• Secretary of State John Kerry shakes hands with China’s State Councilor Yang Jiechi during the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in Washington. (AP Photo/Pablo Martinez Monsivais)

    Secretary of State John Kerry shakes hands with China’s State Councilor Yang Jiechi during the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in Washington. (... AP Photo/Pablo Martinez Monsivais) (The Associated Press)

  • Secretary of State John Kerry listens as China's State Councilor Yang Jiechi speaks at the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in Washington. (AP Photo/Pablo Martinez Monsivais)

    Secretary of State John Kerry listens as China's State Councilor Yang Jiechi speaks at the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in Washington. (AP ... Photo/Pablo Martinez Monsivais) (The Associated Press)

  • Secretary of State John Kerry, China's State Councilor Yang Jiechi, left, and others, participate in the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in Washington. (AP Photo/Pablo Martinez Monsivais)

    Secretary of State John Kerry, China's State Councilor Yang Jiechi, left, and others, participate in the Strategic Track Ocean meeting during the US China Strategic and Economic Dialogue (S&ED), Wednesday, June 24, 2015, at the State Department in ... Washington. (AP Photo/Pablo Martinez Monsivais) (The Associated Press)

Kerry: US, China to work on cyber code of conduct amid tensions over state-backed hacking

Markets Associated Press

Secretary of State John Kerry says China has agreed to work with the U.S. to complete a code of conduct on cyber activities.

Continue Reading Below

Kerry was speaking after two days of talks on security and economy, amid tensions over allegations of state-sponsored cybertheft by China that have strained relations.

Kerry said the U.S. is deeply concerned about intrusions that have raised security questions and harmed U.S. businesses. He said the U.S. and China should be working together for a shared understanding of appropriate state behavior in cyberspace.

State Councilor Yang Jiechi said China is cracking down on hacking and is ready to cooperate with the U.S. on cybersecurity. But he urged the U.S. to "respect facts."

China has recently denied allegations it was behind a massive breach of U.S. federal personnel records.