China’s Foreign Minister was right to say that China and the U.S. are not in a cyberwar. It is not in China’s interest to attack the U.S. or destabilize Wall Street, as the high degree of economic interdependence means an attack would harm China as much as the U.S. But this is not the same as saying all is well in cyberspace. There is real risk to both the bilateral relationship and to China’s relations with the rest of the world. The issue is not war, but cyber espionage. Cyber espionage exacerbates tensions and the situation will get worse until this changes.