US and China back off internet arms race but Obama leaves sanctions on the table

• Barack Obama: 'The question now is 'Are words followed by actions?'
• Xi Jinping calls for more cooperation, adding issue should not be politicised

China and the US sought to paper over their differences on cybersecurity on Friday after an inconclusive summit aimed at defusing a growing internet arms race between the world's two largest economies.

Though welcoming a pledge by the Chinese president, Xi Jinping, to avoid "knowingly" spying on US companies, Barack Obama revealed he had threatened to pursue sanctions against Chinese entities the US suspects of carrying out a series of attacks that have enraged American politicians and businesses.