Menu
U.S. business group urges China to loosen data-storage policies

U.S. business group urges China to loosen data-storage policies

China is considering IT policies that could further restrict foreign businesses, according to a U.S. lobbying group

Chinese security policies are threatening to push foreign businesses out of the country's IT sector by restricting the way data is stored, according to a U.S. lobbying group.

On Tuesday, the American Chamber of Commerce in China issued a report urging the country to change the policies. Increasingly, the Chinese government is enacting regulations to address national security concerns at the cost of hampering its own economy, the lobbying group warned.

China has been recently reviewing an antiterror law that could require tech companies to give up encryption keys to the authorities.

Although the U.S. has complained, China has said that it's essentially mimicking Western governments in their efforts to use the Internet and telecommunications to track terrorist activities. Following leaks that the U.S. had been secretly spying on the country, China has also been stepping up its efforts on cybersecurity.

The upcoming policies could end up encouraging Chinese businesses to buy domestic IT services over foreign ones. Existing Chinese regulations, however, are already creating roadblocks for foreign tech firms wanting to enter the market, according to the chamber.

Chinese policies have essentially demanded the creation of local data centers to meet the regulations. These laws include prohibiting banks from storing personal financial information outside the country, or allowing data to be removed from China if it contains state secrets.

In Tuesday's report, however, the chamber said China's policies were excessive and create a "redundancy" in data centers, which are costly to make and which small and medium-size companies can't afford.

Chinese regulations should instead open the market to encourage competition among security providers, the chamber said. "The Chinese government should take a more rational approach to its security issues," added James Zimmerman, chairman of the chamber, in the report.

Both the U.S. and China are negotiating a bilateral investment treaty. The chamber is urging that language be included to keep the data flow between the two countries unrestricted.

Convincing China to change its policies could entail the U.S. loosening its own restrictions against China.

On Monday, Chinese Premier Li Keqiang urged the U.S. to lift a ban on exporting high tech to the country, according to China's state media.

This comes just after the U.S. government blocked Intel from selling its chips to supercomputing centers in China. The U.S. government agencies claim the Intel chips had been involved in uses related to nuclear weapons testing.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags governmentsecurityregulationintel

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments