Beijing’s cyber-protectionism

An extraordinary coalition of business federations from the United States, Europe and Japan teamed up this week to send Beijing a message: back off of proposed cyber-security regulations that would force foreign firms to store data in China and surrender information and technology to Chinese security inspectors.

The business groups, which included the US Chamber of Commerce, BusinessEurope and Japan’s Keidanren, decried the new rules in a letter sent to Chinese premier Li Keqiang. Other signatories included more than 40 global industry groups representing financial services, technology and manufacturing sectors, and business lobbies from Australia, Mexico and Switzerland.

The petition was a response to draft regulations, announced by the China Insurance Regulatory Commission last month, requiring foreign insurers to use Chinese hardware and software to store and encrypt data. But global firms also are fuming over new banking regulations that would require them to hand over key technologies such as source codes and encryption algorithms to the Chinese government. (Beijing has delayed implementing those rules after protest from Washington.)

China insists it needs tighter controls on cyber-security and the Internet to guard against terrorism. Global companies aren’t buying it. The letter casts the regulations as thinly disguised protectionism and warns they will further isolate China from the global digital economy. The new provisions would “have no additional security benefits but would impede economic growth and create barriers to entry for both foreign and Chinese companies,” the letter declares. Continue reading “Beijing’s cyber-protectionism”

Choppy water

China’s has been making waves this week, and not just in the swimming pools of Rio.

Over the weekend, the Japanese government charged China with stirring up trouble in the East China Sea by dispatching more than 200 fishing boats into waters near islands Japan occupies but both countries claim.

On Monday, the New York Times published a series of photos collected and analyzed by the Center for Strategic Studies that appears to show China has built reinforced aircraft hangars on the three reefs it controls in disputed waters in the South China Sea. CSIS analysts say the hangars are large enough to accommodate military aircraft–bombers, refueling tankers and transport planes–which would seem to contradict Chinese president Xi Jinping’s September promise to President Obama that “China does not intend to pursue militarization” of the islets. Continue reading “Choppy water”

Barbarians shown the gate

When Uber Technology chief executive Travis Kalanick announced earlier this week that Uber will sell its China operations to arch-rival Didi Chuxing Technology Co he joined a long line of global tech titans forced to retreat from China.

Yahoo surrendered China operations to Alibaba in 2005. EBay withdrew from China in 2006. Facebook and Twitter have been banned since 2009. Google shut down its China search engine in 2010. Instagram and Snapchat have been blocked since 2014.

Uber’s exit provides the starkest evidence to date that China—the world’s second largest economy and No 1 market for ride-hailing— is off-limits to non-Chinese technology firms. Continue reading “Barbarians shown the gate”