China asks some US tech firms to pledge commitment to its policies: NY Times

Published Thu, Sep 17, 2015 · 02:36 AM
Share this article.

[SHANGHAI] China is asking some US technology firms to directly pledge their commitment to contentious policies that could require them to turn user data and intellectual property over to the government, The New York Times reported.

Citing unidentified sources, the report said Beijing had distributed a document to some US firms earlier this summer asking them to promise they would not harm China's national security and would store Chinese user data within the country.

The NYT report, which comes just ahead of President Xi Jinping's first state visit to the United States, did not identify which companies had been asked to make the pledge.

The document also asked the companies that their products be"secure and controllable", a phrase that industry groups said could be used to force companies to build so-called back doors that would allow third-party access to systems, it said.

Officials at the Cyberspace Administration of China did not respond to a faxed request seeking comment.

Sources told Reuters last month that China had resumed work on a set of banking cyber security regulations it suspended earlier this year.

The previous regulations - containing provisions that required Chinese banks to buy more domestic IT equipment and Western tech vendors to disclose secret source code if they sell to lenders - drew strong protests from foreign business lobbies, the US and European governments.

China regulators suspended the plan in April, saying they would consider feedback from domestic banks. The suspension was seen as a diplomatic victory for the Obama administration, coming shortly after visits to Beijing by Treasury Secretary Jack Lew and Commerce Secretary Penny Pritzker.

In July, China's legislature adopted a sweeping national security law that said all key network infrastructure and information systems must be "secure and controllable".

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here