China Halts New Policy on Tech for Banks

China plans revisions on a policy that required foreign technology firms selling equipment to Chinese banks to turn over source code and other business secrets. The United States has accused hackers sponsored by the Chinese military of hacking corporate and government websites. China worries about surveillance installed with any US-made equipment. US officials anticipate the Chinese to encourage its firms to favor technology made in China. Some officials theorize that the Chinese government delayed the regulations to avoid distractions during upcoming meetings between Chinese and US officials, report Paul Mozur and Jane Perlez for the New York Times. “Foreign trade groups representing multinationals like Microsoft, IBM and Apple say the security concerns are a pretext to pass protectionist policies shutting foreign companies out of one of the world’s largest and fastest-growing information technology markets.” US President Barack Obama has suggested that nations and individuals sponsoring cyber attacks against online corporate sites could be subject to sanctions. China’s President Xi Jinping has set up an organization to consolidate management over the Internet and technology. – YaleGlobal