IT sector slams China's new cybersecurity rules

The technology industry has firmly objected to new Chinese rules requiring IT companies doing business with China's public sector to meet intrusive new requirements, including installing backdoors.

New regulations require companies selling computer equipment to government agencies and banks to submit to audits, supply copies of the source code of the technology and build backdoors that can be used by intelligence agencies, the New York Times reported.

Under the new regulations, source code must be supplied for most computer and networking equipment.

The government has also set targets including ensuring that 75% of technology products used by Chinese banks must be "secure and controllable" by 2019.

Companies looking to sell to banks will also need to set up R&D centres in China and obtain permits for workers servicing technology equipment.

A draft anti-terrorism law would also require companies to store all data related to Chinese users on local servers and create methods to allow content to be monitored to terror threats, including providing encryption keys.

But in a letter signed by technology industry groups and the US Chamber of Commerce, the technology industry protested the new rules as an attempt at protectionism.

The letter calls for "urgent discussion and dialogue" about the growing trend for requiring the use of only technology supplied by Chinese companies.

Vendors will be very reluctant to share their source code over IP protection concerns, but will not be able to afford to ignore the Chinese market.

The US government's authority to protest the changes will also be undermined by Edward Snowden's revelations about the NSA's cyber surveillance efforts.

Image courtesy of picturenarrative under CC