China is set to implement new rules that would require makers of certain electronic equipment to disclose key encryption information to be eligible for government procurement sales, creating a possible showdown with foreign companies that are unlikely to comply.
Beginning Saturday, makers of six categories of technology products, including smart cards, firewall technology and Internet routers, will have to disclose encryption codes to authorities for certification to participate in bidding for government purchases. Such encryption information is closely guarded by companies, and industry officials say foreign companies that fall under the new rules are unlikely to comply, which could mean they are cut off from government contracts for those products...
Disclosing encryption information is "something companies cannot and will not do," said Jorg Wuttke, president of the European Union Chamber of Commerce in China at a briefing last week, because such codes are often kept secret by companies for both competitive and security reasons.
Two companies that are likely to be affected by the rules are Gemalto NV, a maker of smart cards and other digital security products, and Cisco Systems Inc., the U.S. network-equipment giant. Cisco declined to comment on the new rules. Gemalto didn't immediately respond to a request for comment. (more)
