Advertise with us


Chinese Companies Ordered to Limit Use of Foreign Security Technologies

2010-08-27 11:41

 

 

The Chinese regime is asking domestic banks and other large companies to limit the use of foreign computer security technologies.

The regime says it’s to guard national security, but critics say it violates the regime’s free-trade pledges by unfairly excluding foreign competitors.

The plan is called the Multi-Level Protection Scheme, and applies to sectors like banking, oil and gas, utilities and telecommunications. It classifies Chinese companies’ computer systems into five security levels. Those in the top three levels must use security technology from a company owned by a Chinese citizen.

Some believe the rules are geared to protect Chinese technology companies, and will pressure foreign companies to hand-over know-how, if they want to access the Chinese market.

The United States and Europe have already questioned the rules in the World Trade Organization, according to the Associated Press.

One US-based trade lawyer told the AP that the rules go too far, and while the regime's security concerns are legitimate, it can't label all foreign products as a security risk.