Site icon China Economic Review

Chinese authorities require technology firms to disclose encryption codes

Manufacturers of certain technology products will have to disclose encryption codes to the Chinese authorities for approval to participate in government procurement programs, the Wall Street Journal reported. The products affected by the new rules – which come into force on Saturday – include smart cards, firewall technology and internet routers. Encryption information is closely guarded by companies to the point that foreign players are unlikely to comply. This means they could be ineligible for government contracts for those products. Joerg Wuttke, president of the EU Chamber of Commerce in China, said last week that disclosing decryption information is “something companies cannot and will not do” because such codes are often kept secret for both competitive and security reasons. Industry observers see the regulation as part of a broader effort to promote domestic enterprises at the expense of their foreign competitors. Chinese officials claim that the policies aren’t discriminatory.

Exit mobile version