Biden was speaking on Wednesday at the opening of the annual Strategic and Economic Dialogue between the two world powers.
Biden was introduced by Secretary of State John Kerry, who has returned to Washington for the two-day dialogue from his wife's bedside in Boston, after she was hospitalised.
Cabinet-level officials will review security and economic issues, which reflect growing ties but also deep-seated differences between the two countries.
Biden said an open internet is in both nations' interests and "outright cyber-enabling theft that US companies are experiencing now must be viewed as out of bounds and needs to stop”.
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