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China irks US with computer security review rules

By JOE McDONALD BEIJING (AP) -- The Chinese government is stirring trade tensions with Washington with a plan to require foreign computer security technology to be submitted for government approval, in a move that might require suppliers to disclose business secrets. China has one of the largest technology markets, with more than 253 million Internet users and 590 million mobile phone accounts. It has tried to leverage that to promote its high-tech industries, which lag foreign competitors. In 2001, Beijing tried to require computer and software suppliers to disclose how their encryption systems worked. That was scrapped after companies said the demand was too broad and trade secrets might fall into the hands of Chinese competitors. China also developed its own standard for third-generation mobile phones to compete with two global standards. But it agreed to let Chinese carriers use all three standards after U.S. and European officials expressed concern that it might try to keep out foreign technology. To read the complete article from The Associated Press, click here.

Full post as published by The Trade Secrets Vault on December 09, 2008 (boomark / email).