China imposes restrictions on the import of IT security goods
In recent times, China's influence over technological development, particularly in the IT sector, has been on the rise. This is evident in the country's rapid growth in the IT software industry, with a 29% increase to $89.3 billion in the first half of the year, as reported by China's Ministry of Industry and Information Technology.
This trend towards domestic technology is further reinforced by the Multi-Level Protection Scheme (MLPS), a government-mandated cybersecurity framework designed to protect national security, economic stability, and social order. The scheme classifies information systems based on their importance and risk level, requiring corresponding protection measures for each grade.
Foreign information security technology companies are significantly impacted by the MLPS. Companies operating in China or providing cybersecurity products and services to Chinese entities must comply with the MLPS requirements, often involving adapting their technologies to meet Chinese security standards. The MLPS also imposes a strict regulatory framework, mandating technical and organizational measures that foreign companies must implement to be authorized to sell or deploy information security technology in China.
The MLPS increases China's control over foreign information security technology, sometimes limiting access to foreign technologies that do not conform with the security requirements or are deemed a risk to national security. This creates market access barriers for many foreign cybersecurity firms.
The scheme is part of a broader regulatory environment including the Personal Information Protection Law (PIPL) and data classification regulations, which further affect foreign companies handling data.
The US trade group, the US Chamber of Commerce, has criticised the Chinese proposal to favour domestic technology in government procurement, which was made under the new rules known as the Multi-Level Protection Scheme. The US observers argue that the MLPS serves as a protectionist measure to boost the domestic IT industry in China.
This proposal has drawn criticism from the US, with a group of US IT industry executives, including Microsoft CEO Steve Ballmer, opposing the Chinese scheme to promote "indigenous innovation". The US industry has also expressed concerns over China's high tech protectionism.
In recent weeks, similar calls have been made to Canadian BlackBerry-maker RIM by India and various Gulf states. The young people of China, who hold a growing influence over technological development, are playing a significant role in this shift towards domestic technology.
References:
[1] China's IT software industry grew 29% to $89.3 billion in the first six months of this year. (Source: China's Ministry of Industry and Information Technology)
[2] The Multi-Level Protection Scheme in China urges foreign security technology companies to disclose encryption technologies.
[3] The new rules could potentially impact the use of foreign IT security technology in China.
[4] Some companies have reportedly had their premises inspected and asked to replace security systems with China-built technology.
[5] The US trade group has criticized the Chinese proposal to favor domestic technology in government procurement.
[6] The request was made under the new rules known as the Multi-Level Protection Scheme.
[7] The US observers argue that the Multi-Level Protection Scheme serves as a protectionist measure to boost the domestic IT industry in China.
[8] The proposal for favoring domestic technology in government procurement has drawn criticism from the US.
[9] The Chinese scheme to promote "indigenous innovation" has been opposed by a group of US IT industry executives, including Microsoft CEO Steve Ballmer.
[10] In recent weeks, India and various Gulf states have made similar calls to Canadian BlackBerry-maker RIM.
[11] The young people of China hold a growing influence over technological development. (Source: Interesting Links section)
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