US President Barack Obama and Chinese President Xi Jinping have said they will take new steps to address cybercrime.
Speaking at a joint news conference at the White House, Mr Obama said they had agreed that neither country would engage in cyber economic espionage.
The deal covers the theft of trade secrets but not national security information.
President Xi also pledged to limit greenhouse gas emissions.
Mr Obama said any escalation in China’s alleged cybercrimes against the US would prompt sanctions.
“It has to stop,” he said. "The question is now, are words followed by action?
Reflecting on the use of sanctions against either individuals, businesses or state-run companies, he said:
“We will apply those, and whatever other tools we have in our tool kit, to go after cybercriminals either retrospectively or prospectively.”
Both countries deny taking part in the cybertheft of commercial secrets.
