China plans to unveil new cybersecurity rules that require tech companies to hand over source code and build back doors in hardware and software for government regulators. The rules only apply to companies selling computer products to Chinese banks, but they have already sparked anxiety on the part of Western tech companies about being trapped between either giving up intellectual property or not doing business in China.
The new rules—part of cybersecurity policies intended to protect China’s critical industries—first appeared in a 22-page document at the end of 2014, according to a
New York Times report. Such rules have not been officially announced yet. But the
U.S. Chambers of Commerce joined a number of other foreign business groups in sending a
letter [pdf] to the Central Leading Group for Cyberspace Affairs, chaired by President Xi Jinping, that
called for “urgent discussions” about the policies. Tech giants such as Microsoft, Cisco, and Qualcomm have also independently voiced their concerns.
Under the bank rules, tech companies would have to hand over source code, set up research and development centers in China, and build hardware and software back doors that would permit Chinese officials to monitor data within their computer systems.
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