(Dell Cameron)
The U.S. government is less than thrilled that Chinese banks might
place restrictions on foreign—specifically, American—information
technology equipment.
The regulations, which are opposed by various U.S. business groups,
led the U.S. to pressure China on Thursday to explain its decision at
the World Trade Organization (WTO).
The decision follows roughly 18 months of periodic disclosures
stemming from former National Security Agency contractor Edward Snowden.
Of particular concern to China, no doubt, is the sabotage of consumer
security products, such as encryption software, for the purpose of
espionage.
The Chinese government has said the changes are based on the need for
“secure and controllable” banking technology. The U.S., along with
Japan and the European Union, question whether the restrictions
contravene global trade rules.
In addition to servers, desktop computers and laptops, the rules also
promote the use of “indigenous” software. The U.S., in its WTO filing,
questioned whether that meant the code had to be written by Chinese
nationals.
“Does China exclude the possibility that foreign-developed technology
may provide a better security solution than a technology developed
indigenously?” the U.S. asked.
U.S. business leaders from a variety of technology-based industries
are concerned about the level of mistrust towards American products
abroad. The country’s Internet hosting providers, in some cases, have
been forced to obtain servers overseas and provide contracts that
specify their customer data will not transfer through, or be stored in,
the United States.
While the WTO may decide China is violating trade obligations by
banning foreign technology from its state-owned commercial banks, its
government is likely to respond that national security comes first,
which is an argument that should be all too familiar to Americans.
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