit. The talks will be void of the formal pageantry that Chinese leaders often expect during state visits to the White House.

For the United States, the most pressing matter is China's alleged cyberspying on the American government and on businesses. Obama is expected to warn Xi against continuing such practices, which China publicly denies.

Xi is likely to press China's claims of business discrimination in U.S. markets and to express concern over Obama's efforts to expand U.S. influence in the Asia-Pacific region, which China sees as an attempt to contain its growing power.