China Turns The Screw

China is turning the screw on US tech companies. Cisco, Apple, McAfee and Citrix have all had their names removed from the list of approved suppliers to China government departments.

This is a problem because China-based organisations spent $140 billion on tech products last year, says Gartner

One reason for kicking companies off the approved list is thought to be China’s push to help local tech firms; another is in response to Edward Snowden’s revelations that US tech gear is used for spying.

The China government has proposed a witty law which says that foreign companies selling tech goods to China must put in backdoors so the China government can monitor the equipment’s use.

The law would also oblige vendor companies to hand over encryption keys and require vendors to assist in decryption of communications when required.

Providers of Internet-based services would be obliged to store China-generated data on China- based servers.

US Secretary of State John Kerry has written a letter to the Chinese authorities objecting to the law.

Foreign vendors of tech equipment to Chinese banks are already being obliged to hand over their source code.

The truth is that America doesn’t have a leg to stand on when it comes to spying and the China government is using that to give its local tech companies a helping hand.

In 2010 the US government blocked Sprint Nextel from buying Huawei gear on security grounds.

What’s sauce for the goose is sauce for the gander.

 


Comments

5 comments

  1. Mike, what was not there was regulation by a govrernment whisch is supposedly democratically elected by its people. But the as I have said, we do not live on a democratic society. Just one of corrupt clowns paid by big business.

  2. That’s true Mike and it seemed it was all they were capable of. No understanding of wider implications, no grace under pressure, no wit, no intelligence just a stubborn insolence that they know best. Very depressing indeed from people in authority,

  3. Come on David, it’s in their job spec to lie, evade and bluster. What was not there was get caught !!

  4. Yes Stooriefit, one of the surprising, and depressing, things about Snowden is it showed up the poor quality of the people who head up the spy services. Some lied, some evaded, some blustered but none recognised the fact that there should be any limits on what they do.

  5. Any excuse for a trade war. The US tech sector have been telling their government that this was on the cards since Snowdon broke, and yet they still refuse to see it.

    Only last week an Admiral from the NSA (I think) was saying “we can put in secure back-doors because we have the best engineers in the world” and his interlocutor pointed out the equivalence of a foreign power demanding the same to which his insightful response was “we can work through this.”

    Perversely this could be good for home grown manufacturing, but unfortunately that is predicated on an end to dirt cheap gadgetry and significantly slowed world economic growth.

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